Yes, you can send money through PayPal with a credit card, but PayPal charges a fee and treats it differently than sending from a bank account
PayPal lets you link a credit card and use it to send money to other people. When you do, PayPal charges you a fee — usually 2.2% of the amount plus $0.30 for transfers within the United States. That means sending $100 costs you $2.50. The person receiving the money gets the full amount; the fee comes out of your pocket.
The catch is that PayPal sees credit card transfers as a cash advance or purchase, depending on your card issuer. Your credit card company may charge you an additional cash advance fee (often 3% to 5% of the amount) and may start charging interest when ready, even if you normally get a grace period on purchases. This can make credit card transfers much more expensive than they first appear.
If you have a bank account linked to PayPal, sending money from that account costs nothing for personal transfers. Using a credit card should be your backup option, not your first choice.
Key Takeaways
- PayPal charges 2.2% plus $0.30 when you send money with a credit card, and this fee goes to PayPal, not the person receiving money.
- Your credit card company may charge an additional cash advance fee and start charging interest right away, making the total cost much higher than PayPal's fee alone.
- Sending money from a linked bank account through PayPal costs nothing for personal transfers and should be your first option.
- Credit card transfers work best for small amounts or emergencies when you cannot use your bank account.
How PayPal charges you when you use a credit card
PayPal's fee structure for credit card transfers is straightforward on PayPal's side: 2.2% of the amount plus a flat $0.30. On a $50 transfer, you pay $1.40. On a $200 transfer, you pay $4.70. PayPal takes this fee when ready and the recipient sees only what you sent.
The real cost comes from your credit card company. When you use a credit card to send money through PayPal, the card issuer typically classifies it as a cash advance, not a purchase. Cash advances come with their own fees — usually 3% to 5% of the amount — and interest starts accruing right away. You do not get the 21- to 25-day grace period that purchases normally have. Some card issuers charge interest from the transaction date; others charge from the posting date. Either way, interest compounds daily until you pay it off.
A $100 transfer can end up costing you $7 to $10 in fees alone, before any interest charges. If you carry the balance for a month, interest adds another $1 to $2 depending on your card's APR.
When to use a credit card instead of your bank account
Link your bank account to PayPal first. Transfers from a checking or savings account cost nothing for personal payments, and the money moves in one to three business days. This is the cheapest and most straightforward route.
Use a credit card only when your bank account is not linked, not available, or when you need to send money urgently and your bank account transfer is too slow. If you are sending money to cover an emergency and your bank account is temporarily frozen or under review, a credit card may be your only option. In that case, the fee is worth the speed.
Do not use a credit card for regular or recurring transfers. The fees and interest charges add up fast. If you find yourself sending money by credit card often, it is a sign you should link a bank account or reconsider whether you can afford to send the money at all.
How to link and use a credit card on PayPal
Open PayPal and go to your Wallet. Click "Link a card or bank" and enter your credit card number, expiration date, and CVV. PayPal will ask for your billing address. Once linked, the card appears in your list of payment methods.
To send money, click "Send money" and enter the recipient's email address or phone number. Enter the amount and choose your credit card from the payment method dropdown. Review the fee PayPal shows you — this is only PayPal's fee, not your card issuer's fee. Confirm and send.
The recipient gets the money in minutes if they have a PayPal account. If they do not, PayPal sends them a notification and they can claim the money by creating an account or providing bank details for a direct deposit.
What happens if your credit card company declines the transfer
Some credit card issuers block PayPal transfers outright or flag them as suspicious. If your transfer is declined, PayPal will tell you when ready. The money does not leave your account.
Call your credit card company and ask why the transfer was blocked. Some companies require you to call and authorize PayPal transfers before they will go through. Others have fraud detection rules that block money transfers to unfamiliar recipients. Ask the company to allow the transfer and try again.
If your card issuer consistently blocks PayPal transfers, they may not support them at all. In that case, use a different card if you have one, or link a bank account instead.
Credit card transfers versus other PayPal payment methods
PayPal offers several ways to send money, and the cost and speed depend on which one you choose. A transfer from your PayPal balance (money you have already added to your account) costs nothing and arrives when ready. A bank account transfer costs nothing but takes one to three business days. A credit card transfer costs 2.2% plus $0.30 and arrives in minutes, plus your card issuer may charge additional fees.
If you are sending money internationally, costs are higher across all methods. International transfers from a bank account cost 1% of the amount plus a flat fee that varies by country. International credit card transfers cost 2.2% plus $0.30, plus your card issuer's international transaction fee (usually 1% to 3%) and any cash advance fee.
For domestic personal transfers, the order of preference is: PayPal balance, then bank account, then credit card. For international transfers, compare the total cost of each method before you send.
Frequently Asked Questions
Does PayPal charge the person receiving the money when I send from a credit card?
No. The recipient gets the full amount you sent. PayPal takes its fee from you, not from them. Your credit card company's fees also come from your account, not the recipient's.
Can I use a prepaid credit card to send money on PayPal?
Yes, most prepaid cards work on PayPal the same way a regular credit card does. However, your prepaid card issuer may still charge a cash advance fee or block the transfer. Check your card's terms or call the issuer before you try.
What if I send money by credit card and then dispute the charge with my card company?
Your card issuer will investigate the dispute, but PayPal will likely fight it because you authorized the transfer. If the recipient has already received and spent the money, the dispute may fail. Disputes can take 60 to 90 days to resolve. Avoid this by confirming the recipient's details before you send.
Is sending money by credit card on PayPal safe?
PayPal encrypts your card information and does not share it with the recipient. The transfer itself is find. The risk is financial — if you send money to the wrong person or if your card is compromised, you may not recover it. Always double-check the recipient's email or phone number before you confirm.