Apple Pay Cash can not come from credit cards [Updated]

It is no longer possible to transfer money to an Apple Pay Cash account from a credit card. The transfer of funds via a debit card from another bank is however allowed.

The service still allows users to make person-to-person payments, but the money can not come from a credit card.

Apple Pay Cash is supposed to be the easiest way to send money to another person with the help of your iPhone. But if you use a credit card, the situation is a bit more complicated. You can no longer use your credit cards to make person-to-person payments.

Apple Pay Cash's Credit Card Attack

The new rules are outlined in the updated guidelines of Green Dot, the bank that Apple uses for Apple Pay Cash.

"Credit cards are not supported payment cards and therefore can not be used to fund a P2P transfer or to add funds to your Apple Pay Cash card," the guidelines say.

Apple and Green Dot say the move is intended to help customers avoid the cash advance fees they may incur after paying another person with a third-party credit card.

You can still make person-to-person payments in the United States using a debit card that is compatible with Apple Pay. You can also pay third parties using your Apple Pay Cash balance.

Apple Pay Cash adds instant transfer option

It's not just bad news. The updated guidelines also introduce a new instant transfer option, which allows you to send all the money you have on your Apple Pay Cash card to an eligible debit card.

The instant transfer service works "within minutes of your request, but can take up to 30 minutes," says Green Dot. A 1% transfer fee will also be charged.