Yes, you can use a credit card on PayPal, but how it works depends on what you're trying to do

You can link a credit card to your PayPal account and use it to send money, pay for purchases online, or fund transfers. PayPal accepts most major credit cards — Visa, Mastercard, American Express, and Discover — from cardholders in the United States and many other countries. However, PayPal treats credit card payments differently depending on whether you're sending money to another person, paying a business, or withdrawing funds. Some uses cost you a fee; others don't.

The most important thing to know upfront: if you link a credit card to PayPal and use it to send money to friends or family, PayPal charges you a fee. If you use it to pay a business for goods or services, there is usually no fee to you (the business pays PayPal instead). If you try to withdraw money from PayPal to your credit card, that also costs money.

Key Takeaways

  • You can link any major credit card to PayPal by entering the card number, expiration date, and CVV in your account settings.
  • Sending money to friends or family using a credit card costs 2.2% of the amount plus $0.30, so a $100 transfer costs $2.50.
  • Paying a business with a linked credit card usually has no fee to you, because the merchant pays PayPal's processing cost instead.
  • You cannot withdraw money directly from PayPal to a credit card; you can only withdraw to a bank account or debit card.
  • PayPal may ask you to confirm your card by entering a small deposit amount or a code sent to your email before you can use it.

How to link a credit card to your PayPal account

Log into your PayPal account on a computer or the PayPal app. Go to Wallet (on the app, tap the wallet icon at the bottom). Click or tap Link a card. Enter your card number, expiration date, CVV (the three-digit code on the back), and the billing zip code. PayPal will ask for your name and billing address if it doesn't already have them.

PayPal may verify the card by sending a code to your email or by making a small temporary charge to the card and asking you to enter the amount. This usually takes a few minutes. Once verified, the card appears in your Wallet and you can use it immediately. You can link multiple cards to the same PayPal account.

Sending money to friends or family with a credit card

When you send money to another person using a linked credit card, PayPal charges you a fee of 2.2% of the amount plus $0.30. This means a $100 transfer costs $2.50 out of your pocket. A $50 transfer costs $1.40. The person receiving the money gets the full amount you sent — the fee comes from you, not them.

This fee applies only when you use a credit card. If you link a bank account or debit card instead, sending money to friends and family is free (within the United States). Because of this fee, most people use a bank account or debit card for personal transfers and reserve the credit card for other uses.

Paying businesses and online merchants

When you use a linked credit card to pay a business through PayPal — whether you're buying something online or paying an invoice — there is no fee to you. PayPal charges the merchant a processing fee instead, which is built into their pricing. From your perspective, the transaction is free.

This is one of the most common ways people use credit cards on PayPal. You can check out at thousands of online stores using PayPal as your payment method, and your credit card will be charged without any additional cost to you. The merchant sees the payment as coming from PayPal, not directly from your card.

Withdrawing money from PayPal to a credit card

You cannot transfer money from your PayPal balance directly to a credit card. PayPal only allows withdrawals to a bank account or debit card. If you want to move money out of PayPal, you must link a bank account or debit card and withdraw to one of those instead.

The reason for this restriction is that credit cards are for borrowing money, not receiving it. A credit card company cannot deposit funds into your card the way a bank account can. If you need to move PayPal funds somewhere, link your checking account or a debit card to your PayPal account and withdraw there.

Fees and costs you should know about

The fee structure for credit cards on PayPal breaks down like this: sending money to a person costs 2.2% plus $0.30; paying a business costs nothing to you; withdrawing to a credit card is not possible. There are no monthly fees for linking a card or keeping it on file.

If you use PayPal's credit card (the PayPal Cashback Mastercard), you can link it to your PayPal account like any other card. Rewards and cash back from that card are separate from PayPal's transaction fees — you earn rewards on purchases, but you still pay PayPal's fee if you use it to send money to friends.

Security and what happens if your card is compromised

PayPal encrypts your card information and does not store the full card number on their servers. When you make a purchase, the merchant does not see your actual card number — they see only that PayPal processed the payment. This adds a layer of protection between your card and the seller.

If your card is lost, stolen, or used fraudulently, contact your credit card company first. They handle fraud claims and can cancel the card. You can also remove the card from your PayPal account immediately by going to Wallet, finding the card, and clicking Remove. PayPal will not charge the card once it is removed from your account.

Frequently Asked Questions

Can I use a credit card to withdraw money from PayPal?

No. PayPal only allows withdrawals to a bank account or debit card. If you need to move money out of PayPal, you must link one of those instead. Credit cards cannot receive deposits.

Will using a credit card on PayPal hurt my credit score?

Using a credit card on PayPal works the same as using it anywhere else. The transaction shows up on your credit card statement, and your card issuer reports the charge to credit bureaus like any other purchase. It does not affect your credit score differently than a regular purchase would.

What if PayPal declines my credit card?

PayPal may decline a card if the billing address doesn't match, the card is expired, or the card issuer is blocking the transaction. Check that your address and card details are correct in your Wallet. If the problem continues, contact your credit card company — they may have flagged PayPal transactions as suspicious and need to approve them.

Can I use a credit card from another country on PayPal?

PayPal accepts credit cards issued in most countries, but availability depends on your PayPal account location and the card issuer's policies. If you live in the United States, you can usually link cards issued by U.S. banks. If you live elsewhere, check PayPal's website for your country's accepted card types, or contact PayPal directly.