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Can You Add Money to PayPal with a Credit Card?
July 1, 2025
Quick Answer
While you cannot directly add funds to your PayPal balance with a credit card, you can use a linked card as the funding source for purchases and money transfers.
Should You Add Money To Paypal With A Credit Card?
Let's weigh the advantages and disadvantages of this funding method.
Benefits
- Earn Rewards: You may earn credit card rewards like points, miles, or cash back on the transaction.
- Convenience: Adding funds is quick and allows for immediate use within your PayPal account.
- Purchase Protection: Your credit card issuer may offer additional fraud and purchase protection on top of PayPal's.
Costs
- PayPal Fees: PayPal charges a fee for adding money from a credit card.
- Cash Advance Fees: Most credit card issuers treat this transaction as a cash advance, which incurs a separate, often high, fee.
- Immediate Interest: Cash advances typically do not have a grace period, meaning interest starts accruing on the amount immediately at a high APR.
- No Rewards: Many credit card programs do not offer rewards on transactions classified as cash advances, negating a key benefit.
How to Add Money To Paypal With A Credit Card
Using a credit card is a straightforward way to fund your PayPal transactions for online purchases or sending money. Here’s a general guide to help you navigate the process.
- Log In and Access Your Wallet: Sign in to your PayPal account via the website or mobile app. Navigate to the "Wallet" section, which is the central hub for managing your payment methods.
- Link Your Credit Card: If you haven't done so already, select the option to "Link a debit or credit card." You will need to provide your card number, expiration date, and security code to add it to your account.
- Choose the Right Card: Selecting the best card for PayPal transactions can help you maximize rewards. To find a card that aligns with your spending habits, you can use a dedicated explore cards tool to compare options.
- Select Card as Funding Source: When you make a purchase or send money, PayPal allows you to choose your funding source. Simply select your preferred credit card at the time of the transaction.
- Be Aware of Fees: While paying for goods and services is generally free, be aware that sending personal payments to friends or family using a credit card typically incurs a transaction fee from PayPal.
Impact On Your Credit Score
Using a credit card to add funds to your PayPal account can affect your credit score in several ways. Here are a few key factors to consider before you do so.
- Credit Utilization. This transaction increases your credit card balance, which can raise your credit utilization ratio. A higher ratio may negatively affect your credit score, as it suggests greater financial risk to lenders.
- Cash Advance Classification. Your credit card issuer might treat this as a cash advance, not a standard purchase. Cash advances often come with higher fees and interest rates, potentially increasing your debt faster.
- Payment History. Like any credit card charge, you must repay the amount added to PayPal. Making on-time payments can help your score, but failing to do so will have a negative impact.
Alternative Ways To Add Money To Paypal
Direct Bank Transfer
One of the most common alternatives is transferring funds directly from a linked bank account. This electronic funds transfer (EFT) moves money from your checking or savings account into your PayPal balance. It's a secure and widely used method that completely bypasses the need for a credit card, relying instead on the established banking network to process the transaction.
In-Person Cash Deposits
For users who prefer physical cash or don't wish to link a bank account, adding money at a retail store is a viable option. Using the PayPal app, you can generate a unique barcode that a cashier at a participating store can scan. You then hand over the cash, and the funds are deposited into your PayPal account, typically for a small service fee.
Choose the Right Card to Add Money To Paypal
When you add money to your PayPal account, using the right credit card can make a big difference, earning you valuable rewards or cash back. With thousands of cards on the market, each with its own perks and fees, picking the perfect one can feel like a monumental task. Kudos simplifies this process, helping you explore the best credit cards to match your specific spending habits and financial goals, ensuring you get the most out of every transaction.
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Frequently Asked Questions
Are there fees for adding money to PayPal with a credit card?
Yes, PayPal typically charges a fee for adding money from a credit card, usually a percentage of the total amount.
How long does it take for the money to appear in my account?
Funds added from a credit card are usually available in your PayPal balance almost instantly after a successful transaction.
Is it safe to link my credit card to PayPal?
Yes, PayPal uses advanced encryption and security measures to protect your financial information when you link your credit card.
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
