How to Transfer Money from PayPal to Credit Card Instantly

By Jim Marous 15 Min Read

Unfortunately, you can’t transfer money from PayPal to credit card instantly or by any means at all. Moreover, credit cards are not designed to take in funds like bank-issued debit cards. My findings show that you can’t with a US PayPal, not even with a UK PayPal account. However, there have been some reports of a possibility by some account owners—but only too few stories.

So, let’s just say that direct transfers to credit cards are not possible. In this article, I highlight the possible method to move your funds from PayPal to your credit card, and other information you might find helpful.

Can I transfer money from PayPal to a credit card?

How to transfer money from paypal to credit card instantly

In the US, you can’t transfer money directly from PayPal to a credit card, that is not supported at least for now. You can only do so with your debit card. PayPal primarily allows users to withdraw funds to a linked bank account or a debit card only. And there’s a good reason for this.

While credit cards are commonly used for online payments, they function differently than debit cards or bank accounts, especially when it comes to receiving payments.

Inquiries, with PayPal representatives, also clarified that the platform doesn’t facilitate direct transfers to credit cards. However, they did confirm that PayPal provides alternative methods to access funds, such as withdrawing to a linked bank account or using a PayPal Cash Card linked to a debit card.

Exploring the UK PayPal perspective

While the situation differs in the United Kingdom PayPal, where some users have reported successful transfers from PayPal to credit cards in the past, note that this may no longer be the case.

A Reddit post from the UK Frugal community highlights a user’s experience with PayPal-to-credit-card transfers but cautions that the effectiveness and advisability of such transactions may have changed over time due to fluctuations and evolving PayPal policies. Therefore, users should stay informed about the current guidelines and regulations governing PayPal transactions in their region and other regions where possible.

How to transfer money from PayPal to credit card instantly

Even with the limitations in place, if you’re still eager to harness the power of your PayPal funds with a credit card, then there’s a possible workaround worth exploring—Bank account transfers.

The idea is to use bank account transfers to indirectly access your PayPal funds with your credit card. It may not work but give it a try. Let’s walk through the step-by-step guide to transfer money from PayPal to credit card instantly:

First, ensure that your bank account is linked to your PayPal account. This connection will allow for seamless transfers between PayPal and your bank.

2. Transfer funds to bank account

Within your PayPal account, navigate to the Withdraw or Transfer section. Select your linked bank account as the destination and enter the amount you wish to transfer from your PayPal balance to your bank account. Confirm the transfer and patiently wait for the transaction to complete.

3. Leverage your credit card

Once the funds have successfully landed in your bank account, it’s time to unleash the power of your credit card. Use your credit card for purchases, payments, or even cash withdrawals, depending on your credit card’s features and limits.

4. Enjoy the Indirect Transfer

By transferring your PayPal funds to your bank account, you’ve indirectly accessed them with your credit card. Now, you can make the most of your credit card’s benefits while still utilizing your PayPal funds for your financial needs.

Give this a try to transfer money from PayPal to credit card instantly.

Can I use a Credit card with PayPal?

Although you can’t directly transfer funds from PayPal to a credit card, using a credit card on PayPal for online transactions is still a viable option.

When you link your credit card to PayPal, you gain the convenience and security of making purchases and payments online. Your credit card details are kept safe, as PayPal handles the transaction process without sharing your information with the merchant.

Here’s a quick guide on how to add a credit card to PayPal, covering both the website and the PayPal app:

1. Sign in to your PayPal account

Open the PayPal website or launch the PayPal app on your device.

Enter your login credentials to sign in to your PayPal account.

2. Access your account settings

On the PayPal website, click on the gear icon located at the top-right corner of the page to access your account settings.

In the PayPal app, tap on the menu icon (usually three horizontal lines) and select “Settings” or a similar option.

3. Navigate to the “Wallet” or “Payment Methods” section

In the account settings, look for the “Wallet” or “Payment Methods” section. Click or tap on it to proceed.

4. Add a credit card

Look for the option to add a new payment method. It may be labeled as “Link a card” or “Add a card.”

Click or tap on this option to begin the process of adding your credit card.

5. Enter your credit card details

You’ll be prompted to enter your credit card information, including the card number, expiration date, security code, and billing address.

Carefully fill in the required fields with accurate information. Double-check the details for accuracy before proceeding.

6. Confirm and save your credit card

Review the information you entered to ensure it is correct.

Click or tap on the “Save” or “Link Card” button to add your credit card to your PayPal account.

7. Verify your credit card (if required)

Depending on your credit card issuer and PayPal’s verification process, you may need to confirm your ownership of the card.

Follow the instructions provided by PayPal to complete the verification process, which may involve confirming a small transaction or providing additional information.

Will I earn credit card points?

Yes, you will earn credit card points when you use your credit card on PayPal for online transactions.

However, it’s important to note that earning credit card points will depend on the specific rewards program offered by your credit card issuer. This is because different credit cards have varying reward structures, such as earning a certain number of points per dollar spent or receiving cashback on eligible purchases.

For instance, let’s say you have a credit card that offers 2% cashback on all online transactions. If you use that credit card to make a purchase through PayPal, you could earn 2% cashback on the total amount spent, which can add up over time.

So, by utilizing your credit card on PayPal, you have the potential to earn rewards and maximize the benefits of your chosen credit card’s rewards program.

Should you use a credit card on PayPal?

When it comes to using a credit card on PayPal, there are a few things to consider before making a decision. Consider these:

  1. Crunching PayPal fees

Before you go ahead and whip out your credit card on PayPal, let’s talk about those sneaky fees that can catch you off guard.

In the USA, PayPal charges a 2.9% fee plus a fixed $0.30 for using a credit card for domestic purchases. So, let’s say you’re splurging on a $100 gadget online – you’d be looking at a fee of $3.20. Those fees can add up pretty quickly, especially if you’re making frequent transactions.

Now, let’s cross the pond to the UK. Domestic personal transactions within the UK, including the Isle of Man, are free – which is fantastic news.

But if you’re venturing into international territory, PayPal slaps on a 5% fee of the transaction amount. Picture this: you’re treating yourself to a fancy handbag worth £200 from an overseas seller. Brace yourself, because that’s a fee of £10. ‘Ouch!’

So, be aware of these fees and factor them into your budget. They may seem small, but they can quickly eat into your hard-earned cash.

This is why you need to take a moment to consider if the convenience of using your credit card on PayPal outweighs these fees and make sure you’re comfortable with the costs before clicking that “Buy Now” button.

  1. Rewards points

One of the perks of using a credit card is earning those sweet rewards points.

Let’s say you’re eyeing a fancy new gadget worth $500, and you decide to use your credit card on PayPal to make the purchase. Not only will you get your hands on the latest tech, but you’ll also earn a bunch of points along the way. Those points can be redeemed for all sorts of goodies like gift cards, travel perks, or even cashback. It’s like getting a little extra something just for using your credit card on PayPal.

So, check if your credit card’s rewards program covers PayPal transactions. If it does, you could be racking up points with every purchase, bringing you closer to that dream reward.

  1. Cash advances

Some credit card companies might consider PayPal payments as cash advances. Here’s why.

Recently, some card issuers have updated their terms and conditions to mention that person-to-person money transfers could be categorized as cash advances. That means you might get hit with additional fees on top of your regular transaction. These cash advance fees can be pretty hefty, usually ranging from 3% to 5% of the transaction amount.

But here’s the good news – not all credit card users will face this issue. It varies from card to card, so it’s essential to dig into your card’s terms and conditions or give your card issuer a quick call to find out if PayPal transactions will be treated as cash advances for your specific card.

This way, you can steer clear of any unexpected extra fees and keep your hard-earned money where it belongs – in your pocket. So, make sure you understand how your credit card company treats PayPal transactions to avoid any unpleasant surprises.

Why is my PayPal account not accepting my credit card?

First, make sure you’ve entered the correct card details, including the card number, expiration date, security code, and billing address. Even a small mistake can cause the card to be declined.

Secondly, you need to check if your credit card is compatible with PayPal, as not all cards are supported. Lastly, PayPal has security measures in place, so if your card hasn’t been verified or if there are security concerns, it may not be accepted.

Can I send money to someone from my credit card through PayPal?

Yes, you can send money to someone from your credit card through PayPal. Just link your credit card to your PayPal account and choose it as the payment source when sending money. Keep in mind that there may be fees associated with using your credit card on PayPal, such as transaction fees or cash advance fees.

Linking a credit card to PayPal provides added convenience and flexibility. It allows you to use your credit card for PayPal transactions, making purchases, subscriptions, and payments more convenient. It also provides you with more options when it comes to managing your finances, giving you the choice between using your credit card or your PayPal balance for transactions.

Final Thoughts

While you can’t send money from PayPal to a credit card instantly, there are alternatives available as explained in this article. Just link your bank account to PayPal to indirectly access your funds with your credit card. Although it involves an extra step, this method provides convenience and flexibility in managing your finances.

Plus, when it comes to online shopping and payments, PayPal’s got your back. Just link your credit card to your PayPal account, and you’re good to go.

Enjoy the convenience, security, and rewards of using your credit card with PayPal. Just make sure to check any potential fees associated with your credit card and stay informed about PayPal’s policies while you’re at it.

Read also: trick to fund bank account with PayPal credit

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Jim Marous is a Top 5 Retail Banking Influencer, Global Speaker, Podcast Host and Co-Publisher at The Financial Brand. I am a co-author here at Finance and Pay, writing on a lot of topics regarding payments, banking software, cards, and investing.
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