Can I PayPal Someone With a Credit Card?

PayPal is a widely used online payment platform, facilitating digital transactions. Many users wonder if a credit card can be used to send money. It is possible to send funds through PayPal using a linked credit card, offering a convenient alternative to a bank account or PayPal balance.

Connecting a Credit Card to Your PayPal Account

Linking a credit card to your PayPal account is the first step to using it as a funding source. Log into your PayPal account and navigate to the “Wallet” or “Payment Methods” section.

Locate the option to “Link a debit or credit card.” Enter your card details, including the card number, expiration date, and the three or four-digit security code (CVV). If a billing address is not on file, provide it, ensuring it matches your credit card statement.

PayPal may initiate a small, temporary authorization charge, often around $1.95, to verify the card. This charge will appear on your credit card statement with a unique four-digit code. To complete verification, return to your PayPal Wallet, select the card, and enter this code. Once confirmed, the temporary charge is refunded. An unverified PayPal account can link up to 4 cards, while a verified account can link up to 24 cards.

How to Send Money with a Linked Credit Card

Once your credit card is linked, sending money is straightforward. Log into your PayPal account and select “Send & Request” or “Send Money.” Enter the recipient’s information, such as their email address, PayPal username, or mobile number.

Specify the amount and add a note if desired. Choose the payment type: “Friends and Family” or “Goods and Services.” Then, select your preferred funding source from the available options.

Your linked credit card will appear as an option alongside bank accounts or your PayPal balance. Choose the credit card for the transaction. Review all details, including the amount, recipient, and funding source, before confirming. Funds are typically transferred immediately.

Understanding Fees and Transaction Limits

Using a credit card to send money via PayPal, particularly for personal payments to friends and family, incurs a fee. When sending domestic personal payments with a credit card, PayPal charges a percentage of the transaction amount, around 2.9%, plus a fixed fee of $0.30 USD. For example, sending $100 with a credit card might result in a fee of $2.90 plus $0.30, totaling $3.20. This fee is paid by the sender.

In contrast, if you are paying for goods or services, the seller pays the transaction fees, and there is no fee for the buyer when using a credit card for purchases in USD. Standard fees for receiving payments for goods and services are around 2.99% plus a fixed fee of $0.49 USD. International transactions may involve additional fees, including a percentage-based international fee and currency conversion charges.

PayPal also imposes various transaction limits, which can vary based on your account status and verification level. For unverified accounts, sending limits are considerably lower, often capped at around $4,000 per single transaction, or even lower, such as $500 per month in some cases. Verifying your account significantly increases these limits.

Verified accounts can typically send up to $60,000 per transaction, although PayPal may limit this to $10,000 in certain instances for security reasons. There is generally no cumulative sending limit for verified accounts. To check your specific sending and receiving limits, you can navigate to the “Settings” or “Account Information” section within your PayPal account.