Can You Add a Gift Card to Your PayPal Account?

This article explains how to use gift cards with PayPal, addressing common questions about linking them or adding balances. Gift card balances cannot be directly added to a PayPal account’s overall balance. Instead, how a gift card interacts with PayPal depends on its type.

Understanding Gift Card Integration

Gift cards are generally categorized into “open-loop” and “closed-loop” forms. Open-loop gift cards, such as those issued by Visa, Mastercard, American Express, or Discover, function similarly to standard debit or credit cards. These cards can often be linked to a PayPal account as a payment method. They are widely accepted wherever their respective payment network is supported, offering broad flexibility. Before linking, check the card’s terms and conditions and register it with the issuer, often requiring a billing address for online verification.

In contrast, closed-loop gift cards are merchant-specific, meaning they can only be used at a particular retailer or a designated group of stores. Examples include gift cards for specific brands like Amazon or Starbucks. These types of gift cards cannot be linked to a PayPal account. They are designed for use directly with the issuing merchant, limiting their interoperability with third-party payment platforms like PayPal.

Linking Eligible Gift Cards

Linking an eligible open-loop gift card to your PayPal account allows you to use its balance for online transactions. This process is straightforward and mirrors adding a regular debit or credit card. Ensure the gift card is activated and has sufficient funds for any small verification charges PayPal might initiate.

To begin, log into your PayPal account through the website or mobile application and navigate to the “Wallet” section. Within the Wallet, select “Link a card or bank” or “Link a debit or credit card.” You will then be prompted to manually enter the gift card details, including the 16-digit card number, expiration date, and the three-digit CVV security code.

The billing address is a key step. For successful linking, the billing address entered in PayPal must precisely match the address registered with the gift card issuer. If an address was not previously registered, it is often possible to use your home address. After confirming all details, complete the process by selecting “Link Card.” If an error occurs, common issues include an unregistered card, insufficient balance, or a mismatch in the billing address.

Using Other Gift Cards for Purchases

Even if a gift card cannot be linked directly to PayPal, alternative methods exist for utilizing its value in online transactions. Closed-loop gift cards, which are restricted to specific merchants, are used directly with that merchant’s own payment system. For instance, a gift card for a clothing retailer would be applied during checkout on that retailer’s website, regardless of whether PayPal is also an available payment option.

Open-loop gift cards, despite their eligibility for linking to PayPal, can also be used directly at any merchant that accepts the card’s network, such as Visa or Mastercard. This allows consumers to use their gift card funds without involving PayPal, providing flexibility for purchases where direct card use is preferred or more convenient. When making a purchase, these cards are treated like any other credit or debit card during the checkout process.

With some online retailers, it may be possible to combine a gift card with another payment method for a single purchase. This “split payment” functionality allows a portion of the purchase to be covered by the gift card balance, with the remainder paid using a linked PayPal account or another card. The availability of split payments depends on the specific merchant’s policies and checkout system, so check their terms before attempting such a transaction.