Yes, you can send money on PayPal with a credit card, but PayPal treats it differently than a bank account
PayPal lets you link a credit card and use it to send money to other people. However, PayPal charges a fee for credit card transfers — typically 2.9% plus $0.30 per transaction for domestic payments — while bank account transfers are free. The recipient gets the money the same way either way, but your cost changes based on the payment method you choose.
The process itself is straightforward: link your credit card to your PayPal account, select it as your payment method when sending money, and complete the transfer. The money usually arrives in the recipient's account within one to three business days, depending on whether they also use PayPal or have it sent to their bank account.
Key Takeaways
- PayPal charges 2.9% plus $0.30 for credit card transfers, while bank account transfers from your PayPal balance are free.
- You must link your credit card to your PayPal account first, which requires your card number, expiration date, and CVV.
- The recipient receives money the same way regardless of whether you pay with a credit card or bank account — the difference is only in what you pay.
- Credit card transfers take one to three business days to arrive, the same timeline as other PayPal transfers.
- Some credit card issuers treat PayPal transfers as cash advances rather than purchases, which may trigger different fees or interest rates.
How to link a credit card to PayPal
Open your PayPal account and go to the Wallet section. Select "Link a card or bank" and enter your credit card number, expiration date, CVV, and billing address. PayPal will verify the card by charging a small amount (usually $1 to $2) and crediting it back, or by asking you to confirm two small deposits that appear on your statement within a few days.
Once the card is verified, it appears in your Wallet as an available payment method. You do not need to keep a balance in your PayPal account to use a linked credit card — PayPal will charge the card directly when you send money.
Why PayPal charges more for credit card payments
PayPal charges a fee for credit card transfers because credit card companies charge PayPal a processing fee (called an interchange fee) every time a card is used. PayPal passes most of that cost to you. Bank transfers cost PayPal less to process, so they do not charge you a fee.
If you have money sitting in your PayPal balance — from a previous transfer, a refund, or a sale — you can send it for free by selecting "PayPal balance" as your payment method instead of your credit card. This is the cheapest way to send money through PayPal.
What your credit card issuer might charge on top
Some credit card issuers classify PayPal transfers as cash advances rather than regular purchases. A cash advance typically carries a higher interest rate than a purchase, starts accruing interest when ready (with no grace period), and may include an additional cash advance fee of 3% to 5% of the amount transferred.
Check your credit card's terms or call your issuer before sending a large amount through PayPal. Ask whether PayPal transfers count as cash advances or purchases. If your card treats them as cash advances, the total cost — PayPal's fee plus your card's cash advance fee and interest — can add up quickly.
Alternatives to sending money with a credit card
If you want to avoid credit card fees, transfer money from your bank account to your PayPal balance first, then send it to the recipient for free. This takes an extra day or two but costs nothing. If you need the money to arrive faster, some banks offer next-day transfers to PayPal.
For one-time transfers, Venmo, Square Cash, or your bank's own money transfer service may be cheaper or free, depending on your bank and the recipient's setup. These services often have lower fees or no fees for bank-to-bank transfers, though they may charge for credit card payments too.
Limits on how much you can send
PayPal sets a sending limit based on your account age and history. New accounts typically can send $500 to $2,000 per transaction, with a weekly limit of $5,000 to $20,000. Older, verified accounts with good transaction history may have higher limits. The limit is the same whether you use a credit card or bank account.
If you hit your limit, you can request an increase by going to your account settings and selecting "Increase my limits." PayPal will review your account and may raise the limit within a few days or weeks.
What happens if the recipient does not have PayPal
If you send money to someone without a PayPal account, PayPal emails them a link to claim the funds. They can either create a PayPal account or provide their bank account details to receive the money directly. The transfer still takes one to three business days, and you still pay the credit card fee.
If the recipient does not claim the money within 30 days, PayPal returns it to your account. You keep the fee you paid, so there is no refund if the transfer does not go through.
Frequently Asked Questions
Does PayPal charge a fee if I send money to a friend?
PayPal charges 2.9% plus $0.30 if you send money using a credit card, regardless of whether the recipient is a friend or a business. If you send money from your PayPal balance or a linked bank account, there is no fee for friends and family transfers.
Can I use a debit card instead of a credit card?
Yes. Debit cards linked to PayPal are treated the same as credit cards and incur the same 2.9% plus $0.30 fee. Your debit card issuer may also treat the transfer as a cash advance, so check with them first.
What if my credit card payment fails?
PayPal will notify you that the payment failed and ask you to try again with a different card or payment method. The recipient does not receive the money, and you are not charged a fee for the failed attempt.
How long does it take for money sent with a credit card to arrive?
One to three business days. The timeline is the same as any other PayPal transfer. Weekends and holidays may add extra time.
Can I dispute a PayPal transfer made with my credit card?
You can contact PayPal to report an unauthorized or fraudulent transfer. You can also dispute the charge with your credit card issuer if PayPal does not resolve it. Your credit card company may reverse the charge and refund you.