Send money for free with Discover program

Woman holding credit card

Discover Card cardholders have something new to discover.

Discover customers now can use their card to send money to just about anyone, just about anywhere in the world, as long as the recipient has a PayPal account.

Cardholders can use Discover's Money Messenger service to send money free via the Discover website or smartphone app. The recipient does not have to own a Discover card.

Each transaction will show up as a normal purchase and is eligible for cash back rewards. The Wall Street Journal's All Things Digital blog says this "roughly equates to .25 percent for the first $3,000 spent."

Discover touts the simplicity of the new service. Users can send funds to any PayPal member by using the recipient's cell phone number or email address.

Although other credit card companies are entering the game, Discover's program so far is cheaper than the rest.

Discover charges members no fee to use the Money Messenger service. (If you're paying for goods or services from a business, PayPal will charge the business for the transaction.) For example, American Express charges a fee for certain similar transactions on its Serve service.

Before entering into any person-to-person transaction, it’s smart to check with the card issuer to determine how much – if at all – you may be charged.

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