Yes, PayPal accepts credit cards, but how you use them depends on what you're doing
PayPal accepts Visa, Mastercard, American Express, and Discover cards. You can link a credit card to your PayPal account and use it to send money, pay for purchases, or fund your balance. However, PayPal charges a fee when you use a credit card to send money to another person — currently 2.2% plus $0.30 per transaction in the US — while paying for goods and services with a linked card typically costs the seller a fee, not you.
The key distinction is whether you're paying a business (usually free to you) or sending money to an individual (usually costs you). Understanding which scenario applies before you link your card saves you from unexpected charges.
Key Takeaways
- PayPal accepts all major credit cards (Visa, Mastercard, American Express, Discover) linked directly to your account.
- Sending money to another person with a credit card costs 2.2% plus $0.30 per transaction, while paying a business for goods or services typically has no fee to you.
- You can add a credit card during account setup or later in your wallet settings under "Add a card".
- PayPal treats credit card payments as cash advances in some cases, which may trigger additional fees from your card issuer.
How to link a credit card to your PayPal account
Open PayPal on your computer or mobile app and sign in. On a computer, click the gear icon in the top right, then select "Wallet" from the menu. On the mobile app, tap the menu icon (three horizontal lines) and select "Wallet".
Click or tap "Link a card" or "Add a card". Enter your card number, expiration date, CVV (the three-digit code on the back), and the billing address associated with the card. PayPal will ask you to confirm the card by making a small deposit — usually $1.95 — to your bank account. Check your bank statement in 1 to 3 business days, find the deposit amount, and return to PayPal to enter it. Once confirmed, your card is ready to use.
When PayPal charges you a fee for using a credit card
PayPal charges a fee only when you use your credit card to send money to another person. This is called a "personal payment" and costs 2.2% of the amount plus $0.30. For example, sending $100 to a friend costs $2.50. This fee does not explore if you send money from your PayPal balance or a linked bank account instead.
Paying a business for goods or services — whether through PayPal's checkout button on a website or by sending money to a business account — does not charge you a fee, even if you use a credit card. The business pays a fee to PayPal, not you. The exception is international payments, which may carry a currency conversion fee regardless of payment method.
Credit card cash advance fees from your bank
Your credit card issuer may treat certain PayPal transactions as cash advances rather than purchases. Cash advances typically carry a higher interest rate and an upfront fee — often 3% to 5% of the amount — even though you are not withdrawing physical cash. This fee comes from your bank, not PayPal, and appears on your credit card statement.
Transactions most likely to trigger a cash advance fee are personal payments (sending money to another person) and transferring money to your bank account. Paying for goods and services through PayPal's checkout is usually treated as a purchase, not a cash advance. Contact your credit card issuer before making a large personal payment to confirm whether they will charge a cash advance fee.
Using a credit card at checkout on PayPal partner websites
When you see "Pay with PayPal" on a website, you can choose to check out as a guest using your credit card without creating a PayPal account. Enter your card details directly into the PayPal checkout form. PayPal does not charge you a fee for this transaction — the merchant pays PayPal's fee instead.
If you already have a PayPal account with a linked credit card, you can also click "Pay with PayPal" and log in to use that card. Either way, the transaction is treated as a purchase, not a personal payment, so you avoid the 2.2% + $0.30 fee.
Differences between credit cards and other payment methods on PayPal
| Payment Method | Sending Money to a Person | Paying a Business | Potential Extra Fees |
|---|---|---|---|
| Credit Card | 2.2% + $0.30 | No fee to you | Cash advance fee from your bank |
| Debit Card | 2.2% + $0.30 | No fee to you | Rare; depends on your bank |
| Bank Account | No fee | No fee to you | None |
| PayPal Balance | No fee | No fee to you | None |
If you want to send money to another person without paying PayPal's fee, use your bank account or PayPal balance instead of a credit card. Both are free. A bank account also avoids the risk of a cash advance fee from your card issuer.
What happens if your credit card is declined on PayPal
PayPal will notify you that the transaction failed and ask you to try a different payment method or update your card details. Common reasons for decline include an expired card, incorrect CVV, a billing address mismatch, or your bank blocking the transaction as potentially fraudulent.
Contact your credit card issuer to confirm the card is active and that they have not blocked PayPal transactions. Some banks require you to notify them before using your card on certain platforms. Once your bank confirms the card is clear, return to PayPal and retry the payment. If the problem persists, link a different card or use a bank account instead.
Frequently Asked Questions
Can I use a credit card to add money to my PayPal balance?
Yes, you can add money to your PayPal balance using a linked credit card. Go to your Wallet, select "Transfer Money", and choose "Add Money to Your Balance". Enter the amount and select your credit card as the source. PayPal does not charge a fee for this, but your card issuer may treat it as a cash advance.
Does PayPal accept prepaid credit cards?
Most prepaid cards work on PayPal as long as they are Visa, Mastercard, American Express, or Discover branded. However, some prepaid cards have restrictions or do not support online verification. If your prepaid card is declined, contact the card issuer to confirm it is enabled for online purchases.
What if I want to remove a credit card from my PayPal account?
Go to your Wallet, find the card you want to remove, and click or tap the three dots next to it. Select "Remove Card". The card is when ready deleted from your account. Any recurring payments set to that card will need to be updated to a different payment method.
Is it safe to link my credit card to PayPal?
PayPal uses encryption and fraud detection to protect your card information. Your full card number is not stored on PayPal's servers in a way that merchants can see it. However, linking any card to any service carries some risk. Use a strong, unique password for your PayPal account and enable two-factor authentication in your security settings.
Can I use a business credit card on PayPal?
Yes, PayPal accepts business credit cards the same way it accepts personal cards. Link it to your account using your business billing address. Be aware that business cards may have different cash advance policies or fraud protections than personal cards, so check with your card issuer about PayPal transactions.