Yes, you can pay PayPal with a credit card, but the method depends on what you're paying for
You can link a credit card to your PayPal account and use it to send money, pay for purchases, or add funds to your PayPal balance. PayPal accepts most major credit cards: Visa, Mastercard, American Express, and Discover. The card gets stored in your account, and you choose it as your payment method when you check out or send money.
The catch is that PayPal charges a fee when you use a credit card for certain transactions. If you're sending money to another person (not a purchase), PayPal charges 2.2% of the amount plus $0.30 if you pay with a credit card. For purchases, there's usually no fee to you — the merchant pays it instead. But some transactions, like transferring money to your bank account, don't accept credit cards at all.
Key Takeaways
- You can link Visa, Mastercard, American Express, or Discover to your PayPal account and use it for payments and purchases.
- Sending money person-to-person with a credit card costs 2.2% plus $0.30, while paying for goods usually has no fee to you.
- PayPal does not accept credit cards for transferring money out to your bank account — you must use a debit card or bank account instead.
- Your credit card issuer may charge a cash advance fee if PayPal codes the transaction as a cash advance, though most purchases do not trigger this.
How to link a credit card to PayPal
Go to your PayPal account settings and select "Wallet" or "Payment methods" (the exact name varies by whether you're on mobile or desktop). Click "Link a card" and enter your card number, expiration date, CVV, and billing address. PayPal will verify the card by charging a small amount — usually under $2 — and then crediting it back. This takes one to two business days.
Once the card is verified, it appears in your wallet as an option at checkout. You can set it as your preferred payment method, or choose it individually each time you pay. You can link multiple cards and switch between them.
When you'll pay a fee for using a credit card
PayPal charges a fee only for certain types of transactions. The main one is sending money to another person: 2.2% of the amount plus $0.30. So if you send $100 to a friend, you pay $2.20 plus $0.30, totaling $2.50. This fee applies whether the recipient is in the US or abroad.
Paying for goods and services — buying something from a store or website that uses PayPal checkout — does not charge you a fee. The merchant pays PayPal's processing fee instead. Adding money to your PayPal balance from a credit card also does not charge a fee from PayPal, though your card issuer might charge a cash advance fee (see below).
Transferring money out of PayPal to your bank account, paying bills, or withdrawing cash does not accept credit cards. You must use a debit card or link your bank account directly.
Cash advance fees from your credit card issuer
Your credit card company, not PayPal, may charge a cash advance fee depending on how the transaction is coded. Most PayPal purchases are coded as regular purchases, so no cash advance fee applies. But if you add money to your PayPal balance or send money person-to-person, your card issuer might treat it as a cash advance.
Cash advance fees are typically 3% to 5% of the amount, and cash advances also start accruing interest immediately — there's no grace period like there is for regular purchases. Check your card's terms or call the issuer's customer service line to ask whether PayPal transactions trigger a cash advance fee. Some issuers do; others do not.
Why you might want to use a debit card instead
If you're sending money person-to-person, a debit card avoids the 2.2% plus $0.30 fee that credit cards carry. PayPal charges no fee when you pay with a debit card or bank account for person-to-person transfers. The downside is that debit cards offer less fraud protection than credit cards — if someone steals your debit card number, the money comes directly from your bank account.
For purchases, credit cards and debit cards are treated the same by PayPal (no fee to you either way). But credit cards offer better purchase protection and rewards, so most people use a credit card for shopping and a debit card or bank account for sending money.
Rewards and cash back on PayPal purchases
When you use a credit card to pay through PayPal, your card's rewards program still applies. If your card earns 2% cash back on all purchases, you earn 2% on the PayPal transaction. The merchant, not PayPal, determines the category — so a purchase through PayPal might code as "online shopping" or "general purchases" depending on what the merchant sells.
Some credit cards offer bonus categories for online shopping or specific retailers. If you're buying from a store that participates in your card's bonus category, you'll earn the higher rate even though you're paying through PayPal. Check your card's terms to see which categories earn bonus rewards.
What happens if you don't have a credit card linked
You can still use PayPal without a credit card. You can link a debit card, a bank account, or add money to your PayPal balance using a bank transfer. If you receive money from someone else, it sits in your PayPal account and you can spend it from there without adding your own payment method.
The main limitation is that you cannot make a purchase or send money if your PayPal balance is zero and you have no payment method on file. Most people link at least one card or bank account as a backup.
Frequently Asked Questions
Does PayPal charge a fee if I use a credit card to pay for something online?
No. When you use a credit card to pay for goods or services through PayPal checkout, PayPal charges no fee to you. The merchant pays PayPal's processing fee. You only pay a fee if you're sending money person-to-person (2.2% plus $0.30).
Can I use a credit card to transfer money out of PayPal to my bank account?
No. PayPal only accepts debit cards or bank accounts for withdrawals. Credit cards cannot be used to move money out of your PayPal balance. You can use a credit card to add money to PayPal, but not to take it out.
Will my credit card company charge me a cash advance fee for PayPal?
It depends on your card issuer and the type of PayPal transaction. Most purchases code as regular transactions and do not trigger a cash advance fee. But adding funds to your PayPal balance or sending money person-to-person might. Call your card issuer to ask which PayPal transactions they treat as cash advances.
Do I earn rewards if I pay through PayPal with my credit card?
Yes. Your credit card's rewards program applies to PayPal purchases just like any other online purchase. The category and earning rate depend on what you're buying and how the merchant codes the transaction, not on PayPal itself.
What credit cards does PayPal accept?
PayPal accepts Visa, Mastercard, American Express, and Discover. It does not accept store cards or prepaid cards in most cases. Some prepaid cards work if they're branded with Visa or Mastercard, but check with your card issuer first.