Yes, PayPal accepts credit cards, but the fees and rules depend on how you use it
PayPal lets you link a credit card to your account and use it to send money, pay for purchases, or fund transfers. However, PayPal treats credit card payments differently than debit cards or bank accounts — you'll pay a fee every time you use a credit card to send money or pay someone, and some credit card companies charge a cash advance fee on top of that.
The key distinction: if you're receiving money through PayPal (as a seller or through a payment request), the person paying you can choose their payment method. If you're the one sending money, you control which card or account you use, but credit cards cost more.
Key Takeaways
- PayPal charges 2.2% plus $0.30 when you send money using a credit card, compared to no fee for bank transfers or debit cards.
- Your credit card company may also charge a cash advance fee (typically 3% to 5%) because PayPal treats credit card transfers as cash advances, not purchases.
- You can link a credit card to PayPal for online shopping and bill payments, but using it to send money to another person costs significantly more than other payment methods.
- If someone sends you a payment request and you pay with a credit card, you absorb both PayPal's fee and your card's cash advance fee.
PayPal's fees when you pay with a credit card
When you use a credit card linked to your PayPal account to send money to another person, PayPal charges 2.2% of the amount plus $0.30. This is the same fee PayPal charges for international transfers, and it applies whether you're sending money domestically or abroad.
For example, if you send $100 to a friend using a credit card, PayPal takes $2.50 (2.2% of $100 plus $0.30). The recipient gets $100, but you pay $102.50 total. If you used a bank account or debit card instead, there would be no fee.
This fee structure is why PayPal recommends linking a bank account or debit card for personal transfers. The credit card fee exists because PayPal itself pays a processing fee to your credit card company, and it passes that cost to you.
Credit card companies may charge a cash advance fee on top
Most credit card companies classify PayPal transfers as cash advances, not purchases. A cash advance fee is typically 3% to 5% of the amount transferred, charged by your card issuer directly. This fee appears on your credit card statement separately from the PayPal fee.
Using the same $100 example: PayPal charges $2.50, and your credit card company charges $3 to $5 as a cash advance fee. Your total cost is $5.50 to $7.50 to send $100. Some credit cards also charge a higher interest rate on cash advances (sometimes 1% to 3% higher than the purchase rate), which starts accruing when ready with no grace period.
You can check your card's terms by logging into your card issuer's website or calling the number on the back of your card. Search for "cash advance fee" in the fee schedule. Not all cards charge this fee — some premium cards waive it — but most do.
Using a credit card for PayPal purchases and bills
Linking a credit card to PayPal for online shopping or bill payments works differently than sending money to a person. When you use your credit card at a merchant that accepts PayPal, the transaction is processed as a regular purchase, not a cash advance. You pay no PayPal fee, and your credit card company treats it as a normal purchase with your standard interest rate and grace period.
This is the most common way people use credit cards with PayPal — paying for items on eBay, Etsy, or other sites that offer PayPal checkout. The credit card fee only applies when you initiate a transfer of money to another PayPal user or bank account.
When someone sends you a payment request
If another PayPal user sends you a payment request and you choose to pay with a credit card, you will pay both the PayPal fee (2.2% plus $0.30) and your credit card company's cash advance fee. The person requesting the money receives the full amount, but you cover all costs.
This is one of the most expensive ways to move money through PayPal. If you have a bank account or debit card linked to your account, use that instead. If you only have a credit card available, consider whether the payment is urgent enough to justify the combined fees.
Comparing PayPal payment methods and their costs
| Payment Method | PayPal Fee | Card Issuer Fee | Total Cost to Send $100 |
|---|---|---|---|
| Bank account or debit card | None | None | $0 |
| Credit card (sending money) | 2.2% + $0.30 | 3–5% cash advance fee | $5.50–$7.50 |
| Credit card (online purchase) | None | None | $0 |
The table shows why most people should avoid using credit cards to send money through PayPal. A bank account or debit card costs nothing and takes the same amount of time. Credit cards make sense only for purchases at merchants that accept PayPal, where the transaction is treated as a regular purchase.
If you're deciding whether to link a credit card to PayPal, ask yourself what you'll use it for. Buying items online through PayPal checkout is fine. Sending money to friends or family is expensive and should be done with a bank account or debit card instead.
Frequently Asked Questions
Can I use a credit card to receive money on PayPal?
No. PayPal deposits money to a linked bank account or debit card, not to a credit card. If you want to receive payments, you must have a bank account or debit card on file. You can then transfer the money to a credit card separately if needed, but PayPal itself cannot deposit directly to a credit card.
Does PayPal charge a fee if someone pays me with a credit card?
PayPal charges the person paying you a fee if they use a credit card to send money. You (the recipient) do not pay a fee. However, if you are the one sending money and you use a credit card, you pay the fee. The fee structure depends on who initiates the transfer.
What's the difference between a PayPal fee and a cash advance fee?
PayPal's fee (2.2% plus $0.30) goes to PayPal. Your credit card company's cash advance fee (typically 3% to 5%) goes to your card issuer. Both are charged to you when you send money using a credit card. They are separate charges that appear in different places — one on your PayPal transaction history and one on your credit card statement.
Can I avoid the credit card fee by using PayPal Credit instead?
PayPal Credit is a separate product that works like a line of credit. If you use PayPal Credit to send money to another person, you still pay the 2.2% plus $0.30 fee. PayPal Credit is useful for making purchases at merchants that accept it, where you can pay over time, but it does not reduce fees for person-to-person transfers.