Can You Put Gift Cards on a PayPal Account?

PayPal is a widely used online payment platform. Gift cards are a common and convenient form of payment. This guide explores how gift cards can integrate with your PayPal account.

Adding General-Purpose Gift Cards to PayPal

Open-loop gift cards, such as those from Visa or Mastercard, function similarly to debit or credit cards. These cards can be linked directly to a PayPal account. Before adding the card, register it with the issuer online by assigning a billing address. This step helps ensure successful verification for online transactions.

To link a general-purpose gift card, log into your PayPal account and navigate to the “Wallet” or “Banks and Cards” section. Select “Link a debit or credit card.” Enter the gift card number, expiration date, and CVV security code. For the billing address, use the address you registered with the gift card issuer.

PayPal may initiate a small charge to verify the card’s validity, which is typically refunded. This verification process confirms the card is active. Once linked, the gift card appears as an available payment method within your PayPal wallet.

Using General-Purpose Gift Cards for Purchases

Once a general-purpose gift card is linked to your PayPal account, it can be selected as a payment method for online transactions. When making a purchase, choose PayPal at checkout, then select the linked gift card from your funding sources.

PayPal deducts the purchase amount directly from the gift card’s balance. If a transaction exceeds the available balance on the gift card, PayPal allows for a split payment. You would need another linked funding source to cover the remaining balance. This ensures that the entire value of the gift card can be utilized, even for larger purchases.

Using a linked gift card through PayPal offers a seamless checkout experience, eliminating the need to manually enter card details. This method also helps to use up small residual balances on gift cards. The flexibility provided by PayPal allows for efficient management of prepaid funds across numerous online platforms that accept PayPal.

Understanding Limitations with Store-Specific Gift Cards

Store-specific gift cards, also known as closed-loop gift cards, cannot be directly added or used as a payment method on a PayPal account. These cards are designed for exclusive use within that specific store or brand network. They lack the universal payment network logos that PayPal’s system requires for processing.

PayPal’s payment infrastructure processes transactions from open-loop cards or a user’s PayPal balance. Store-specific gift cards are proprietary store credit. Attempting to link a store-specific gift card to your PayPal wallet will result in an error.

While you cannot integrate these cards into your PayPal account for payments, you can use them at the merchant’s website if they accept PayPal. The gift card is used directly with the merchant, not through your PayPal wallet.