Can PayPal Debit Card Use PayPal Credit?

With PayPal, 392 million active users transfer money and make payments. This financial platform successfully conducts over 15 billion transactions every year. Every member gets a credit card and a regular debit card. But, one question still remains – can PayPal debit cards use PayPal Credit? Let’s find out.

PayPal debit cards, better known as Cash Cards, are linked to your PayPal balance. It is a debit card which means there is no credit check involved when applying. With a PayPal debit card, PayPal Credit cannot be used.

Person using a credit card and POS device

What Is PayPal Credit?

PayPal Credit acts as a sort of credit card. It is an open-end credit card account that provides the members with a reusable credit line that is a part of their account with the platform. They have the flexibility to pay for their purchases over time or right away. It is user-friendly, and every member can apply for it. However, it is vital to know that the option is subject to credit approval. Once you have it, you can use it anywhere the financial platform is accepted. The only thing one has to do is to select PayPal Credit as a payment method.

Woman making a purchase at a store

Here Is Why PayPal Debit Cards Don’t Use PayPal Credit

PayPal Credit provides users with the option to pay for a purchase over time. They have the possibility to pay later.  Users will receive a statement balance that needs to be repaid in monthly payments.

However, debit cards allow you to only send and withdraw money from your balance as needed. You will be required to pay for the purchase right away. The fact that you have no credit or you have excellent credit is redundant when paying with a debit card. Once you are low on your funds, your payment will get declined.

A person paying with a card

Even Though You Cannot Use PayPal Credit, Debit Cards Are Still Useful

These cards work like regular MasterCards and are useful when shopping. For instance, if you are buying groceries at a supermarket, just swipe the card through the reader, enter your PIN, and the payment is complete.

In case you need real cash, insert the card into an ATM and withdraw any sum of money from your PP account by using your PIN. What is more, you will be offered a Preferred Rewards program which allows you to get back money for purchases that don’t require a PIN.

Ensure You Can Always Pay With Your Debit Card With Bank Account Integration

One should opt to link a PayPal account and a bank account in order to efficiently transfer funds between the platform and the bank. It is the safest way to ensure that you will always have funds you can rely on when paying with a debit card. For instance, if you choose to transfer $400 from your bank to the financial platform, you can use plastic to make payments that don’t exceed this amount.

What is more, the bank can be used as a backup funding source. You don’t need PayPal Credit when you can cover purchases that are more than your balance with your own bank account. However, it’s essential to know that the platform always uses the money on your PP account before using your funding backup source.

Make Effortless Online and Over the Phone Purchases

When purchasing something over the phone or on the Internet, you need to enter the debit card’s expiration date and number on any website to complete the transaction. Certain websites will offer customers to use the card as a debit card or a PP credit card option. It is possible for the transaction to go through when using your debit card since the company is trying to process it as a cash payment. The solution to this problem is to select the credit option. For payments over the phone, the only thing one is required to do is to enter the three-digit code.

Person using a debit card and a laptop

How Can You Fund Your PayPal Cash Card?

Use your PayPal Cash Card to your advantage and learn how to always have available funds even though credit is not available. Here is how to do it properly:

  • You should set up a direct deposit with a government benefits provider or your employer so you can receive it immediately on your card.
  • It will be easy to deposit a check using a smartphone. Take a photo of the check and quickly deposit it to the application.
  • You can always load the card at a designated retail location. It is available at more than 100,000 Rite Aid, 7-Eleven, and CVS locations across the US. Only swipe the plastic or scan the barcode on the app.
  • Finally, decide to transfer funds from the bank account to PayPal’s account.

How Much Are PayPal Cash Card Fees?

Even though there is no monthly or annual fee with this type of card, there are some transaction and withdrawal fees users should be aware of. Here is a chart with Cash Card fees.

Type of feeAmount charged
Fee for over-the-counter withdrawal$3
ATM international and domestic withdrawal fee$2.50 (The owner of the ATM may charge a fee as well,), 0$ in case the member uses the 33,000 MoneyPass ATMs nationwide
Fee for foreign transactions2.5%
Fee for cash reload serviceUp to $4.95

You Can Benefit From Using PayPal Debit Cards Even Without PayPal’s Credit

PayPal Credit and debit cards function in a different way. While the platform’s credit option allows you to cash a check and pay for goods and services later, the debit card withdraws funds from your balance instantly. The card cannot be linked to PayPal Credit. But even though this feature is not available in this specific situation, one shouldn’t decide against using it in general. If you are a generous spender, using a debit card would be good for your finances. Link your bank account with the application and use funds you have available for online, over the phone, or over-the-counter purchases.