Can You Use Paypal To Pay Credit Card Bill?

PayPal has become one of the most popular online payment methods, providing a convenient way for people to send and receive money digitally. A common question that arises is whether PayPal can also be used to pay off credit card bills. In this article we’ll examine if and how PayPal can be utilized to make credit card payments.

What is PayPal?

PayPal is an online payments system that allows users to make financial transactions digitally. It serves as a digital wallet, providing a quick and easy way to send, receive and request money from others.

Some key things to know about PayPal

• PayPal accounts are free to open. You just need an email and bank account.

• Money can be loaded onto PayPal from bank accounts, debit cards or credit cards.

• Transactions occur directly between PayPal accounts. No bank account details are shared.

• PayPal charges fees for some transactions like sending money abroad.

• PayPal offers purchase protection on eligible purchases.

• PayPal has over 426 million active accounts worldwide.

Can You Directly Pay a Credit Card Bill with PayPal?

The short answer is no, you can’t use your PayPal balance or account to regularly pay off a credit card bill.

Monthly credit card bills can’t be paid with PayPal from a credit card company. The main ways to pay credit card bills are via:

• Bank account (checking or savings)
• Money order
• Paper check
• Debit card

PayPal is not included among the standard payment options for ongoing credit card bills.

The reasons why creditors don’t allow PayPal credit card payments include:

• Processing fees – Credit card companies avoid paying PayPal’s transaction fees.

• User identification – PayPal accounts don’t verify user identity as thoroughly as banks.

• Account linking issues – Technical barriers prevent linking PayPal to credit card accounts.

There is no way to directly settle your monthly credit card bill with PayPal, unfortunately. But there are some workarounds, which we’ll explain next.

Workarounds: How to Indirectly Pay Credit Cards with PayPal

While you can’t straightforwardly pay your credit card with your PayPal account, there are some indirect ways to accomplish it by linking your PayPal funds to a bank account. Here are the main options:

1. Transfer PayPal Funds to Bank Account

The easiest way to get around this is to move or withdraw money from your PayPal account to your bank account. This can be done in a few ways:

• Standard transfer – Free transfer from PayPal to bank account in 1-3 business days

• Instant transfer – Fee-based instant transfer in minutes

• PayPal debit card – Use your PayPal debit card to withdraw cash from ATMs

• PayPal checks – Order a paper check sent to you by mail

Once the money is in your bank account, you can use that balance to pay your credit card bill through your bank’s online bill pay or by mailing a check.

2. Use PayPal Credit Card

Another option is getting a credit card that lets you pay your bill with your PayPal balance. Examples include:

• PayPal Extras Mastercard
• PayPal Cashback Mastercard

These cards link directly to your PayPal account. When your statement comes due, you can use your PayPal funds to pay it off. Then use that card to pay off your other credit card.

A major caveat is that these PayPal credit cards charge foreign transaction fees, so they are best for domestic spending. And like any credit card, interest charges apply if you don’t pay in full each month.

3. Use a Third-Party Payment Service

Services like Plastiq and PayTM make it possible to pay bills with a credit card for a processing fee. So in theory, you could:

• Pay off Credit Card 1 with your PayPal Mastercard
• Use Plastiq to pay Credit Card 2 with your PayPal Mastercard
• Pay off your PayPal Mastercard bill with your PayPal balance

However, these services charge fees ranging from 2.5% to 5% of the payment amount. So you’d have to run the numbers to see if it’s worth it after factoring in these costs.

Pros and Cons of Using PayPal for Credit Card Bills

Let’s summarize some of the key advantages and disadvantages of using PayPal to pay your credit card statements:

Pros

• Bypasses the need to transfer PayPal funds to your bank account

• Provides a way to put PayPal balances toward credit card bills

• PayPal cashback credit cards can earn rewards on payments

Cons

• Indirect workarounds add hassle compared to direct payment

• Third-party services charge processing fees

• PayPal credit cards have foreign transaction fees

• Credit card interest still applies if balance not paid in full

So PayPal bill pay options like bank transfers or linked credit cards can be helpful in certain situations. But the additional steps and possible fees should be considered before deciding if it’s the right move for your needs.

Tips for Using PayPal to Manage Credit Card Bills

If you want to utilize PayPal in conjunction with credit card payments, here are some tips:

• Double check that your bank transfers from PayPal fully clear before assuming the money is available.

• Be cautious of PayPal phishing scams when receiving fake bills. Verify biller legitimacy.

• Minimize credit card interest charges by always paying statement balance in full when using a PayPal cashback card.

• Consider paying larger bills in installments via PayPal Bill Pay if the biller allows it.

• Use PayPal payment confirmation as proof if disputes arise over whether a bill payment was made.

• Set up PayPal two-factor authentication for increased account security when linking to bank accounts.

The Bottom Line

Unfortunately, PayPal cannot be used as the main payment method for ongoing credit card bills. Card issuers do not recognize it as a direct payment channel.

However, workarounds do exist, such as withdrawing funds to a bank account or utilizing a PayPal cashback credit card. While indirect, these options allow you to effectively harness your PayPal balance for credit card payments.

Just be mindful of potential fees, transfer times, interest charges, and security precautions whenever linking PayPal to credit card accounts. With proper understanding of the limitations, PayPal can be a helpful tool in managing credit card payments.