Do You Need a Credit Card for PayPal?

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  • Post last modified:September 12, 2021

When signing up for PayPal, people have a common question: whether they need a credit card or not. Do you need a credit card for PayPal?

You don’t need a credit card for you to use PayPal’s services. With PayPal, you can make payments or receive money online even without using a credit card. But you must have a PayPal account and link your bank account to do it.

So you won’t be needing a credit card to set up a PayPal account; however, you need a bank account or debit card to make online purchases. After setting up an account, you can use it to buy items online on websites that accept PayPal payments.

Read on to learn if PayPal requires its users to have credit cards and how to set up a PayPal account without using a credit card.

Do You Need a Credit Card for PayPal? 

do you need a credit card for paypal

You don’t need a credit card to use the services of PayPal. They don’t require credit cards in making or receiving online payments.

In setting up a PayPal account, you will need a debit card or a banking account. Any one of these two items is required because you will be asked to link them to your PayPal account. Without a banking account or debit card, there is no way for you to make or receive payments through PayPal.

When you purchase or receive a payment, you will use your PayPal login information to start the process. In other words, you will be required to log in to your PayPal account each time you make an online transaction.

Paying things with your debit card linked to PayPal is much safer than using your debit card alone. Online merchants, their employees, and thieves and hackers will only see your email address, your PayPal username, and some personal information every time you use PayPal.

So PayPal is safer for online shopping. Can you use PayPal without a card? You can enjoy PayPal’s services without a credit card because you are not required to type in your credit card details when you shop. That is why there is no way hackers can steal your credit card’s personal information.

With PayPal, you can buy things anywhere in the world easily and safely. You only need to log in to your PayPal account without adding your address or card details. Checking out after confirming your purchases is also quicker with PayPal.

How PayPal Works

PayPal can give you the ability to make online purchases and payments without a credit card. But you must have a bank account and a PayPal account. These two must be linked for you to be able to pay or receive payments online.

What actually happens every time you make a PayPal transaction is that you transfer money from your bank account to your PayPal account using the balance on your bank account to pay for the items you buy.

The process is similar to how a debit card works. Your PayPal account withdraws money from your bank account to make payments. Typically, it will only take one day for PayPal to complete a transaction.

Setting Up a PayPal Account Without a Credit Card

If you are a business owner, you can take advantage of the services of PayPal to ensure the safety of all your financial transactions. There is no need for your credit card number if you want to sign up for PayPal’s standard business account. But you still need to link your business’s bank account to your PayPal account.

Creating a PayPal account for your business is just as easy as creating a personal account. Here are the steps you need to take:

1. Go to PayPal Sign-Up Page

Once you are on this page, locate the PayPal for Business and Nonprofits box and then click on “Get Started.”

2. Read the Details

PayPal offers three different business accounts. Choose the free option. It is called Standard Plan. This plan allows you to accept PayPal and credit card payments on your online store or website. To begin the process, click “Get Started” or “Apply Now.”

3. Create Your PayPal Account

Click the “Create a New Account” button two times. Doing this will lead you to the sign-up form.

4. Choose Your Type of Business

You have two types of business choices: individual or partnership. Select the one that applies to your business.

5. Type in Your Email Address and a Password

Create an email address and a unique password for your business. You can create a password that consists of 8 to 20 characters. It can be a combination of alphanumeric characters.

6. Choose Two Security Questions and Answers

PayPal will give you some options of questions that will help you access your account should you ever forget your password. Choose the questions that you like.

7. Enter the Code

There will be a code that appears in the image when the “Enter the Code” prompt shows up. After typing the code, click “Continue.”

8. Enter Your Chosen Name

Type the name that you want to appear on your website’s customer payment pages. You may choose to enter your name or your company name.

9. Type in the Date Your Business Is Established

Enter the date on which you have established your business. If you have a website, enter its URL address in the Website URL field.

10. Choose the Business Category

Select the category of your business or the types of items you are selling. Answer the questions about the amount of your average transaction and the monthly payment volume of your business.

11. Enter Your Personal Information

Type your name, physical address, and phone number. Then click on “Agree and Continue” to create your account.

12. Open Your Mailbox

Log in to the email address that you have provided to PayPal in creating your account. Go to your inbox and look for the confirmation email from PayPal. There should be a link in the email. Click that link. It will lead you back to the PayPal website. On the page that will appear, you can confirm your PayPal account.

Linking Your Bank Account to PayPal

can you use paypal without a card

To repeat, you can only use PayPal if you will link your bank account or debit card to your PayPal account. Here are the steps on how you can link your bank account to PayPal:

1. Login to Your PayPal Account

Visit PayPal’s official website and enter your email and password. Then click “Log In.”

2. Access Profile

Once you are logged in, put the pointer or cursor on “Profile” at the top of the page. Then click “Update Bank Account.”

3. Choose Your Account Type

On this page, you’ll be given two options: savings or checking account. Choose one that fits your business. Type your account number and the nine-digit routing number in their respective fields.

Account numbers are typically composed of 17 digits. Locate the routing number on the left portion of a check issued by your bank. You can find the account number on the check’s right side. It is usually printed.

4. Click “Continue”

By clicking the “Continue” button, you will link your bank account to your PayPal account.

Again, do you need a credit card for PayPal? You do not need a credit card for PayPal. With PayPal, you can make payments or receive money online even without using a credit card. However, you do need to link a bank account to use PayPal.

Things You Can Do On PayPal Without Using Credit Cards

PayPal has several features that you can use without any credit card linked to your account. Even without using a credit card, you can use your PayPal account in the following ways:

1. Receive Payments

If you are selling products online or offering a service, you can request your customers to make their payments on your PayPal account. Your customers should also have their own PayPal accounts to be able to complete the transactions.

This is a good way to accumulate a balance on your PayPal account instead of a credit card account. You can then use your balance to pay for something that you need online, again using your PayPal account.

2. Send Money

Once you have accumulated enough balance on your PayPal account, you can use it to pay for any item that you want to buy online – as long as the amount does not exceed your balance. Again, the seller must also have their own PayPal account for the transaction to push through.

3. Create a Money Pool

With a PayPal account, you can also create a Money Pool. Instead of your funds deposited on a credit card, you can have your funds accumulate in this money pool. This PayPal feature functions just like an easy fundraising tool.

4. Create an Invoice

PayPal also allows you to create invoices that you can send to your customers as bills that they need to pay. Creating an invoice from scratch will take time. But PayPal already has this feature that you can use anytime. Your credit card information is not needed to use this feature.

5. Convert PayPal Balance to Check

You can also get money from your PayPal balance if you convert it to a personal check. There is a $1.50 fee if you will use this feature. So, if you need $100 immediately, and your PayPal balance is more than $1,000, start the process, and you will receive the check in the mail without ever revealing your credit card information.

6. Donate to Charity

If your favorite charity needs funds, you can send them a part of your PayPal balance as your donation. You can use the Money Pool feature of PayPal for this purpose. PayPal will use its PayPal Giving Fund, a 501(c)(3) charity. It will deliver the money without getting any information from your credit card.

Importance of Linking PayPal to a Bank

can you use paypal without a credit card

In creating your PayPal Account, they will instruct you to verify it. The verification process requires you to link your bank account to the PayPal account that you have just created. So, you need a bank account and routing numbers.

You can ask your bank for these routing numbers. These numbers are also indicated in your monthly bank statements and at the bottom of your blank checks.

By linking your PayPal account to your bank account, you can transfer money to and from PayPal without using a credit card. While there are other ways to send money on PayPal, this is the best way if you don’t want to use your credit card.

Account Limits

You should also be aware of the limits to your PayPal account before making any transaction. If you don’t link your bank account, PayPal will limit the amount you can take out or send from your account.

If you don’t want PayPal to impose its limits, you need to link your bank account. You may also be asked to provide your Social Security Number for transactions of larger amounts. Even then, you may also be limited to sending $10,000 per transaction. The actual amount depends on the currency you are using.

Linking your banking account to your PayPal account will benefit you more than linking a credit card. If you only linked a credit card, you will not get hold of the money you receive. You can let the amount accumulate in your account, but you can’t use it outside of PayPal.

Conclusion: Do You Need a Credit Card to Use PayPal? 

You don’t need a credit card to use the services of PayPal. This payment portal does not require its users to have a credit card to make payments or receive money. However, you must have a PayPal account to use their services.

You should also have a bank account or a debit card. To make or receive payments using PayPal, you must link your bank account or debit card to your PayPal account.

Other services of PayPal which you can take advantage of include:

  1. Receive Payments
  2. Send Money
  3. Create a Money Pool
  4. Create an Invoice
  5. Convert PayPal Balance to Check
  6. Donate to Charity