You cannot transfer money directly from a credit card to PayPal as a cash transfer
PayPal does not accept direct transfers from credit cards into your PayPal balance the way it does from bank accounts. When you add a credit card to PayPal, that card becomes a payment method — a way to fund purchases or send money to others — but the money stays on your credit card until you actually spend it. If you need cash in your PayPal account itself, you will need to use a different route.
The confusion usually comes from mixing two separate things: adding a credit card as a payment source, and actually moving money into your PayPal balance. This guide walks through what is actually possible, what it costs, and which method makes sense depending on what you are trying to do.
Key Takeaways
- Adding a credit card to PayPal lets you pay with it, but does not move money into your PayPal balance — the card stays charged when you use it.
- To get cash into your PayPal balance from a credit card, you can use a cash advance (which charges fees and interest) or load money to a prepaid card first, then transfer it.
- The cheapest option is usually to transfer from a linked bank account instead, which is free and takes one to three business days.
- If you need the money for online purchases, adding the credit card directly to PayPal costs nothing and works when ready.
- PayPal does not let you transfer a credit card balance to your account the way some payment apps do.
What happens when you add a credit card to PayPal
When you link a credit card to your PayPal account, you are telling PayPal that card is available to use. When you make a purchase through PayPal or send money to someone, PayPal will charge that card at the moment of the transaction. The money does not move into your PayPal balance first — it goes directly from the card to whoever you are paying.
This is different from linking a bank account, where money can sit in your PayPal balance waiting to be used. With a credit card, there is no "holding" step. You add it, you use it, the card gets charged. This is why many people think they have transferred money when they have only added a payment method.
Using a credit card cash advance to fund PayPal
If you genuinely need cash in your PayPal balance and only have a credit card, a cash advance is technically possible but expensive. You would use your credit card at an ATM or bank to withdraw cash, then transfer that cash to your bank account, and finally transfer from your bank account to PayPal. This involves multiple fees and interest charges that start accruing when ready.
Credit card cash advances typically charge a fee of 3 to 5 percent of the amount withdrawn, plus a higher interest rate than regular purchases — often 20 to 30 percent annually. Interest starts the day you withdraw, with no grace period like you get on purchases. For example, a $500 cash advance might cost $15 to $25 in fees alone, plus interest if you do not pay it back within days. This route only makes sense if you have no other option and need the money urgently.
Loading a prepaid card, then transferring to PayPal
Some people load a prepaid card (like a Visa or Mastercard prepaid card) using their credit card, then link that prepaid card to PayPal. This works because prepaid cards function like bank accounts in PayPal's system. However, this adds a middle step and usually involves fees at each stage: a fee to load the prepaid card with your credit card, and possibly a fee to link it to PayPal depending on the card.
This method is slower and more expensive than other options, and it only makes sense if you already have a prepaid card and need to use a credit card for some reason. Most people in this situation are better off using the credit card directly in PayPal for purchases, or finding a way to transfer from a bank account instead.
Transferring from a bank account is usually the best option
If you have a bank account linked to PayPal, transferring money from that account to your PayPal balance is free and takes one to three business days. This is the standard way most people fund their PayPal balance. If you have a credit card but no bank account, opening a basic checking account at a bank or credit union is usually faster and cheaper than any credit card workaround.
Some banks offer accounts with no minimum balance and no monthly fee, which takes the friction out of this step. Once you have a bank account, you can transfer money to PayPal whenever you need it, and you avoid the interest and fees that come with credit card cash advances.
When you do not need to transfer money at all
Many people think they need to move money into PayPal when they actually just need to make a payment. If you are buying something online or sending money to a friend, you can add your credit card as a payment method and use it directly — no transfer needed. PayPal will charge the card at the moment you complete the transaction.
This is free, when ready, and works for any purchase or payment PayPal supports. The only time you actually need money sitting in your PayPal balance is if you plan to receive money from others (like payments for items you sold) and want to hold it there, or if you are using PayPal's debit card or cash-out features.
Fees and costs to know about
Adding a credit card to PayPal and using it for purchases costs nothing. Transferring from a linked bank account costs nothing. A credit card cash advance costs 3 to 5 percent in fees plus interest. Loading a prepaid card with a credit card usually costs 2 to 5 percent depending on the card and issuer.
If you receive money in PayPal and want to move it to your bank account, PayPal charges a standard transfer fee (currently $0.25 for transfers to a U.S. bank account, though this varies by country). when ready transfers to a debit card cost $0.25 to $1.50 depending on the amount. These fees explore to money leaving PayPal, not money going in.
Frequently Asked Questions
Can I transfer my credit card balance to PayPal?
No. PayPal does not offer balance transfers the way some payment apps do. You can add a credit card as a payment method and use it to pay others through PayPal, but you cannot move the card's balance into your PayPal account. If you need cash in PayPal, you must use a bank account transfer or a cash advance.
What is the difference between adding a credit card and transferring money?
Adding a credit card makes it available to use for payments — the money stays on the card until you spend it. Transferring money moves it into your PayPal balance, where it sits until you use it or withdraw it. PayPal does not let you transfer from a credit card, only from a bank account.
Does PayPal charge a fee to add a credit card?
No. Adding a credit card to PayPal is free. You only pay fees if you use a cash advance or load a prepaid card first. Using the credit card directly for purchases through PayPal also costs nothing.
How long does it take to transfer money from a bank account to PayPal?
Bank transfers to PayPal usually take one to three business days. The exact timing depends on your bank and PayPal's processing schedule. Transfers initiated on weekends or holidays may take longer.
Can I use a credit card to receive money in PayPal?
No. Credit cards can only be used to send money or make purchases through PayPal. To receive money, you need a bank account or PayPal Cash account linked to your profile. Once money arrives, you can withdraw it to a linked bank account or debit card.