Yes, you can send money through PayPal with a credit card, but PayPal treats it differently than a bank transfer
PayPal lets you link a credit card to your account and use it to send money to other people. However, PayPal charges a fee when you send money with a credit card — typically 2.9% plus $0.30 for domestic transfers — whereas sending from a bank account or PayPal balance costs nothing. The person receiving the money gets it the same way either way, but the cost to you changes based on your payment method.
The process itself is straightforward: you log into PayPal, enter the recipient's email or phone number, choose the credit card as your payment source, and confirm. The money usually arrives within minutes to a few hours if the recipient has a PayPal account, or within one to three business days if PayPal needs to send it to their bank account instead.
Key Takeaways
- PayPal charges 2.9% plus $0.30 when you send money using a credit card, but charges nothing when you send from a bank account or PayPal balance.
- You must link your credit card to your PayPal account before you can use it to send money.
- The recipient receives the money the same way regardless of whether you paid with a credit card or bank account — the fee difference is only on your end.
- Money sent to another PayPal user arrives in minutes; money sent to a bank account takes one to three business days.
How to link a credit card to your PayPal account
Before you can send money with a credit card, you need to add it to your PayPal account. Log in to PayPal.com, click the gear icon in the top right, and select Wallet. Click Link a card and enter your card number, expiration date, CVV, and billing address. PayPal will ask you to confirm the card by checking small deposits (usually under $1) that appear on your statement within a few days.
Once the card is confirmed, it stays linked to your account. You do not need to re-enter it each time you send money. If you want to remove the card later, go back to Wallet, find the card, and click Unlink.
The step-by-step process for sending money with a credit card
Open PayPal and click Send money at the top of the page. Enter the recipient's email address or phone number. If they are not in your contacts, PayPal will search for their account; if no PayPal account exists under that email, PayPal will offer to send the money to their bank account instead (which takes longer).
Enter the amount you want to send. PayPal will show you the fee upfront — for example, if you send $100 with a credit card, you will see that the fee is $3.19 and the total charge to your card will be $103.19. Select your linked credit card from the payment method dropdown. Review the details and click Send. You will get a confirmation email, and the recipient will be notified that money is on the way.
Why PayPal charges more for credit card transfers
PayPal charges a fee when you use a credit card because the credit card networks (Visa, Mastercard, American Express) charge PayPal a processing fee for each transaction. PayPal passes that cost to you. When you send from a bank account or your PayPal balance, no credit card network is involved, so there is no middleman fee to pass along.
This is true across most payment platforms, not just PayPal. If you use Venmo, Square Cash, or similar services with a credit card, you will typically pay a fee; using a bank account is free. The fee structure exists because credit card companies charge merchants (in this case, PayPal) for the privilege of accepting their cards.
When sending with a credit card makes sense
Sending money with a credit card through PayPal makes sense in a few situations. If you do not have a bank account linked to PayPal yet and need to send money when ready, a credit card is faster than setting up a bank connection. If your credit card offers cash back or rewards on all purchases, you might earn points on the transfer fee, which could offset some of the cost — though this is rare and depends on your card's terms.
If you are sending a small amount (under $20), the fee might be acceptable to you. For larger transfers, the fee adds up quickly. A $500 transfer costs $14.95 in fees; a $1,000 transfer costs $29.90. In those cases, using a bank account or PayPal balance is almost always cheaper.
Alternatives to credit card transfers
If you want to avoid the credit card fee, link a bank account to PayPal instead. Go to Wallet, click Link a bank account, and follow the verification steps. Once linked, you can send money for free. The process is identical to sending with a credit card — you just choose the bank account from the payment method dropdown instead.
If you do not have a PayPal balance or linked bank account, you can also build up a PayPal balance by receiving money from others or by adding funds directly. Some employers and services deposit money into PayPal accounts, which you can then send out without any fee. If you receive regular payments through PayPal, this is often the cheapest way to send money onward.
What happens if the recipient does not have PayPal
If you send money to someone without a PayPal account, PayPal will send them a notification and give them a few days to claim it. If they do not have PayPal, they can create an account to receive it, or PayPal can deposit it directly into their bank account. The bank deposit takes one to three business days, and PayPal will ask for their bank details if they do not already have an account.
The fee you pay (2.9% plus $0.30) applies whether the recipient has a PayPal account or not. You are paying for the transfer itself, not for the recipient's account status. The recipient does not pay anything to receive the money.
Frequently Asked Questions
Does the recipient see that I paid with a credit card?
No. The recipient only sees that they received money from you through PayPal. They do not see which payment method you used on your end. Whether you sent from a credit card, bank account, or PayPal balance makes no difference to them.
Can I send money with a credit card if I do not have a PayPal account yet?
You need a PayPal account to send money, even with a credit card. You can create one for free at PayPal.com in a few minutes using an email address. Once your account is set up, you can link a credit card and send when ready.
What if my credit card is declined when I try to send money?
PayPal will show an error message and the transfer will not go through. Check that your card is not expired, that you have available credit, and that your billing address matches what is on file with your card issuer. If the card is linked but still declines, contact your credit card company — they may have blocked the PayPal transaction for fraud protection.
Is it safe to link my credit card to PayPal?
PayPal uses encryption and fraud detection to protect your card information. Your actual card number is not shared with recipients. That said, if you are concerned about security, using a bank account instead of a credit card removes the credit card from the transaction entirely and is equally safe.
Can I set a limit on how much I can send with my credit card?
PayPal does not let you set a per-transaction limit, but your credit card issuer may have limits on your available credit. PayPal also has account-level sending limits that depend on how long you have had your account and your transaction history. If you hit a limit, PayPal will tell you and you can contact them to request an increase.