Yes, someone can pay you with a credit card on PayPal, but you need to understand how it works and what it costs you
When someone sends you money on PayPal using a credit card, PayPal processes that card as the payment source. You receive the money in your PayPal account, but PayPal charges you a fee for accepting it — usually between 2.2% and 3.49% of the amount, depending on the type of transaction and your account. The person paying you doesn't see this fee; you absorb it. This is different from receiving a bank transfer or debit card payment, which may have lower or no fees.
The key thing to know upfront: PayPal doesn't let the person paying you choose their payment method directly. They initiate a payment, and PayPal decides which of their linked payment sources to use — or they can select one themselves if they have multiple options on file. If a credit card is their only linked payment method, that's what will be used.
Key Takeaways
- PayPal charges you a fee when someone pays you with a credit card, typically 2.2% to 3.49% of the payment amount.
- The person paying you does not pay the fee themselves — it comes out of what you receive.
- You cannot prevent someone from using a credit card; you can only choose whether to accept PayPal payments at all.
- If you want to avoid credit card fees, you can ask the person to pay you through a different method, such as a bank transfer or PayPal balance transfer.
- Business transactions and personal transfers have different fee structures, so the rate you pay depends on which type of PayPal account you have.
How PayPal fees work when someone pays you with a credit card
PayPal's fee structure depends on what kind of account you have and what kind of transaction is happening. If you have a personal PayPal account and someone sends you money as a "friends and family" transfer, there is no fee — but this only works if they use their PayPal balance or a linked bank account. If they use a credit card for a friends and family transfer, PayPal charges you 2.2% plus $0.30.
If the transaction is labeled as a payment for goods or services (a business transaction), the fee is higher: 2.2% plus $0.30 for most credit cards, though some premium cards may trigger a 3.49% plus $0.30 fee. This is true whether the person uses a credit card, debit card, or bank account.
The fee is deducted from the money that lands in your PayPal account. If someone sends you $100 with a credit card as a friends and family transfer, you receive $97.70. You do not have the option to pass the fee to the person paying you in a personal transfer — that's PayPal's rule.
What happens when someone links a credit card to their PayPal account
When someone adds a credit card to their PayPal account, PayPal stores it as one of their payment sources. When they go to send you money, PayPal may automatically select their credit card if it's their primary payment method, or they may see a list of options and choose it themselves. You have no control over which payment method they pick.
If you want to know what payment method someone used to send you money, you can check the transaction details in your PayPal account. The transaction record will show whether it came from a credit card, debit card, or bank account. However, you cannot block credit card payments specifically — you can only turn off PayPal payments entirely or ask the person to use a different payment method.
Why someone might use a credit card to pay you on PayPal
People use credit cards on PayPal for several reasons. Some do it to earn credit card rewards — if their card offers cash back or points on all purchases, they may see a PayPal transfer as a way to earn rewards on money they were going to send anyway. Others use it because it's the only payment method they have linked to PayPal, or because they want the fraud protection that credit cards offer.
From your perspective, this matters because it means you are paying the fee so that someone else can earn rewards. If this bothers you, you can ask them directly to use a different payment method — a bank account transfer or their PayPal balance — which would cost you nothing. Many people don't realize they're costing you money and will switch if you explain it.
How to ask someone to pay you without using a credit card
The simplest approach is to ask directly. You might say: "I can receive money on PayPal, but credit card payments come with a fee that I pay. If you have a bank account linked to PayPal, that would help me out." Most people will switch if they know it matters to you.
If the person doesn't have PayPal set up yet, you can suggest they link a debit card or bank account instead of a credit card when they create their account. If they're paying you outside of PayPal, you might ask them to use a free transfer service like Venmo (which has no fees for standard transfers between personal accounts) or a direct bank transfer.
You can also provide your bank account information directly if you're comfortable with that, which lets them send money without any middleman or fees at all. The trade-off is that you're sharing banking details, so only do this with people you trust.
Alternatives if you want to avoid credit card fees entirely
If you regularly receive payments and want to minimize fees, consider which platform makes sense for your situation. Venmo charges no fee for standard transfers between personal accounts, though it does charge a fee if someone uses a credit card. Cash App has similar rules — free for bank transfers, but a fee for credit cards. Both are faster and simpler than PayPal for casual money transfers between people.
If you're receiving payments for a business or service, you might look into a payment processor like Stripe or Square, which have different fee structures than PayPal and may be cheaper depending on your volume. These are more complex to set up but can save money if you're processing many transactions.
For one-time or occasional payments, asking the person to use a bank transfer or their PayPal balance is usually the easiest solution. It costs you nothing and takes the same amount of time from their end.
What to do if someone insists on using a credit card
If you've asked someone to use a different payment method and they either can't or won't, you have a choice: accept the payment and absorb the fee, or decline and ask them to find another way to pay you. There's no middle ground — PayPal doesn't let you charge the fee back to the person or split it with them in a personal transfer.
If this is a regular situation — for example, you're selling items and people keep paying with credit cards — it might be worth switching to a business account or a different payment platform that lets you set your own fees or pass them to the buyer. But for occasional payments, it's usually simpler to just accept the fee as a cost of using PayPal.
Frequently Asked Questions
Can I see which payment method someone used to pay me?
Yes. Open the transaction in your PayPal account and look at the details. It will show whether the payment came from a credit card, debit card, bank account, or PayPal balance. This helps you understand whether you paid a fee and how much.
Does the person paying me see the fee?
No. In a personal transfer, PayPal deducts the fee from what you receive, not from what they send. They see the amount they sent, and you see a smaller amount after the fee. In a business payment, the fee structure may be different, but they still don't pay it directly.
What if I set up a business account instead of a personal account?
A business account has the same credit card fees as a personal account for most transactions. The main difference is that business accounts are designed for selling goods or services, and you can invoice people. The fee structure doesn't change based on account type — it depends on the transaction type (friends and family versus goods and services).
Can I block credit card payments on PayPal?
No. PayPal doesn't have a setting to block specific payment methods. You can only turn off PayPal payments entirely or ask people individually to use a different method. If you want to prevent credit card use, you'd need to use a different payment platform.
Is it worth asking someone to pay me a different way just to avoid the fee?
It depends on the amount. If someone is sending you $20, the fee is less than 50 cents — probably not worth the awkward conversation. If they're sending you $500 or more, the fee could be $10 to $15, which is worth asking about. Use your judgment based on the relationship and the amount.