Yes, you can send money on PayPal with a credit card, but PayPal treats it differently than a bank transfer
PayPal lets you link a credit card to your account and use it to send money to other people. However, PayPal charges a fee when you send money using a credit card — typically 2.2% of the amount plus $0.30 for transfers within the United States. If you link a bank account or debit card instead, PayPal charges no fee for personal transfers to friends and family.
The key difference is how PayPal categorizes the transaction. When you use a credit card, PayPal treats it as a cash advance or balance transfer, which is why the fee applies. Your credit card company may also charge you a separate cash advance fee — usually 3% to 5% of the amount — and the transaction may start accruing interest immediately, even if you normally get a grace period on purchases.
For this reason, sending money via credit card on PayPal makes sense only in specific situations: when you don't have a bank account linked, when you need to build credit card rewards on the transaction, or when the recipient urgently needs the money and you have no other option.
Key Takeaways
- PayPal charges 2.2% plus $0.30 to send money using a credit card within the U.S., while bank account transfers to friends and family are free.
- Your credit card company may charge a separate cash advance fee (usually 3% to 5%) and may start charging interest immediately on the amount sent.
- Linking a debit card or bank account to PayPal avoids both PayPal's fee and your card issuer's cash advance charges.
- Credit card transfers on PayPal may earn you rewards points, which can offset the fee if your card offers cash back or points on all purchases.
How to send money on PayPal using a credit card
Start by logging into your PayPal account on the website or mobile app. Click or tap the "Send money" button, which is usually on the home screen or in the main menu. Enter the recipient's email address or phone number, then enter the amount you want to send.
On the next screen, PayPal will ask you to choose a payment method. If you have already linked a credit card to your account, it will appear in the list. Select it. PayPal will then show you the fee — 2.2% plus $0.30 — before you confirm. Review the total and click "Send" to complete the transfer.
If you have not yet linked a credit card, you can add one during this process. Click "Add a card," enter your card number, expiration date, CVV, and billing address, then select it as your payment method. PayPal will ask you to verify the card with a small deposit (usually $1.95 to $2.05) that appears on your statement within a few days. Once verified, you can use it to send money.
When your credit card company charges extra fees
Before you send money, check your credit card's terms for cash advance fees. Most credit card issuers treat PayPal transfers as cash advances, not purchases. A cash advance fee is typically 3% to 5% of the amount transferred, charged immediately to your account.
Cash advances also usually start accruing interest right away — you do not get the same grace period you would for a regular purchase. If your card charges 20% annual interest, that interest begins accumulating the day you send the money, not at the end of your billing cycle.
Some credit cards do not charge a cash advance fee or treat PayPal transfers as regular purchases instead. Call your card issuer's customer service number (on the back of your card) and ask: "If I send money through PayPal, will you charge me a cash advance fee, and will interest start accruing immediately?" Their answer will tell you the true cost of using your credit card for this transfer.
Credit card rewards and whether they offset the fees
If your credit card earns cash back or points on all purchases — including cash advances — you may earn rewards on the PayPal transfer. For example, if your card offers 2% cash back on everything, you would earn $2 in rewards on a $100 transfer. PayPal's fee would be $2.30, so your net cost would be $0.30 plus any cash advance fee your card issuer charges.
However, most rewards cards earn points only on regular purchases, not cash advances. Check your card's rewards terms or call the issuer to confirm whether PayPal transfers earn rewards. If they do not, the fees will cost you money with no offset.
Even when rewards do apply, the math usually favors using a bank account or debit card instead. A 2% rewards rate would need to offset both PayPal's 2.2% fee and your card's cash advance fee — a tall order. Use a credit card for PayPal transfers only if you have confirmed that rewards apply and that your card issuer does not charge a cash advance fee.
Linking a bank account or debit card instead
The cheapest way to send money on PayPal is to link your bank account or debit card. PayPal charges no fee for personal transfers to friends and family when you use either of these methods. The money usually arrives in the recipient's account within 1 to 3 business days.
To link a bank account, go to your PayPal account settings, select "Wallet," and click "Link a bank account." PayPal will ask for your routing number and account number (found on the bottom left of a check). You can also give PayPal permission to log into your online banking to verify the account automatically.
Debit cards link the same way as credit cards: go to "Wallet," click "Add a card," and enter your debit card details. PayPal will verify it with a small deposit. Once linked, select your debit card or bank account as the payment method when you send money, and no fee will apply.
What happens if the recipient does not have a PayPal account
If you send money to someone who does not have a PayPal account, PayPal will send them a notification with a link to claim the money. They can create a PayPal account, or they can claim the funds without one and have PayPal deposit it into their bank account.
The fee structure remains the same regardless of whether the recipient has an account. You still pay PayPal's 2.2% plus $0.30 if you use a credit card, and your credit card company may still charge a cash advance fee. The recipient does not pay anything to receive the money.
Frequently Asked Questions
Does PayPal charge a fee if I send money to a friend using a credit card?
Yes. PayPal charges 2.2% of the amount plus $0.30 for personal transfers using a credit card in the U.S. Your credit card issuer may also charge a separate cash advance fee (typically 3% to 5%) and may start charging interest immediately. Bank account and debit card transfers have no PayPal fee.
Will my credit card company report this as a cash advance?
Most credit card issuers do treat PayPal transfers as cash advances, not purchases. This means a cash advance fee applies and interest starts accruing right away. Call your card issuer to confirm how they categorize PayPal transfers before you send money.
Can I use a credit card to send money on PayPal if I do not have a bank account?
Yes. You can link a credit card or debit card to PayPal and use it to send money even without a bank account. However, you will pay PayPal's fee plus any cash advance fee your card issuer charges. A prepaid debit card linked to PayPal would avoid the cash advance fee if your card issuer does not treat it as a cash advance.
What if I want to earn rewards on a PayPal transfer?
Some credit cards earn rewards on cash advances, but most do not. Call your card issuer and ask whether PayPal transfers earn rewards and whether they charge a cash advance fee. If both answers are yes, the rewards may partially offset the fees — but using a bank account or debit card will almost always be cheaper.
How long does it take for the money to arrive after I send it with a credit card?
PayPal transfers typically arrive within 1 to 3 business days, regardless of whether you use a credit card, debit card, or bank account. Transfers sent on weekends or holidays may take longer to process.