Send Cash with PayPal Credit and Choose Your Rewards

With PayPal Credit, you can send cash to friends and family with ease. You can also earn rewards for your purchases.

PayPal Credit offers a range of rewards programs to suit different needs. For example, you can earn 2% cash back on purchases with PayPal Credit.

To get started with sending cash, you'll need to link a bank account or card to your PayPal account. This will allow you to fund your transactions.

You can send cash to anyone with a PayPal account, and they can use it to make purchases online or in-store.

Using a credit card to send money through PayPal can be a convenient option, but it's essential to understand the fees involved. PayPal charges a 2.9% processing fee and a fixed fee of $0.30 on each transaction.

You can use a credit card to send money to friends or family on PayPal and earn rewards, but be aware that the fees can eat into your rewards. If your credit card offers 1.5% or 2% cash back, you may end up losing money to the fees alone.

To give you a better idea of the costs, let's consider a $500 transaction. The 2.9% processing fee would be $14.50, and the fixed fee would be $0.30, totaling $514.80.

If your card issuer considers the transaction a cash advance, you might pay an additional 3% to 5% in transaction fees, adding $15 to $25 more to the total.

It's worth noting that international fees may be even higher, depending on where your recipient lives and conversion rates. If you're planning to send money internationally, be sure to factor in these extra fees.

If you frequently use PayPal, consider a card that offers bonus rewards for PayPal transactions. Some options include:

To send money through PayPal with a credit card, follow these steps: log in to your PayPal account, select "Send" on the main page, enter your recipient's email address or name, enter the amount you'd like to send, choose a linked credit card or add a new one, and review the final confirmation before hitting "Send".

Charges are a crucial aspect of using PayPal with a credit card to send cash. The fees can add up quickly, but understanding them can help you plan ahead.

PayPal charges a 2.9% processing fee on transactions, plus a fixed fee of 30 cents, when you use a credit card to send money. This means that for a $500 transaction, you'll pay $14.50 in processing fees and $0.30 in fixed fees, totaling $514.80.

If your credit card issuer considers the transaction a cash advance, you might pay an additional 3% to 5% in transaction fees, adding $15 to $25 to the total. This can be a significant amount, especially considering the high cash advance APR of 24.99% to 29.99%.

Here's a breakdown of the fees you can expect to pay:

It's worth noting that PayPal doesn't charge fees for person-to-person money transfers using a bank account or PayPal balance. However, using a credit card can result in higher fees, making it essential to weigh the costs against the convenience of using PayPal.

PayPal Credit offers a range of alternative payment options to suit different needs.

You can pay for purchases made with PayPal Credit using a credit card, which allows you to earn rewards points or cashback.

PayPal Credit also offers a payment plan option, allowing you to pay for purchases over time with fixed monthly payments.

This payment plan option can be especially helpful for larger purchases or those who need more time to pay.

PayPal Credit offers a 0% interest rate for 6 months on purchases made with the service.

This 0% interest rate can be a great option for those who need to make a large purchase but don't have the cash on hand.

PayPal Credit also offers a credit limit of up to $25,000 for qualified customers.

This high credit limit can be beneficial for those who need to make large purchases or cover unexpected expenses.

You can earn rewards like cash back, points, or miles when you use a credit card to send money with PayPal, just as you do for other credit card purchases. But watch out for transaction fees that can eat into your rewards.

The processing fee for using a credit card to send money with PayPal is 2.9% of the amount you're sending, plus a fixed $0.30 fee on each transaction. International fees can be even higher, depending on where your recipient lives and conversion rates.

If your credit card offers 1.5% or 2% cash back, you may end up losing money to the fees alone. This is especially true if you're sending money internationally, where fees can add up quickly.

To minimize the impact of fees, consider using a card that earns boosted rewards for PayPal transactions. Some credit cards offer higher rewards rates for PayPal purchases, which can help offset the fees.

Here's a rough estimate of the fees you might incur when sending money with a credit card:

Keep in mind that high APRs may also apply to cash advances, which can be coded as a cash transfer when you send money with a credit card. This can result in higher interest charges and fees.

If you frequently use PayPal, consider a card that offers bonus rewards for PayPal transactions. Some options include cards that earn 1.5 percent or 2 percent cash back on transactions processed through PayPal.

Using a card with bonus rewards for PayPal transactions can be a great way to earn rewards on your money transfers, but it's essential to watch out for transaction fees that can eat into those rewards. A processing fee of 2.9% of the amount you're sending, plus a fixed $0.30 fee on each transaction, can quickly add up.

Cards that offer bonus rewards for PayPal transactions can be a good choice, especially if you're working towards a hefty welcome bonus or using a card that earns boosted rewards for PayPal.