Can You Get a Cash Advance From PayPal and Venmo?
Neither PayPal nor Venmo offers a traditional cash advance, but using a credit card to send money through either app could trigger one from your card issuer.
A credit card cash advance is when you borrow money against your credit card's available credit — similar to a short-term loan, but with more fees and interest than those associated with regular credit card purchases.
Does Venmo offer cash advances?
No, Venmo doesn't offer cash advances. Venmo is a peer-to-peer (P2P) payment app that lets you send and receive money, split bills, and pay friends. It's not a lender, and it doesn't provide direct loans or cash advances to users.
That said, Venmo does charge a 3% fee when you use a credit card to send money to someone. And depending on your credit card issuer, that transaction could also be classified as a cash advance on your card — which means additional fees and interest from your bank, not from Venmo.
More on that below.
Does PayPal offer cash advances?
No, PayPal doesn't offer personal cash advances — but it's worth knowing that PayPal and Venmo are owned by the same company, so the same basic rules apply to both.
PayPal does offer financing options for small businesses, but personal users can't borrow cash directly through the app.
Like Venmo, if you use a credit card to send money through PayPal, your card issuer may classify that transaction as a cash advance. PayPal's user agreement acknowledges this, noting that card issuers may charge a cash-advance fee when a credit card is used to send money.
Is using a credit card to send money on Venmo or PayPal considered a cash advance?
It depends on your credit card issuer, not Venmo or PayPal.
When you use a credit card to make a regular purchase (say, buying shoes online), your card issuer codes that as a standard purchase transaction. But when you use a credit card to send money to another person through a P2P app, many card issuers code that as a cash-equivalent transaction or a cash advance.
Why? Because you're essentially converting credit into cash rather than buying a product or service. Card issuers view this as higher risk, similar to withdrawing cash from an ATM with your credit card.
The result: you could be charged a cash advance fee by your card issuer — on top of any fee Venmo or PayPal charges — and interest may start accruing immediately with no grace period.
Every credit card company handles this differently. Some treat P2P payments as purchases; others treat them as cash advances. The only way to know for sure is to check your card's terms or call the number on the back of your card before you send.
Options to send money to friends and family
If you need to send money to someone and want to avoid potential cash advance fees, consider these options:
- Link a bank account or debit card. This is the simplest way to send money through Venmo or PayPal without triggering a cash advance, and it's typically free.
- Use your Venmo or PayPal balance. If you already have funds in your account, you can send money directly from there.
- Try Zelle. Built into many banking apps, Zelle lets you send money from your bank account — usually without a third-party app.
Cash advance fees from Venmo and PayPal
Before you send money using a credit card, it helps to know exactly what you might be charged — and by whom.
Fees from Venmo and PayPal | ||
|---|---|---|
| Transaction type | Venmo fee | PayPal fee |
| Send money via bank account or debit card | $0 | $0 |
| Send money via credit card | 3% of the amount | 2.99% of the amount + $0.30 fixed fee |
| Instant transfer to bank | 1.75% | 1.75% |
| Standard transfer to bank | $0 | $0 |
Fees are subject to change. Always check Venmo's fee page and PayPal's consumer fees page for the most current information.
Fees from your credit card issuer
On top of what Venmo or PayPal charges, your credit card issuer may add:
- A cash advance fee. Typically 3%–5% of the transaction amount, or a flat minimum (whichever is greater).
- A higher interest rate. Cash advance APRs are often higher than your regular purchase APR — sometimes 25%–30% or more.
- No grace period. Unlike purchases, interest on credit card cash advances starts accruing the same day the transaction posts.
How to avoid these fees
The simplest way to avoid cash advance fees when using Venmo or PayPal is to pay with your bank account or debit card instead of a credit card. That one change eliminates both the app's credit card fee and any potential cash advance charge from your issuer.
If you're unsure how your card issuer codes P2P payments, call the number on the back of your card and ask before you send.
Alternative ways to get a cash loan quickly
Find a direct lender
A lender like Advance America can provide short-term personal loans, payday loans, or installment loans without the uncertainty of how a transaction gets coded. You know exactly what you're borrowing, what the fees are, and when repayment is due. There are no surprises.
Advance America has been helping people navigate short-term financial needs for nearly 30 years. With 700+ store locations across 23 states and online options available, you can apply in person or from your phone and see if you qualify without any pressure or judgment.
Borrow from friends or family
If someone in your circle is able to help, this can be a fee-free option. Just be clear about repayment expectations upfront to protect the relationship.
Check your bank or credit union
Some banks and credit unions offer small personal loans or lines of credit to existing customers. If you have a relationship with your bank, it's worth asking what's available.
Consider a line of credit
A personal line of credit gives you access to funds you can draw from as needed — and you only pay interest on what you use. Advance America offers lines of credit in select states, which could be a flexible option depending on where you live.
Frequently asked questions
Does Venmo do cash advances?
No. Venmo is a peer-to-peer payment app, not a lender. It doesn't offer cash advances. However, using a credit card to send money through Venmo may trigger a cash advance fee from your card issuer.
Does PayPal do cash advances?
No. PayPal doesn't offer personal cash advances. PayPal Working Capital is a business financing product and isn't available to personal account holders as a cash loan.
Is Venmo considered a cash advance on a credit card?
Not automatically. Whether a Venmo transaction is coded as a cash advance depends on your credit card issuer — not Venmo. Many issuers do classify P2P payments made with a credit card as cash advances. Check with your issuer to be sure.
Does sending money on PayPal or Venmo with a credit card count as a cash advance?
It can. Your credit card issuer determines how the transaction is coded. Some treat P2P payments as purchases; others treat them as cash advances. To avoid the risk, use a linked bank account or debit card instead.
What's the fee for using a credit card on Venmo?
Venmo charges a 3% fee when you use a credit card to send money. Your credit card issuer may charge an additional cash advance fee on top of that.
What's a faster alternative to a PayPal or Venmo cash advance?
If you need funds quickly, a direct lender like Advance America may be worth exploring. You can apply online or in store, and options like payday loans, installment loans, and lines of credit are available depending on your state.
Notice: Information provided in this article is for informational purposes only. Consult your attorney or financial advisor about your financial circumstances.
About the author
Jennifer McKnight is the Senior Content Writer at Advance America. Drawing on her past financial struggles, she’s driven to create relatable content that empowers readers on their journey to financial stability.
