Send money to PayPal Credit in three steps
To send money to a PayPal Credit account, log into your PayPal account, click "Send & Request" at the top, enter the recipient's email address or phone number, type the amount, and select "PayPal Credit" as the payment type before confirming. The money arrives in the recipient's PayPal Credit balance immediately, though they cannot withdraw it to a bank account—it can only be used for purchases or transferred to another PayPal account.
PayPal Credit is a line of credit, not a regular wallet. When you send money to someone's PayPal Credit balance, you are adding funds they can spend through PayPal, but those funds do not sit in a traditional account they can cash out. This matters because the recipient cannot simply transfer PayPal Credit to their bank or use it everywhere a debit card works.
The payment itself is free and takes no time. You do not need the recipient's PayPal password, only their email address or the phone number linked to their PayPal account. If you send to the wrong person, you can cancel the payment before they accept it, but once accepted, the money is theirs to use.
Key Takeaways
- Payments to PayPal Credit arrive instantly and are free, but the recipient can only spend the balance through PayPal, not withdraw it to a bank account.
- You need only the recipient's email address or phone number—their PayPal password is not required.
- Once the recipient accepts the payment, you cannot reverse it, so double-check the email or phone number before sending.
- PayPal Credit balances can be used for purchases on PayPal or transferred to another PayPal account, but not converted to cash.
What happens after you send the payment
The recipient receives a notification that money has been added to their PayPal Credit balance. They do not have to accept or confirm anything—the funds are available to use immediately. If they have a PayPal Credit line open, the money sits in that balance and reduces the amount of credit they can still borrow. If they do not yet have PayPal Credit, the funds wait in their account until they open a line or use them for a purchase.
The recipient can spend the balance on any purchase PayPal accepts: online stores, in-app payments, or in-person at retailers with PayPal checkout. They can also transfer the balance to another PayPal account or use it to pay down their PayPal Credit bill if they have borrowed money. What they cannot do is move it to a bank account or withdraw it as cash.
Canceling a payment before it is accepted
If you send money to the wrong person or change your mind, you can cancel the payment as long as the recipient has not yet accepted it. Log into your PayPal account, go to your activity or transaction history, find the payment you sent, and select the option to cancel. Once canceled, the money returns to your PayPal balance or the payment method you used.
The catch: if the recipient has already accepted the payment, you cannot cancel it through PayPal. At that point, you would need to contact the recipient directly and ask them to send the money back. PayPal does not reverse accepted payments between accounts, even if you made a mistake.
Payment limits and how long they take
PayPal does not publish a single limit for sending money to PayPal Credit. The amount you can send depends on your account history, whether you have verified your identity, and your PayPal account status. New accounts or accounts with little history may have lower limits. You can check your sending limit by starting a payment and seeing what amount PayPal allows.
The payment itself is instant—the money appears in the recipient's PayPal Credit balance right away. There is no waiting period, no processing time, and no fee. This is different from sending money to a bank account, which can take one to three business days.
Using PayPal Credit balance for purchases
Once money lands in a PayPal Credit balance, the recipient can use it to buy things through PayPal. At checkout, they select PayPal Credit as their payment method, and the balance is drawn down. If the balance is not enough to cover the full purchase, PayPal Credit can lend them the rest, and they will owe that borrowed amount.
PayPal Credit charges interest on borrowed money, not on the balance you sent. If the recipient spends only the money you sent and does not borrow more, there is no interest charge. Interest kicks in only on amounts they borrow beyond what you gave them, and only if they do not pay the full statement balance by the due date.
What to do if a payment does not arrive
Payments to PayPal Credit are instant, so if the recipient says they did not receive it, check three things first. Confirm you sent it to the correct email address or phone number—if you made a typo, it went to someone else. Check your transaction history to see whether PayPal shows the payment as sent or pending. Ask the recipient to log into their PayPal account and look at their activity to see if the money is there but they missed the notification.
If the payment shows as sent in your history but the recipient cannot find it, contact PayPal support with the transaction ID (a number PayPal assigns to every payment). PayPal can trace where the money went and help recover it if it was sent to the wrong account. This is rare—most missing payments are the result of a typo in the email or phone number.
Frequently Asked Questions
Can I send money to PayPal Credit if the recipient does not have an account yet?
No. The recipient must have a PayPal account before you can send them money. If they do not have one, they can create a free account using an email address or phone number, and then you can send the payment. PayPal will not create an account for them on your behalf.
Is there a fee to send money to PayPal Credit?
No. Sending money to PayPal Credit is free. PayPal does not charge you or the recipient for the transfer. This is different from sending money to a bank account through PayPal, which may have a fee depending on your account type.
What if I send money to the wrong PayPal Credit account?
If the recipient has not accepted the payment, you can cancel it and the money returns to you. If they have accepted it, you cannot reverse it through PayPal. Contact the recipient directly and ask them to send the money back to your PayPal account. If they refuse or you cannot reach them, contact PayPal support, though they cannot force a refund once a payment is accepted.
Can the recipient transfer PayPal Credit balance to their bank account?
No. PayPal Credit balance can only be used for purchases through PayPal or transferred to another PayPal account. It cannot be withdrawn as cash or moved to a bank account. If the recipient needs cash, they would have to use the balance to buy something and then return it for a refund to their bank account—a workaround PayPal discourages.
Does sending money to PayPal Credit count against my sending limit?
Yes. Money sent to PayPal Credit counts toward your daily or monthly sending limit, just like any other payment. If you hit your limit, you cannot send more money until the limit resets or PayPal raises it based on your account activity.