PayPal and your debit card

By linking your PayPal account to your debit card, credit card or bank account, you can pay for your online purchases and send quick and convenient international money transfers without entering your card or account information each time.

How does PayPal work?

PayPal’s online payments system allows you to send and receive money online from almost anywhere in the world. It uses encryption software to help users send electronic money transfers to other PayPal customers, allowing you to instantly pay for purchases online and on your phone.

There are three ways you can add money or pay for purchases through your PayPal account:

• Using your PayPal balance. This is always the first option when buying something online.
• Using your bank account. You can link your checking account to your PayPal account to pay for purchases online.
• Using your credit or debit card. You can also add money to PayPal from your debit card or credit card.

How do I link my debit card to my PayPal account?

To add a new debit card:

1. Log in to your PayPal account with your email address and password.
2. Click the Wallet link near the top of the page.
3. Click on Link a card
4. Enter your card number, type, expiration date, CVV and billing address. For Visa Debit cards, select Visa.
5. Click Link card.

Confirm your debit card with a PayPal code

In some cases, you may need to confirm your card with PayPal by requesting a PayPal code. To do this you will need to:

1. Log in to your account
2. Click Wallet followed by selecting the card you want to confirm.
3. Click the Confirm your card link.
4. Read the directions for confirming the small charge from PayPal on your card (which will be refunded after you confirm), and then click Get a code.
5. It should take about 3-5 business days for the $2.45 temporary charge to be applied to your card.more info button
6. After you see the charge, navigate back to your Wallet and then to the card that needs to be confirmed. Enter the 4-digit code that appeared on your bank statement or transaction history along with the $2.45 charge from PayPal and click Confirm.

You can now add money to PayPal from your debit card.

• Why was my debit card denied?

  There are a few reasons a debit card might be denied:

  • A debit card can only be linked to one PayPal account at a time.
  • Your card must have a card verification code (CVV), which is usually a three-digit code displayed on the back of the card.
  • The billing address you provide to PayPal must match exactly the billing address on your debit card statement.
  • All numbers you provide, including the card number, expiration date and CVV, must be entered exactly as they appear on the card.
  • Your name must exactly match the name on the card, including any middle names or initials.

  For more, read our 14 reasons your debit card was declined guide

How do I link my credit card to PayPal?

Linking a credit card to PayPal works exactly like linking a debit card. Follow the steps above to link your Visa, American Express, or Mastercard.

How can I remove a debit or credit card from my PayPal account?

If you no longer want your debit card to be linked to your PayPal account:

1. Log in to your PayPal account with your email address and password.
2. Click the Wallet link near the top of the page.
3. Click the card you’d like to remove and then click Remove card, which is near the bottom of the page.
4. Click Remove this card.

Bottom line

PayPal allows you to link your credit card, debit card or bank account directly so that you can easily spend your money online without entering your card or account information for each purchase. But to make your money even more accessible, compare chequing accounts to find one that offers online banking, good customer service and money management options that fit your needs.

PayPal and debit cards FAQ

• Does it cost anything to open a PayPal account?

  No, it is free to sign up for a PayPal account.

• How do I sign up for a PayPal account?

  Go to PayPal's website, click Sign up and follow the onscreen prompts to enter your email address, password and personal details before linking any credit cards, debit cards and bank accounts to your PayPal account.

• Will I be charged a cash advance fee when I send funds using my credit or debit card?

  No, you will not be charged a cash advance fee when you use your debit or credit card to send money.

• Can I link my debit card to more than one PayPal account?

  No, your card can only be linked to one PayPal account at a time.

• Why can’t I link my debit card to PayPal?

  This may be because your card is linked to another account or your card is not compatible with the PayPal system. You can try to link a different card to your account. Alternatively, the billing address you have provided doesn’t match the one on your card statement. Double check that all of your information is accurate and matches the information your financial institution has on record.

• How do I change the expiration date of the credit or debit card linked to my PayPal account?

  Login to your PayPal account and click Wallet at the top of the page. Choose the card you’d like to update, click Update card, enter the new information and click the Update card button.

• What happens if I fail to confirm my debit or credit card?

  If you enter your card code incorrectly five times, your debit or credit card will be disabled from the PayPal system. You will need to contact PayPal for the card to be reset.

Written by

Tim Falk

Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full profile