Yes, you can pay PayPal with a credit card
You can link a credit card to your PayPal account and use it to fund payments, transfers, and purchases. PayPal accepts most major credit cards — Visa, Mastercard, American Express, and Discover — whether the card is issued in the US or abroad. When you link a card and make a payment through PayPal, the charge goes to that card, not to a bank account.
The main reason to use a credit card with PayPal is to earn rewards on the purchase while keeping your bank account separate. You also get PayPal's buyer protection on top of your credit card's fraud protection. The trade-off is that PayPal charges a fee for some transactions, and your credit card company may charge a cash advance fee if they classify the transaction that way — though most don't.
Key Takeaways
- Link your credit card to PayPal by going to Wallet, selecting Add a Card, and entering your card number, expiration date, and CVV.
- PayPal charges a fee for sending money to friends or family (2.99% plus $0.30 in the US), but not for purchases at stores or websites that accept PayPal.
- Your credit card company may not count PayPal payments as a purchase — check your card's terms to see if cash advance fees explore.
- You can set a credit card as your default payment method so PayPal uses it automatically unless you choose a different card.
- Remove a card from PayPal at any time by going to Wallet, selecting the card, and choosing Delete.
How to add a credit card to your PayPal account
Log into your PayPal account on a computer or the PayPal app. On a computer, click Wallet at the top of the page. On the app, tap the menu icon (three horizontal lines) and select Wallet.
Click or tap Add a Card. Enter your card number, expiration date, and the three-digit security code (CVV) on the back. PayPal will ask for your billing address — make sure it matches what your credit card company has on file. Click Link Card or Add. PayPal may charge a small temporary hold to verify the card is real, then release it within a few days.
Once the card is linked, it appears in your Wallet. You can link multiple cards and switch between them when you make a payment. To set one as your default, click or tap the card and select Make Primary.
When PayPal charges a fee for credit card payments
PayPal does not charge a fee when you use a credit card to pay for goods or services at a store or website that accepts PayPal. The merchant pays PayPal's fee, not you.
PayPal does charge a fee when you send money to friends or family using a credit card. The fee is 2.99% of the amount plus $0.30 in the United States. For example, sending $100 to a friend costs $3.29. If you send money as a purchase instead of a personal transfer, the fee is lower — 1.99% plus $0.49 — but this option is only available for goods and services, not gifts.
Some countries have different fee structures. Check PayPal's current rates before you send money to confirm the exact cost.
Whether your credit card treats PayPal as a purchase or cash advance
Most credit card companies treat PayPal transactions as regular purchases, which means you earn rewards and pay your normal interest rate. However, some cards classify PayPal payments as cash advances, which carry a higher interest rate and may include an upfront fee of 3% to 5% of the amount.
The classification depends on your specific card and the type of PayPal transaction. Purchases at PayPal merchants are almost always treated as purchases. Sending money to friends or family is more likely to be flagged as a cash advance. Check your credit card's terms and conditions, or call the customer service number on the back of your card to ask how they classify PayPal transactions before you link the card.
If your card does charge a cash advance fee, you may want to link a different card or use a bank account instead for personal transfers.
How to change or remove a credit card from PayPal
To change which card PayPal uses by default, go to Wallet, click or tap the card you want to use, and select Make Primary. PayPal will use this card for all future payments unless you choose a different one at checkout.
To remove a card entirely, go to Wallet, click or tap the card, and select Delete or Remove. The card is unlinked when ready and PayPal will no longer charge it. Any pending transactions using that card will still go through.
If your credit card expires or you get a new card, you can update the card details in your Wallet instead of deleting and re-adding it. Click or tap the card, select Edit, and enter the new expiration date or card number.
What to do if PayPal won't accept your credit card
If PayPal rejects your card, the most common reasons are a mismatch between your billing address and what your credit card company has on file, an expired card, or a card that has been reported lost or stolen. Double-check that your address, city, state, and ZIP code are entered exactly as they appear on your card statement.
If the address is correct, contact your credit card company to confirm the card is active and not flagged for fraud. Some cards have a limit on online purchases or international transactions, and PayPal may be blocked if you have reached that limit. Your card issuer can temporarily raise the limit or remove the block.
If your card is still rejected after you have verified the address and contacted your card company, try linking a different card. If no cards work, you can link a bank account instead and use that to fund PayPal payments.
Frequently Asked Questions
Does PayPal charge a fee to link a credit card?
No. Linking a card to PayPal is free. PayPal may place a small temporary hold on your card to verify it is real, but this hold is released within a few days and you are not charged.
Can I use a prepaid credit card with PayPal?
Yes. Most prepaid cards work with PayPal as long as they have a Visa, Mastercard, American Express, or Discover logo. Some prepaid cards have restrictions on online purchases or international transactions, so check with your card issuer if PayPal rejects it.
Is it safe to link my credit card to PayPal?
PayPal encrypts your card information and does not share it with merchants. When you pay through PayPal, the merchant sees your PayPal account, not your card number. You also get PayPal's buyer protection on top of your credit card's fraud protection, so you have two layers of coverage if something goes wrong.
What happens if I dispute a PayPal charge with my credit card company?
Your credit card company will investigate the dispute and may reverse the charge. PayPal will also investigate on its end. If both sides find in your favor, you get the money back. If they disagree, your credit card company's decision usually takes priority. Disputing through PayPal first is faster — go to your transaction history, find the charge, and select Report a Problem.
Can I use a business credit card with PayPal?
Yes. Business credit cards link to PayPal the same way personal cards do. If you use PayPal for business payments, make sure you are using a business account, not a personal one, so your transactions are tracked separately for accounting purposes.