Can I Put a Gift Card on My PayPal Account?

PayPal functions as a widely used digital payment platform, enabling individuals and businesses to conduct transactions securely online. Gift cards remain a popular and convenient method for giving and receiving value in everyday transactions. Many people inquire about integrating these two financial tools, specifically whether gift cards can be directly added to their PayPal accounts for online spending.

Understanding Gift Card Compatibility with PayPal

The ability to use a gift card with PayPal largely depends on the type of gift card. There are two primary categories of gift cards: open-loop and closed-loop. Open-loop gift cards are issued by major payment networks such as Visa, Mastercard, American Express, or Discover. These cards operate much like traditional debit or credit cards and are accepted wherever the respective network’s cards are honored.

Conversely, closed-loop gift cards are issued by specific retailers or merchants, such as a particular clothing store or coffee shop. These cards are only redeemable at the issuing merchant, whether online or in their physical stores. Due to their restricted functionality and lack of integration with general payment networks, closed-loop gift cards cannot be directly added to or used with a PayPal account.

Adding General-Purpose Gift Cards to PayPal

General-purpose gift cards, such as those from Visa, Mastercard, American Express, or Discover, can be linked to a PayPal account. The process is similar to adding a standard debit or credit card. Log into your PayPal account and navigate to the “Wallet” section.

From the “Wallet,” select “Link a card or bank,” then choose “debit or credit card.” Enter the gift card’s details: the 16-digit card number, expiration date, and security code (CVV). Ensure the gift card has a billing address registered with its issuer. This registered address must precisely match the billing address associated with your PayPal account for successful linking.

After entering the details and confirming the addresses, complete the card addition. Once linked, the general-purpose gift card will appear as a payment option in your PayPal wallet. You can then select it as a funding source for online purchases or for sending money through PayPal, as long as the transaction amount does not exceed the card’s balance.

Using Store-Specific Gift Cards

Store-specific gift cards, or closed-loop cards, cannot be added as a payment method to a PayPal account. These cards lack the network integration required by third-party payment platforms. Their use is limited to direct purchases with the issuing retailer or merchant, whether online or in physical stores.