Yes, you can send money through PayPal with a credit card, but PayPal charges a fee and treats it differently than a bank transfer
When you link a credit card to your PayPal account and send money to another person, PayPal processes it as a cash advance or payment transfer, not a purchase. This matters because your credit card issuer may charge you a cash advance fee — typically 3% to 5% of the amount — on top of PayPal's own fee. You will also start accruing interest on the transfer immediately, usually at a higher rate than your regular purchase APR. PayPal's fee for sending money to friends and family is free if you use a bank account or debit card, but 2.2% plus $0.30 if you use a credit card.
The process itself is straightforward: link your credit card to PayPal, enter the recipient's email or phone number, choose the amount, and confirm. The money arrives in the recipient's PayPal account within minutes. But the cost structure makes this option expensive compared to other methods, and you should understand what your card issuer will charge before you proceed.
Key Takeaways
- PayPal charges 2.2% plus $0.30 when you send money using a credit card, but charges nothing for bank account or debit card transfers.
- Your credit card issuer will likely charge a cash advance fee of 3% to 5% on top of PayPal's fee, and interest accrues immediately at your cash advance rate.
- A $100 transfer using a credit card can cost $5 to $7 in fees alone, plus daily interest charges.
- Bank transfers, debit cards, and PayPal balance transfers all cost less or nothing and should be your first choice if available.
How PayPal treats credit card transfers differently from other payment methods
PayPal categorizes transactions by the funding source you choose. When you send money from a bank account or debit card, PayPal treats it as a standard transfer and charges no fee to friends and family. When you use a credit card, PayPal classifies it as a payment and applies its 2.2% plus $0.30 fee.
Your credit card issuer sees this transaction as a cash advance, not a purchase. This is the critical distinction. Cash advances bypass your purchase protections and rewards — you earn no points or cash back — and they trigger two separate charges. First, the card issuer charges a cash advance fee at the time of the transaction. Second, interest begins accruing immediately at your cash advance APR, which is almost always higher than your purchase APR and has no grace period. A purchase might have a 21-day grace period before interest kicks in; a cash advance starts accruing interest the same day.
If you have a $0 balance on your card, you will still owe interest on the transferred amount from day one. This is why credit card transfers through PayPal are among the most expensive ways to move money.
What fees you will actually pay
The total cost of a credit card transfer through PayPal includes three separate charges: PayPal's fee, your card issuer's cash advance fee, and interest.
PayPal's fee is fixed: 2.2% of the amount plus $0.30. So a $100 transfer costs $2.50, a $500 transfer costs $11.30, and a $1,000 transfer costs $22.30. This fee is deducted from the amount the recipient receives unless you choose to cover it yourself.
Your card issuer's cash advance fee varies by card and issuer. Most cards charge 3% to 5% of the amount transferred, with a minimum fee of $2 to $10. Some cards charge a flat percentage with no minimum; others have both a percentage and a cap. Check your card's terms or call the issuer to confirm your specific cash advance fee before you transfer.
Interest accrues daily on the transferred amount at your cash advance APR. If your cash advance APR is 24% and you transfer $100, you owe approximately $0.66 in interest after 10 days. The longer the money sits in the recipient's account before they spend it, the more interest you pay. Unlike a purchase, there is no grace period to pay this back interest-free.
| Transfer Amount | PayPal Fee (2.2% + $0.30) | Card Issuer Fee (assume 4%) | Total Fees (before interest) | Interest per 10 days (assume 24% APR) |
|---|---|---|---|---|
| $100 | $2.50 | $4.00 | $6.50 | $0.66 |
| $500 | $11.30 | $20.00 | $31.30 | $3.29 |
| $1,000 | $22.30 | $40.00 | $62.30 | $6.58 |
These numbers assume you pay off the transferred amount within 10 days. If the money sits longer, interest compounds and your total cost rises.
When your card issuer might decline the transfer
Some credit card issuers block cash advances through PayPal or other money transfer services. They do this to reduce fraud risk and limit their exposure to high-interest lending. If your issuer has this restriction in place, PayPal will decline your transaction and tell you the card cannot be used for this type of transfer.
You can call your card issuer to ask whether they allow cash advances through PayPal. Some issuers will temporarily lift the restriction if you request it; others will not. If your card is blocked, you have two options: use a different card that allows it, or use a different funding method (bank account, debit card, or PayPal balance).
Issuers that do allow the transfer may also set a daily or monthly limit on cash advances. If you try to transfer more than your limit, the transaction will fail. Your card statement will show the limit under "Cash Advance Limit" or you can call the issuer to confirm it.
Cheaper alternatives to sending money through PayPal with a credit card
If you have a bank account linked to PayPal, use it instead. Bank transfers are free for friends and family and arrive within one to three business days. If you need the money faster, PayPal Instant Transfer to a debit card costs 1.75% and arrives within 30 minutes, which is still cheaper than a credit card transfer.
If you do not have a PayPal account or the recipient does not, consider these options: Venmo (free for bank transfers, 1% fee for instant transfers), Square Cash (free for bank transfers), or a direct bank transfer if you know the recipient's account and routing number. All of these cost less than a credit card transfer and do not trigger cash advance fees or interest.
If you must use a credit card because you do not have access to a bank account, ask yourself whether the transfer is urgent. If it is not, wait until you can fund PayPal from a bank account or debit card. The fee savings will almost always outweigh the cost of waiting a few days.
How the transfer appears on your credit card statement
The transaction will show on your statement as a cash advance, not a purchase. The merchant name will typically read "PAYPAL" or "PAYPAL *TRANSFER" followed by the recipient's name or identifier. The amount shown is the full transfer amount, not reduced by PayPal's fee — PayPal deducts its fee from what the recipient gets, and your card issuer charges its cash advance fee separately.
The cash advance fee will appear as a separate line item on your statement, labeled "Cash Advance Fee" or "CA Fee." Interest will not show as a separate charge; instead, it will be included in your interest charges at the end of the billing cycle. If you carry a balance on your card, the cash advance amount and all interest accrued on it will be included in your minimum payment calculation.
Because cash advances are not may be able to access for rewards, you will earn no points, miles, or cash back on this transaction, even if your card normally rewards all purchases. This is another reason credit card transfers are expensive — you lose the earning potential you would have on a regular purchase.
What happens if you cannot pay back the transfer
If you transfer money through PayPal with a credit card and then cannot pay off the balance, the transferred amount will accrue interest at your cash advance APR until you pay it. Unlike a purchase, there is no grace period, so interest starts immediately. If you only make minimum payments, the interest will compound and the balance will grow.
If you miss a payment, your card issuer will report the late payment to the credit bureaus after 30 days, which will damage your credit score. The cash advance balance will continue to accrue interest and late fees. After 180 days of non-payment, the issuer may charge off the account, meaning they write it off as a loss and may sell the debt to a collection agency.
The recipient of the money is not affected by your payment problems — they received the funds in their PayPal account and can spend or withdraw them. Your debt is only to your credit card issuer, not to the person you sent money to.
Frequently Asked Questions
Does PayPal charge a fee if I send money to friends and family with a credit card?
Yes. PayPal charges 2.2% plus $0.30 for credit card transfers to friends and family. Bank account and debit card transfers are free. Your credit card issuer will also charge a cash advance fee, typically 3% to 5%, on top of PayPal's fee.
Will I earn rewards points on a credit card transfer through PayPal?
No. PayPal classifies credit card transfers as cash advances, and cash advances do not earn rewards points, miles, or cash back, even if your card normally rewards all purchases. You lose the earning potential and pay fees instead.
How long does it take for money to arrive when I send it through PayPal with a credit card?
The money arrives in the recipient's PayPal account within minutes. However, if the recipient wants to withdraw it to their bank account, that takes one to three business days depending on their bank. The credit card transfer itself is instant.
Can I send money through PayPal with a credit card if my card issuer blocks cash advances?
No, the transaction will be declined. You can call your card issuer to ask if they allow cash advances through PayPal, and some will temporarily lift the restriction. If they will not, use a bank account, debit card, or a different payment method instead.
What is the difference between a credit card transfer and a debit card transfer through PayPal?
Debit card transfers are free and do not trigger cash advance fees or interest. Credit card transfers cost 2.2% plus $0.30 through PayPal, plus 3% to 5% from your card issuer as a cash advance fee, plus interest that accrues immediately. Debit card transfers are almost always cheaper.