Can You Send Money to Yourself with PayPal Credit?

Last Updated on May 30, 2023

PayPal Credit is a credit line for purchases, but it doesn’t work like a traditional bank account for cash withdrawals. That said, can you send money to yourself with PayPal Credit? Technically, you can in the US. In the UK, however, you can’t transfer PayPal Credit. This feature seems to be exclusive to the US now.

Can you send money to yourself with PayPal Credit?

Generally, PayPal Credit cannot be used to send money to yourself. But PayPal Credit can still be used to send money to Friends and Family (with a fee) and to make purchases where PayPal Credit is accepted (primarily in the US and UK).¹ However, using PayPal Credit to send money to oneself would be considered a cash advance, which is not allowed according to the user agreement.

Be cautious, especially if the intention is to transfer the money back to oneself.

You will also have to pay a fee, and if the payment isn’t made on time, interest will be added.

How do I send myself cash from PayPal Credit?

There is a method to obtain a cash advance from your PayPal Credit account. This isn’t hidden, and PayPal has even provided a step-by-step guide. Below are the ways to send money to yourself with PayPal Credit:

1. Send your PayPal Credit to a friend

As mentioned earlier, you cannot send money to yourself from your PayPal Credit Account. You will need a friend or relative whom you trust and who has a PayPal Account.

Here are the steps:

Log into your PayPal Account.
Choose Send Money.
Enter the recipient’s email address.
Enter the amount.
Set the payment method to PayPal Credit.
Click Send.

There will be a small transaction fee. In some cases, it could be worth it for the convenience you get though.

The recipient will instantly have the money you sent in their PayPal Account. They should then log into their PayPal Account and do the following:

Select Send Money.
Enter your own email address.
Enter the amount and choose PayPal Balance.
Click Send.

The person who received your PayPal Credit and is trying to send it back to you in normal funds will be charged a small fee, which you can repay by telling them to deduct it from your money to be resent.

Now, the money is in your PayPal Account, in your PayPal Balance. You can then do the following:

Log into your PayPal Account.
Choose Transfer to your bank (a bank account or debit card must be linked to your PayPal Account).
Select In Minutes or 1-3 days (no fee). “In Minutes” comes with a fee since the money is sent instantly to your bank account.²
PayPal will then transfer the money into your bank account linked to your PayPal Account. This process generally takes 2–3 days, depending on your bank’s processing time. Alternatively, you can withdraw from your PayPal without a bank account.

2. Try the eBay trick

Another method to send money to yourself with PayPal Credit is the eBay trick. If an eBay seller does not accept PayPal Credit, you can buy a PayPal electronic gift card on eBay, wait for it to arrive in your email (which usually takes 10-20 minutes), and then use it to buy what you originally wanted.

3. Purchase your own eBay listing

This method helps you to bypass the cash advance, but it comes at a cost. If a credit card is used for a money transfer, it’s seen as a cash advance, inviting an additional fee.

Create a product listing on eBay and buy it yourself. However, this strategy could be less cost-effective due to the sales tax imposed on your receiving account.

PayPal provides an invoice feature for sellers. In theory, you could generate an invoice for a fabricated purchase, but as a new seller, the received funds would be held for 21 days. Make sure your eBay and PayPal are linked to different bank accounts though.

Alternatively, you could make a purchase and return the listing after a few weeks, effectively circumventing the fee and retrieving the money.

What is PayPal Credit?

PayPal Credit provides PayPal users with a means of extending their payment period for certain purchases through a credit line based on their creditworthiness. Synchrony Bank (formerly GE Capital), known for collaborating with retailers to offer credit cards, manages the program.

If your application for the program is approved by PayPal, you can choose “PayPal Credit” as a payment option for websites that accept PayPal payments.

How it works

Once you have a PayPal Credit account, you can select it as a payment method during checkout if the merchant offers this option. If you have sufficient credit, your purchase should be approved. If you don’t have enough credit, PayPal may allow the transaction to proceed by instantly extending your credit limit.

For purchases, if you shop at an online retailer that accepts PayPal, PayPal Credit should be an available option. On purchases of $99 or more, you’ll have 6 months to make payments without accruing interest. For purchases less than $99, you’ll need to pay the balance in full to avoid interest.

Like with a credit card, each month there will be a minimum payment due. You can set up automatic payments or make manual payments through your PayPal account.

For sending money, if you need to pay someone and don’t have the cash immediately available, you can use PayPal.³

Read also: get PayPal funds anonymously

PayPal Credit charges and why it’s not a great idea

1. Interest rates and charges

The Annual Percentage Rate (APR) for purchases is 28.74%, subject to market variation based on the Prime Rate. The same APR applies to Cash Advances.

2. Interest payment

The due date is at least 23 days after each billing cycle ends. Interest isn’t charged on non-promotional transactions if the balance is paid in full by the due date.

3. Penalties

Late Payment: up to $41.00
Returned Payment: up to $30.00⁴

PayPal Credit transaction types

a. Standard purchases

Standard purchases are non-promotional or purchases that don’t fall under promotional repayment terms and/or APRs. This includes Send Money transactions used for purchasing goods or services.

b. Cash advances

Cash advances occur when you use Send Money to transfer money to friends or family members (not businesses) without making a purchase. Unfortunately, you can’t send money to yourself with PayPal Credit.

The cost of the cash advance may include both the amount sent and any fee charged by and paid to PayPal, Inc. for a Send Money transaction.

Cash advance transactions may be declined by PayPal for any reason permitted by law, including suspicion of fraudulent or high-risk behavior.

Resources

What is PayPal Credit and where can I use it? PayPal
How do I get money out of my PayPal account? PayPal
How do I make payments on my PayPal Credit account? PayPal
PayPal Credit Terms and Conditions.— PayPal Credit