You can change your PayPal payment method from your bank account to a credit card in your account settings
PayPal stores multiple payment methods — bank accounts, debit cards, and credit cards — and lets you choose which one to use for each transaction. If you have already linked a credit card to your PayPal account, you can select it at checkout instead of your bank account. If you have not linked a credit card yet, you will need to add one first, then set it as your preferred payment method or choose it manually when you pay.
The process takes a few minutes and does not require you to remove your bank account. Both payment methods can stay linked to your account at the same time — you straightforward decide which one to use each time you make a purchase or send money.
Key Takeaways
- You can add a credit card to PayPal by going to your Wallet, selecting "Link a card", and entering your card details.
- At checkout, you can choose which payment method to use by clicking the payment method dropdown before you confirm the transaction.
- You can set a credit card as your default payment method in your account settings so PayPal uses it automatically unless you change it.
- Using a credit card on PayPal may earn you rewards points or cash back, depending on your card's benefits.
How to add a credit card to your PayPal account
Log into your PayPal account on the website or in the mobile app. On the website, click the gear icon in the top right corner and select "Wallet" from the menu. In the app, tap the menu icon (three horizontal lines) and go to "Wallet".
Once you are in your Wallet, look for a button that says "Link a card" or "Add a card". Click or tap it, then enter your credit card number, expiration date, CVV (the three-digit security code on the back), and the billing address associated with the card. PayPal will ask you to confirm the card by charging a small amount (usually a few cents) to it, then asking you to enter that amount back into PayPal to verify you own the card. This verification step protects your account and takes one to two business days.
How to choose your credit card at checkout
When you are ready to pay for something on PayPal or through a merchant that accepts PayPal, you will see a payment method selection screen before you confirm your purchase. This screen shows all the payment methods linked to your account — your bank account, debit cards, and credit cards.
Click or tap on the credit card you want to use. A checkmark or highlight will appear next to it, showing it is selected. Then complete the rest of the checkout process as normal. Your credit card will be charged instead of your bank account.
If you do not see a payment method dropdown at checkout, look for text that says "Change" or "Edit" next to the current payment method. Clicking that will open the selection screen.
How to set a credit card as your default payment method
If you want PayPal to use your credit card automatically without asking you to choose each time, you can set it as your default. Go to your Wallet (using the steps above), find the credit card you want to use by default, and look for a menu icon (three dots) or "Set as default" button next to it.
Click or tap that option and confirm. From that point forward, PayPal will use that credit card for all transactions unless you manually change it at checkout. You can change your default payment method at any time by following the same steps and selecting a different card.
Keep in mind that some merchants or payment types may override your default — for example, if you are paying a bill to a company that only accepts bank transfers, PayPal may not let you use a credit card even if it is your default method.
Why you might want to use a credit card instead of your bank account
Credit cards often come with rewards programs that give you cash back, points, or miles on every purchase. If your credit card offers 1% to 5% cash back depending on the category, using it on PayPal means you earn rewards on those transactions instead of earning nothing by paying from your bank account.
Credit cards also offer fraud protection that is often stronger than bank account protection. If someone makes an unauthorized charge to your credit card, you can dispute it and the card issuer will typically reverse it while they investigate. Bank account fraud can take longer to resolve and may leave you without access to your money during the investigation.
Using a credit card also keeps your bank account number out of PayPal's system, which reduces the risk if PayPal's data is ever compromised. Your bank account is a direct line to your money, while a credit card is a line of credit that you can dispute or cancel without affecting your actual bank account.
What happens if your credit card is declined on PayPal
If PayPal tries to charge your credit card and it is declined, you will see an error message at checkout. The transaction will not go through. Common reasons for a decline include the card being expired, the card being reported lost or stolen, the card issuer blocking the transaction for fraud prevention, or you reaching your credit limit.
Check that your card details in PayPal match exactly what your card issuer has on file — the name, address, and card number must be correct. If they are correct and the card is not expired, contact your credit card issuer to ask why the transaction was declined. They can tell you whether the decline was due to fraud detection, a limit, or another reason, and they can approve the transaction if it was blocked by mistake.
Once the issue is resolved, you can try the PayPal transaction again. If you want to avoid this problem in the future, you can add a second credit card to your PayPal account and set it as your backup payment method.
Removing your bank account if you no longer want to use it
If you have switched to using a credit card and want to remove your bank account from PayPal, go to your Wallet, find the bank account in your list of payment methods, and click the menu icon (three dots) next to it. Select "Remove" or "Delete" and confirm. The bank account will be unlinked from your PayPal account.
You can only remove a payment method if it is not your default method and if there are no pending transactions using it. If your bank account is currently set as your default, change your default to your credit card first (using the steps above), then remove the bank account.
Removing a payment method from PayPal does not affect your actual bank account or credit card — it only stops PayPal from being able to charge that account. Your bank account will continue to work normally with your bank.
Frequently Asked Questions
Does PayPal charge a fee if I use a credit card instead of my bank account?
PayPal does not charge you an extra fee for using a credit card instead of a bank account. However, your credit card issuer may charge a cash advance fee if they classify PayPal as a cash advance rather than a purchase — this is rare, but check your card's terms or call the issuer if you are unsure.
Can I use a debit card on PayPal the same way as a credit card?
Yes. Debit cards work the same way as credit cards on PayPal — you can link them, set them as your default, and choose them at checkout. The main difference is that a debit card draws directly from your bank account like a check, while a credit card creates a bill you pay later.
What if I want to use different credit cards for different purchases?
You can link multiple credit cards to PayPal and choose a different one at checkout each time. straightforward add each card to your Wallet following the steps above, and then select whichever card you want to use when you are paying. This is useful if you have different cards with different rewards categories.
Will using a credit card on PayPal hurt my credit score?
Using a credit card on PayPal works the same as using it anywhere else — it counts toward your credit utilization (the percentage of your credit limit you are using) and will show up on your credit report. It will not hurt your score as long as you pay your credit card bill on time.
Can I set up automatic payments from PayPal using a credit card?
Yes. If you set up a recurring payment or subscription through PayPal, you can choose your credit card as the payment method, and PayPal will charge it automatically on the schedule you set. You can change or cancel the automatic payment at any time in your PayPal account settings.