Can I Pay My PayPal Bill With A Credit Card?

PayPal has become one of the most popular online payment methods for individuals and businesses alike. With over 400 million active accounts worldwide PayPal processes billions of dollars in payments each year. One common question many PayPal users have is whether they can pay their PayPal bill or balance using a credit card. The short answer is yes you can pay your PayPal bill with a credit card under certain conditions.

How To Pay Your PayPal Bill With A Credit Card

Here are the steps to pay your PayPal bill or balance using a credit card:

• Log into your PayPal account.
• Click on the “Wallet” or “Balance” section.
• Look for the “Add Funds” or “Transfer Funds” option.
• Choose your credit card as the payment method.
• Enter the amount you wish to transfer from your credit card to PayPal.
• Complete the transaction.

The funds from your credit card should now be added to your PayPal balance. You can then use this balance to pay your PayPal bills, send money, make purchases and more.

Important Things To Know

While paying your PayPal bill with a credit card is possible, there are some important caveats:

• Not All Credit Cards Accepted – PayPal may not accept all types of credit cards. Typically Visa, MasterCard, American Express and Discover cards are accepted.

• Credit Card Cash Advance – When you pay your PayPal bill with a credit card, it may count as a cash advance rather than a purchase. Cash advances typically have higher interest rates.

• Cash Advance Fees – Your credit card issuer may charge a cash advance fee for adding funds to PayPal usually around 3-5% of the transaction amount.

• Cash Advance Limits – Most credit cards have cash advance limits, so you may not be able to transfer large amounts to PayPal using this method.

• PayPal Fees – PayPal charges a fee for adding funds from a credit card, which is 2.9% plus a fixed fee based on the currency used.

• PayPal Account Limitations – Some PayPal account types may not allow adding funds via credit card. Be sure to check your account capabilities.

• Credit Utilization – Using your credit card to pay PayPal bills increases your credit utilization ratio, which can negatively impact your credit score if too high.

• Interest Charges – Any balance transferred to PayPal and not paid off by the grace period on your credit card will begin accruing interest charges.

When To Pay PayPal With A Credit Card

Given the potential fees and costs involved, in most cases it makes sense to pay your PayPal balance using linked bank accounts, debit cards or PayPal balance. However, there are some situations where using a credit card to pay PayPal can be beneficial:

• Earning Rewards – If your credit card offers generous rewards on purchases, you can earn additional points/miles by paying PayPal.

• Special Financing Promotions – Some credit cards offer 0% APR promotions on balance transfers or purchases. This allows you to pay off your PayPal balance over time without interest.

• Meeting Minimum Spend – If you need to meet a minimum spend requirement for a new credit card welcome bonus, paying your PayPal bill can help achieve the target.

• Emergency Funds – In urgent situations where linked bank accounts have insufficient funds, a credit card cash advance to PayPal can provide access to emergency money quickly.

• Business Expenses – Businesses can use a credit card to pay PayPal bills while keeping expenses separate from bank accounts.

• High Credit Limits – Those with very high credit limits can pay large PayPal bills with a credit card without bumping up against cash advance limits.

Steps To Minimize Fees

If you do decide to pay PayPal with a credit card, here are some tips to reduce fees:

• Use a credit card with no foreign transaction fee to avoid the extra charges when sending international payments via PayPal.

• Consider opening a new credit card with an intro 0% APR period so you can pay over time without interest.

• Pay off the balance transfer as quickly as possible to avoid interest charges down the road.

• Review your credit card’s cash advance terms – some issuers charge lower fees than others.

• Compare the fees charged by PayPal for balance transfers/purchases and go with the lower cost option.

• Only transfer the exact amount you need to pay your PayPal balance and bills to minimize fees.

Alternatives To Credit Cards

In many situations, it will be better to avoid credit card cash advances and instead fund your PayPal account through:

• Bank Account Transfers – Linking a bank account allows you to transfer funds into PayPal directly from your checking or savings account. Transfers are free and take 3-5 days.

• PayPal Balance – If you have funds available in your current PayPal balance, you can use it pay down your bill without fees.

• Debit Card – PayPal lets you add money by making purchases with debit cards, with no cash advance fees.

• PayPal Cash/Cash Plus Account – You can apply for these special PayPal debit/prepaid cards to use for purchases and transfers.

• PayPal Money Pools – Set up a money pool to let friends, family or customers pay your PayPal balance directly.

• PayPal Key – Generates virtual and physical card numbers you can use to pay your PayPal bill like any other purchase.

The Bottom Line

Paying your PayPal balance with a credit card is possible, but also comes with additional fees, costs and potential impacts to your finances. In most cases, it is better to use direct bank account transfers or your PayPal funds to manage your PayPal account balance. But for some situations like earning rewards or leveraging promotional financing offers, credit cards can be a helpful option – just be aware of the drawbacks. With a bit of planning, you can pay your PayPal bill efficiently while minimizing interest and fees.