How to Add Gift Card Money to PayPal

Many individuals use PayPal to manage gift card funds or expand spending options. Understanding gift card compatibility with PayPal’s system is an important first step to leveraging their value for online transactions.

Understanding Gift Card Compatibility with PayPal

Not all gift cards are compatible with PayPal. Most store-specific gift cards, often referred to as “closed-loop” cards, are generally not accepted as a direct payment method or for adding funds to a PayPal balance. These cards are designed for exclusive use at the issuing merchant or affiliated businesses. Their underlying infrastructure does not connect to the broader financial networks.

In contrast, general-purpose gift cards, which bear the logos of major payment networks like Visa, Mastercard, American Express, or Discover, function differently. These “open-loop” cards are widely accepted by PayPal because they operate much like standard debit or credit cards. Their balance is not directly transferred into your PayPal account’s main balance; instead, they serve as a funding source from which payments are drawn directly at the time of a transaction.

Linking General-Purpose Gift Cards to Your PayPal Account

To use a general-purpose gift card with PayPal, you must first link it to your account as a payment method. This process is straightforward and can be completed through PayPal’s website or mobile application. After logging into your PayPal account, navigate to the “Wallet” or “Cards” section, which serves as the central hub for managing your financial instruments.

Within the Wallet section, locate and select the option to “Link a debit or credit card.” You will then be prompted to manually enter the gift card’s details. This includes the full card number, the expiration date, and the three or four-digit security code (CVV) typically found on the back of the card.

A critical step involves entering the correct billing address associated with the gift card. If the gift card does not have a specific address registered, you should generally use your own billing address that is on file with PayPal. Some gift cards may require prior activation or registration on the issuer’s website, often including an address, before they can be successfully linked.

Using Linked Gift Cards for PayPal Transactions

Once your general-purpose gift card has been successfully linked to your PayPal account, you can readily use it to make payments for online purchases. During the checkout process on a website that accepts PayPal, you will select PayPal as your payment method. When presented with the various funding sources available in your PayPal account, the newly linked gift card will appear as an option alongside any other credit cards, debit cards, or bank accounts you may have.

This functionality allows you to utilize the gift card’s value for a wide array of goods and services online, much like any other payment card. However, general-purpose gift cards linked to PayPal cannot be used for recurring payments due to their finite and non-reloadable nature.