You can send money with a PayPal Credit Card, but only to your own PayPal account or to pay merchants
PayPal Credit is a line of credit issued by Synchrony Bank that lets you make purchases and pay bills through PayPal. It is not a debit card and does not hold your own money. Because of this, you cannot use it to send money directly to another person's bank account or PayPal account the way you would with a regular payment app.
What you can do is use your PayPal Credit Card to fund your PayPal wallet, then send that money to friends or family. You can also use the card to pay any merchant or bill that accepts PayPal. The card itself works like any other credit card at checkout — the money comes from your credit line, not from cash you own.
Key Takeaways
- PayPal Credit is a credit line, not a stored-value card, so you cannot send money directly from it to another person.
- You can add PayPal Credit to your PayPal wallet and then use that balance to send money to friends or family through PayPal's money transfer feature.
- Using PayPal Credit to fund a transfer counts as a cash advance and may trigger fees and higher interest rates than regular purchases.
- For direct person-to-person transfers, linking a debit card or bank account to PayPal is usually cheaper and faster than using credit.
How to add PayPal Credit to your PayPal wallet
Log into your PayPal account on the website or app. Go to your Wallet section — this is where PayPal stores your payment methods and any balance you hold. Look for the option to add money or transfer funds. Select PayPal Credit as the source.
Enter the amount you want to add. PayPal will ask you to confirm that you understand this is a cash advance on your credit line. Review the terms: cash advances usually carry a higher interest rate than regular purchases and may include an upfront fee. Once you confirm, the money moves into your PayPal balance when ready.
You now have that amount available to send to other people through PayPal's send money feature, or to use as a payment method at any merchant that accepts PayPal.
Sending money from your PayPal balance to another person
Open PayPal and select Send Money. Enter the recipient's email address or phone number. Type the amount and choose Friends and Family as the transfer type (this avoids merchant fees on both sides).
At checkout, PayPal will show you which payment method it will use. If you just added PayPal Credit to your wallet, make sure your PayPal balance is selected as the source — not the credit card itself. Confirm and send.
The recipient will see the money in their PayPal account within minutes if they are also a PayPal user. If they are not, PayPal will send them a notification and they can claim the money by creating an account or having it transferred to their bank account.
Why using PayPal Credit for transfers costs more
When you add PayPal Credit to your wallet, PayPal treats it as a cash advance, not a purchase. Cash advances on credit cards typically cost more than regular charges. Synchrony Bank may charge a one-time fee — usually 3 to 5 percent of the amount — and the interest rate on the cash advance balance is often higher than the rate on regular purchases.
Interest starts accruing when ready on a cash advance, even if you have a 0% promotional period on regular purchases. This means that if you add $500 to your PayPal wallet using PayPal Credit and do not pay it off quickly, you will owe interest on top of the cash advance fee.
For this reason, using PayPal Credit to send money to friends is usually more expensive than linking a debit card or bank account directly to PayPal. Those methods have no fees and no interest charges.
Using PayPal Credit to pay a merchant or bill
If you want to use PayPal Credit to pay for goods or services rather than to send money to a person, the process is simpler. At any store or website that accepts PayPal, select PayPal as your payment method at checkout. Log in to your PayPal account and choose PayPal Credit as the card you want to use.
The purchase will be charged to your PayPal Credit line as a regular purchase, not a cash advance. You will not pay a cash advance fee, and the interest rate will be the standard rate for your credit line. This is the intended use of PayPal Credit and usually costs less than using it to fund transfers.
You can also use your physical PayPal Credit Card — if you have one — anywhere Mastercard is accepted. The card works like any other credit card and does not require you to go through PayPal's website.
Alternatives for sending money without using credit
If you want to send money to friends or family without paying cash advance fees, link a debit card or bank account to your PayPal account instead. Go to your Wallet, select Add a Payment Method, and choose either Debit Card or Bank Account. Enter your card or account details and verify them.
Once verified, you can send money using that debit card or bank account with no fees and no interest charges. The money comes directly from your own funds, not from a credit line. Transfers usually complete within one to three business days.
Other apps like Venmo, Square Cash, and Zelle also let you send money to friends with no fees if you link a debit card or bank account. These are often faster and simpler than PayPal for person-to-person transfers.
What happens if you cannot pay back the cash advance
If you add PayPal Credit to your wallet but do not pay off the balance, it becomes part of your PayPal Credit account balance. You will owe the cash advance fee plus interest, and Synchrony will report the balance to credit bureaus just like any other credit card debt.
If you miss a payment, your credit score will drop and Synchrony may charge late fees. The interest rate may also increase if you fall behind. This is why using PayPal Credit for transfers should be a short-term move — add the money, send it, and pay off the balance as soon as possible.
Frequently Asked Questions
Can I send money directly from my PayPal Credit Card to someone else's bank account?
No. PayPal Credit is a credit line, not a payment account. You cannot use it to send money directly to a bank account. You can add it to your PayPal wallet, then send from your PayPal balance, but this triggers a cash advance fee and higher interest.
Is there a fee for adding PayPal Credit to my wallet?
Yes. PayPal treats adding credit to your wallet as a cash advance, and Synchrony Bank typically charges a fee of 3 to 5 percent of the amount. You will also pay a higher interest rate than you would on regular purchases.
Can I use PayPal Credit to pay bills?
Yes. If the bill payment service or merchant accepts PayPal, you can use PayPal Credit as your payment method. This is treated as a regular purchase, not a cash advance, so you will not pay the cash advance fee — only the standard interest rate on your credit line.
What is the fastest way to send money using PayPal?
Link a debit card or bank account to PayPal and use that to send money. It has no fees, no interest, and transfers usually complete within one to three business days. Using PayPal Credit is slower and more expensive because of the cash advance fee and interest charges.
Does PayPal Credit show up on my credit report?
Yes. PayPal Credit is issued by Synchrony Bank and reported to credit bureaus. Any balance you carry, late payments, or missed payments will affect your credit score just like any other credit card.