Use PayPal to Pay Your Credit Card Bill Easily

Paying your credit card bill is an essential part of maintaining good credit and avoiding interest charges And using PayPal to pay your credit card bill can be a convenient option In this comprehensive guide, we’ll explain how PayPal bill pay works, the pros and cons of using PayPal for credit card payments, and step-by-step instructions on how to pay a credit card bill with PayPal.

Overview of Paying Credit Card Bills with PayPal

PayPal is an online payments system that allows users to send and receive money online. One of the features PayPal offers is the ability to pay bills directly from your PayPal account. This includes paying credit card bills.

Here’s a quick rundown of how paying credit card bills through PayPal works

• Link your credit card bill within your PayPal account. You’ll need to enter details like your account number, biller name, etc.

• When your credit card bill is due, log into your PayPal account and schedule a payment. You can pay immediately or schedule a payment for the future.

• PayPal will transfer funds from your linked bank account, debit card, credit card, or PayPal balance to make the credit card payment.

• PayPal will deliver the payment info to your credit card company. It takes around 5 days for the payment to process completely.

So in essence, PayPal acts as a middleman to deliver your credit card payment. The payment ultimately comes from your bank account or other funding source connected to your PayPal account.

Pros of Paying Credit Cards with PayPal

Here are some potential benefits of using PayPal to pay your credit card bill:

• Convenience: You can pay all your bills, including credit cards, from one place without logging into multiple accounts.

• Payment reminders: PayPal can remind you when a credit card payment is due so you avoid late fees.

• Payment scheduling: Schedule one-time or recurring credit card payments for the future. Useful for setting auto-pay.

• Mobile app: Pay bills on-the-go with the PayPal mobile app.

• Payment history: PayPal stores payment records so you can easily track payments made.

• Multiple funding sources: Pay your credit card with bank account, debit, other credit cards, or PayPal balance.

• Consumer protections: PayPal offers fraud protection and dispute resolution in case of errors.

Cons of Paying Credit Cards with PayPal

There are also some potential drawbacks to consider:

• Processing time: It takes around 5 days for PayPal credit card payments to process completely.

• Fee for bank transfers: PayPal charges a 1% fee (minimum $0.25) for instant bank account transfers.

• No rewards: You don’t earn credit card rewards when paying your credit card bill with PayPal.

• Third-party: Some may prefer not to involve third-parties in credit card payments for privacy reasons.

• Limited billers: PayPal doesn’t have every possible biller available. Yours may not be supported.

So you’ll need to weigh the pros and cons to decide if PayPal bill pay fits your needs and preferences. It can be a good option for those who want an easy consolidated payment hub.

Step-by-Step Guide on Paying Credit Card Bills with PayPal

If you want to use PayPal to pay your credit card bill, follow these steps:

1. Add Your Credit Card Bill to PayPal

• Log into your PayPal account online or in the mobile app and access the Bill Pay tab.

• Search for your credit card company or biller. Make sure the biller name matches your statement.

• Enter your credit card account number and any other billing details required.

• Confirm the billing information is accurate. Then add the credit card bill within PayPal.

2. Choose Your Payment Method

• When paying your credit card bill, you can select a bank account, debit/credit card, or PayPal balance.

• Using a bank account is the cheapest option. PayPal charges a 1% fee for debit/credit cards.

• Make sure your payment source is linked and has sufficient funds.

3. Schedule the Payment

• In Bill Pay, select your credit card bill and click the “Pay” or “Pay Bill” button.

• Enter the payment amount due. PayPal may fetch bill details like the amount due and due date automatically.

• Choose the date you want the payment sent. PayPal allows one-time or recurring payments.

• Review payment details, then complete payment to PayPal.

4. Wait for Processing

• It takes around 5 days for PayPal credit card payments to get to the card issuer and post to your account.

• Log into your credit card account directly to confirm the payment after a few days.

• Avoid late fees by scheduling the payment at least 5 days early.

And that’s it! By linking your credit card bill, scheduling payments, and selecting a funding source, you can easily pay your credit card with PayPal.

PayPal Bill Pay Vs. Plastiq for Credit Cards

PayPal isn’t the only third-party bill pay option. Plastiq is another service that lets you use a credit or debit card to pay bills with a processing fee. Let’s compare the two options:

• Fees – Plastiq charges higher fees, 2.5% of the payment amount. PayPal charges 1% for card payments.

• Payment methods – Plastiq only allows credit/debit cards. PayPal lets you use bank accounts too.

• Billers – Plastiq supports more billers, including rent, mortgage, insurance, and more. PayPal has fewer billers.

• Rewards – You can earn credit card rewards when paying bills on Plastiq. Not possible on PayPal.

• Processing – PayPal payments take around 5 days to post. Plastiq is faster, usually 1-2 days.

So Plastiq is better for maximizing rewards and supports more billers, but the fees are higher. PayPal is more affordable but doesn’t offer rewards.

Questions and Answers

Can I pay my credit card bill directly with my PayPal balance?

No, you cannot pay a credit card bill directly from your PayPal balance. The payment needs to be made from a bank account, debit card, or other credit card linked to your PayPal account.

What happens if I don’t have enough money in my PayPal funding source?

If the bank account or card you selected to make the credit card payment doesn’t have sufficient funds, PayPal will cancel the payment and notify you. Avoid this by making sure your payment source has enough to cover the bill.

How do I know PayPal made my credit card payment successfully?

Log into your credit card account directly after a few days. It takes around 5 days for PayPal payments to process and post. When you see the payment applied, you’ll know it went through. You can also check your PayPal activity for the payment status.

Can I use PayPal credit to pay my credit card?

No, you cannot use PayPal Credit (PayPal’s line of credit) to pay your credit card bill. PayPal Credit can only be used to fund purchases, not to pay bills.

Is paying my credit card bill with PayPal safe and secure?

Yes, PayPal uses encryption and other security measures to keep your financial information safe when transferring funds. Paying your credit card bill with PayPal is as safe as paying directly through your credit card company.

The Bottom Line

Paying your credit card bill through PayPal can be convenient, letting you handle payments in one place. But be aware it takes several days to process and lacks some features of bill pay services like Plastiq. Take the time to understand the ins and outs of PayPal bill pay. Make sure it aligns with your needs and preferences before using it to pay your credit card statement each month.