If you have an overdue credit card balance hanging overhead, or you earn an income in a foreign currency, you may be investigating which credit card payment options are available to you. Unfortunately, it is not possible to use PayPal directly to pay for a credit card bill. But there are other ways to repay a credit card.
PayPal is a popular online payment option as it is considered a more secure method to make payments without sharing financial details. It is a payment service available to both consumers and businesses, so individuals may check out faster and more securely, and retailers may easily accept payments and manage credit risk.
Paying your credit card bill can be a tedious task. You have to remember when it’s due, log into your account, enter payment information, and submit the payment. Doing this every month takes time and effort. But what if you could simplify everything and pay your Discover bill directly through your PayPal account?
PayPal provides a convenient way to pay your Discover card bill without logging into your Discover account. In this comprehensive guide, we’ll explain how paying your Discover bill through PayPal works the benefits, and everything else you need to know to take advantage of this payment option.
Overview of Paying Discover with PayPal
PayPal has partnered with Discover to allow cardholders to easily pay their Discover credit card bills through their PayPal accounts.
To do this, you first need to link your Discover card to your PayPal account. Once connected, your Discover card will show as a payment method in your PayPal Wallet.
When it’s time to pay your Discover bill, you simply log into your PayPal account, select Discover as the payee, enter the payment amount, choose your linked Discover card as the payment method, and send the money.
The payment will be immediately processed using your PayPal balance, bank account, or other funding sources in your PayPal account. It’s a fast and simple way to pay your monthly Discover bill
Step-by-Step Guide to Pay Discover with PayPal
Here are the detailed steps to set up and use PayPal to pay your Discover credit card bill:
1. Link Your Discover Card to PayPal
- Log into your PayPal account
- Click on the “Wallet” tab
- Select “Link card”
- Enter your Discover card details and confirm
Once successfully linked, your Discover card will show in your PayPal Wallet as a payment method.
2. Enable Pay with Rewards (Optional)
If your Discover card offers cashback or rewards, you can enable PayPal’s Pay with Rewards feature. This allows you to redeem rewards when making payments and purchases.
To set this up:
- Go to your PayPal Wallet
- Click “Link your Cashback Bonus” next to your Discover card
- Accept the terms and connect your rewards balance
Your rewards balance will now be viewable in your PayPal Wallet.
3. Make Payments
When it’s time to pay your Discover bill:
- Log into PayPal
- Click the “Send Money” tab
- Enter Discover Card as the recipient
- Enter the payment amount
- Select your linked Discover card as the payment method
- Click send!
The payment will be immediately processed through your chosen funding source.
Key Benefits of Paying Discover with PayPal
Paying your Discover credit card bill through PayPal provides several advantages:
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Convenience – No need to log into your Discover account. Initiate payments quickly from PayPal.
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Payment Flexibility – Use PayPal balance, bank account or other payment methods to pay your bill.
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Rewards – Instantly redeem Discover rewards when making bill payments.
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Payment History – PayPal stores your Discover payment history all in one place.
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Automatic Payments – Set up recurring payments to have your Discover bill paid automatically each month.
Tips for Paying Your Discover Bill with PayPal
Follow these tips to get the most out of paying your Discover card through PayPal:
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Set up text or email alerts from PayPal when making payments for added security.
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Schedule payments a few days before the due date in case of any delays.
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Always enter the correct full payment amount to avoid late fees.
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Linking business credit cards to use rewards is not currently supported. Only personal cards are eligible.
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Paying from your PayPal balance can help you earn money back on purchases.
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If a payment fails, PayPal will use a linked bank account, debit card or other source to cover it.
PayPal Purchase Protection
One final benefit of paying your Discover bill through PayPal is that you get PayPal Purchase Protection on eligible payments.
This provides coverage in case issues arise with the billing. For example, if you pay your bill on time but Discover says it was not received, PayPal can reimburse you under Purchase Protection.
There are limitations, but it adds an extra layer of security when paying important bills through PayPal.
Using Discover Rewards with PayPal
As mentioned above, you can use Discover cashback rewards or miles when paying your bill through PayPal using the Pay with Rewards feature. Here are some key things to know:
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Rewards are used at a rate of 1 cent per point or 1 mile per 1 cent.
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PayPal deducts the rewards directly from your Discover rewards balance.
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Rewards can only be used for personal card payments, not business cards.
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If you don’t have enough rewards, the remaining balance will be charged to your linked Discover card.
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Eligible purchases only. Rewards can’t be used for things like peer-to-peer payments.
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Check the PayPal Rewards Terms and Conditions for full details.
Paying Other Credit Cards with PayPal
While PayPal’s direct credit card linking and payment options currently only work for Discover cards, you may be able to use PayPal to pay other credit card bills with a few extra steps.
For cards from issuers like Visa, Mastercard, American Express, etc. you can:
- Pay your bill as a friend or family member using their name and email address
- Use the credit card issuer’s bill pay service if they accept PayPal
- Make a free electronic transfer into your bank account to then pay the bill
- Withdraw cash from your PayPal balance at Walmart or other stores to deposit and pay
These options take some extra work but can allow you to route non-Discover card payments through your PayPal account balance and linked funding sources.
Paying with PayPal Balance vs. Bank Account
When paying your Discover bill via PayPal, you can choose to pay using your PayPal balance or directly from a linked bank account or debit card.
Here are some key differences between the two:
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PayPal Balance – Instant transfers, immediate payment, can earn rewards, money not usable outside PayPal.
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Bank Account – Takes 2-3 days, money kept in your bank, bank account pulls the money at payment.
Both options work for paying your bill. Using your PayPal balance provides instant access to the funds but they remain within PayPal. Paying directly from a bank account keeps your money in your bank until the payment and avoids balance transfer fees.
Using PayPal Credit for Discover Payments
PayPal Credit cannot be used directly to make Discover credit card payments at this time.
However, you can use PayPal Credit to add funds to your PayPal balance, and then use that balance to pay your Discover bill.
So it is possible to indirectly use your PayPal Credit line to pay your Discover card, just not directly. PayPal Credit is treated the same as a linked bank account or debit card when making payments from your balance.
Is Paying Discover with PayPal Safe?
Yes, paying your Discover credit card bill through PayPal is generally very safe. PayPal utilizes advanced encryption and fraud prevention tools to secure payments.
Here are some of the key security benefits when paying Discover with PayPal:
- Encrypted transactions for card linking and bill payments
- No need to input full card details into PayPal system
- Automatic alerts on payments add oversight
- PayPal Purchase Protection on eligible transactions
- Link and manage cards directly within PayPal app/site
To ensure optimal security, always use strong, unique passwords and enable two-factor authentication. Also, regularly review linked cards and payment history to detect any suspicious activity.
PayPal Balance: Frequently Asked Questions
Here are answers to some common questions about using your PayPal balance for Discover bill payments:
Can I use my full PayPal balance to pay Discover?
Yes, you can apply your entire PayPal balance towards your Discover card payment if sufficient to cover the amount due.
What if my balance doesn’t cover the full payment?
If your PayPal balance does not cover the entire Discover payment amount, the remaining balance will be automatically covered by a linked bank account, debit card, credit card or other funding source.
Does PayPal charge a fee for Discover bill payments?
No, PayPal does not charge any fee specifically for paying your Discover credit card bill. However, standard fees for balance transfers or withdrawals out of PayPal may apply.
Can I schedule recurring Discover payments from PayPal?
Yes, you
How else can you repay a credit card bill?
If you are based in Australia, earning an Australian income, it may be simpler to use one of the card issuers’ preferred payment methods, including:
- Payment via direct debit
- Payment via EFT
- Payment via BPAY
- Payment via telephone banking
- Payment via Australian Post
- Payment in branch, in some instances
If you’re struggling with a large overdue credit card balance, keep in mind that by only repaying the minimum repayment amount (generally 2% of the balance, or $20, whichever is greater) it makes paying off your statement in full much more challenging.
ASIC MoneySmart’s Credit Card Calculator shows that if you have a $10,000 balance on a credit card charging 16.6% interest, it will take you over 36 years and 10 months to pay off this balance in full, if you only made minimum repayments. Alternatively, if you paid $500 a month towards this credit card debt, you could pay it off in just two years.
It could be worth looking at your budget and making consistent repayments towards your credit card debt, so you can chip away at this outstanding balance as quickly as possible. It can be very easy to see credit card debt snowball out of control if you’re not careful.
This article is over two years old, last updated on October 24, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent credit cards articles.
Product database updated 10 Dec, 2024This article was reviewed by Personal Finance Editor
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Can you use PayPal to pay a credit card bill?
Unfortunately, your credit card issuer may not accept PayPal payments for your credit card bill.
If you earn an income in a foreign currency, you’ll typically want to use Australian dollars to pay your Australian credit card bill. You can either transfer the money or use BPAY from your bank account for this.
Another option is to use PayPal to pay off your credit card debt – but not directly. PayPal can be used to receive and make payments in different currencies. You can use the PayPal balance to transfer money to your Australian bank account, and then pay your credit card bill with these funds.
The transfer may take anywhere from 1-3 business days. Keep in mind that international transfers via PayPal are also possible; however, the fees may be high.
