PayPal is a money transfer platform that is based in the United States of America. The company allows you to transfer money across various countries of the world. Statistics show that the service is supported in over 200 countries of the world. When using PayPal, you can fund your transactions with a bank account or debit card. But can you pay someone on PayPal with a credit card? In today’s article, you will determine whether you can use a credit card to send money to someone on PayPal.
PayPal requires you to create an account to be able to use its services. You can create an account online using a smartphone, a computer, or a tablet. You require a secure internet connection to carry out the process. A secure internet connection is the one that no one can phish your details as you enter them online. Insecure internet connections are the public WiFis that allows anyone to enter online. They have weak security, and someone can easily access your details.
The most exciting thing about PayPal is that it has radically changed the way people transfer money to one another across the world. Nowadays, writing checks is just for prestige as you can transfer funds quickly to other people worldwide. Again, PayPal works with hundreds of banks across the globe, whereby you can withdraw your funds after receiving them from someone else.
How to open a PayPal account
To get started with PayPal, you have to visit the PayPal website with your device. As I mentioned earlier, you need a secure internet connection to carry out the process. The following is the procedure for creating a PayPal account. Have a look.
- Using your phone, laptop, desktop computer, or tablet, visit PayPal.
- Hit the Sign-Up tab on the top right of your screen.
- Choose whether you want to open a business account or a personal one.
- Tap continue.
- Add your mobile phone number and tap Next.
- Enter the code sent to your phone number and tap Next.
- Enter your email address.
- Next, enter your first, middle, and last names.
- Create a strong password and tap Next.
- Follow any other guidelines to complete your registration.
Remember that you will have to verify your account later on, and that means you will need a bank account to link to PayPal and upload your identification document.
How does PayPal work?
The operation of PayPal is straightforward. Once you create your PayPal account, you can download the PayPal app from the relevant sites and login into your account. The PayPal app allows you to manage your account appropriately.
To use PayPal, you must have a balance in your account. There are various ways you can avail money in your account. You can have your friends send money to your account to use it in your transactions. Alternatively, you can use your linked bank account to add money to your account when making a transaction.
When you have money in your account, you can carry out the following transactions.
- Send money to others
- Transfer money to a bank account
- Move money to a debit card.
- Buy goods and services.
How to send money with PayPal
Transfering money from your PayPal account to another account is easy. You only need the recipient’s ID and enough balance to cater for the transfer. The following is the process to transfer funds to your friends and relatives.
i) How to send money from your computer
- Log into your PayPal account.
- Navigate to Payments.
- Enter the recipient’s name or email address.
- Tap Next.
- Select sending to your friend or Paying for an item or service if the option is available.
- Follow the steps.
ii) How to send money using the mobile app
- Log into your account.
- Hit on Payments.
- Tap Pay.
- Enter the recipient’s PayPal username, name, email, or phone number.
- Enter the amount to send.
- Choose the currency to use, then add a message (this is optional).
- Tap Next.
- Choose how you want to pay
- Tap Next.
- Choose “Friends and Family.” if making a purchase transaction, you can select “Goods and Services” and hit Next.
- Check your details and tap Send.
If your PayPal is not verified, you will have limits on the amount of money you can send. PayPal has put a $500 limit per month for unverified users. To verify your account, it means that you have to add additional information to your account. Initially, I mentioned that you should add your bank account and identification details.
How to transfer money from PayPal to your bank account
One can transfer money from PayPal account to a bank account using simple steps. You must make sure that you have added a bank account to your PayPal account. The following is the process to add a bank account.
- Log in to your PayPal account.
- Look for the wallet on the Menu.
- Click on Link a bank account.
- Add in your bank account details via Bank Verification or Wire Transfer.
- Enter your country
- Confirm your bank card
- Verify your card with UnionPay. You will receive a code via your phone number, and you should enter it in the appropriate space.
After successfully linking your bank account to PayPal, you can transfer money from PayPal to your bank in the following manner.
- Log into your PayPal account.
- Just below your PayPal balance, tap Transfer to your bank.
- Select where you’re transferring the funds from
- Select where you’re transferring the money to.
- Choose the amount to transfer.
- Tap Continue.
- Review the transaction details, and then click Transfer.
Transfering money from your account to your bank account takes around three business days to complete. However, when transfering money from your PayPal account to a debit card that links to your account, the money reflects within 30 minutes. PayPal to bank transfer is free, but PayPal to debit transfer attracts some fees.
Can you pay someone on PayPal with a credit card?
Credit cards are goods since they allow you to borrow money from your card issuer. Furthermore, the cards allow you to earn rewards when using them for various transactions.
You can use a credit card to fund your PayPal transactions. However, unlike debit cards, you have to part with hefty fees when you use a credit card as the source of money for your PayPal transaction. PayPal has to charge you a 2.9% since you are using cash advance to transfer money. Moreover, the company charges a fixed fee of 30 cents to process a person-to-person transfer.
You can see how disadvantageous it is to use a credit card to transfer money to others. That means it is not a good idea to use a credit card to fund PayPal transactions. It should be the last option.
Generally, you can transfer money from a credit card to your PayPal account. But can you transfer money from a credit card to a bank account? Well, credit cards also allow you to transfer money to bank accounts either online, at a bank account, or an ATM point. Credit card to bank transfer also attracts fees.
How much can you send on PayPal?
PayPal has various limits for various transactions. When transferring money to a debit card, PayPal has the following limits.
- Minimum transfer amount – $1.00
- Maximum transfer amount per day – $5,000
- The Maximum transfer amount per transaction – $5,000
- Maximum transfer amount per week – $5,000
- Maximum transfer amount per month – $15,000
When transferring money to linked bank accounts, you will also encounter limits on the amount of money you can transact. The limit for transfering money to a bank account is a flat amount. You can move a flat maximum of $25,000 per transaction. Therefore, bank transfers allow you to transfer larger amounts compared to debit cards. You can transfer such a large amount to a bank account because banks are usually verified.
However, as I mentioned earlier, to ensure that you get the maximum transfer limits, yuou have to verify your PayPal account. You may wonder why PayPal puts limits on the amount to transact with debit cards. That is usually to protect businesses from losing money in case of fraud.
How to transfer money from a credit card to a debit card
If you want to know how to transfer money from a credit card to a debit card, you must be willing to make such a transaction. Well, it is possible to transfer money from your credit card to a debit card. I bet you understand that debit cards are linked to checking accounts and sometimes to savings accounts.
Therefore, if you want to transfer money to your debit card from your credit card, you can transfer to the bank account that links to the debit card. As I mentioned earlier, one can transfer money from a credit card to a bank account in four main ways. These include using a check, transferring at a branch, transferring online or at an ATM.
Bottom line
PayPal is a payment platform that allows you to transfer money from one person to the other. You can transfer money from the USA to various countries as PayPal supports over 200 nations. PayPal requires you to add a bank account or a debit card to fund your transactions when your balance is insufficient. You can also move money from your PayPal account to your bank or debit card.
