Can I use PayPal credit to send money to a friend? There has been confusion regarding whether PayPal Credit is transferable or not. The correct information is that PayPal Credit transfer to family and friends works in the US but doesn’t in the UK. If you have UK PayPal, you won’t have the option to use your Credit account as your payment option.
That being said, since this transfer works in the US, this guide is your walkthrough so you properly move your Credit to your friend’s PayPal as funds.
What is PayPal Credit?
You probably already know what your PayPal Credit is. But read this; you might learn something.
PayPal Credit is a digital, reusable credit line that you can apply for wherever PayPal is accepted. It allows you to buy now and pay over time with 6 months of special financing on purchases of $99.00+. However, this promotional offer may have terms and conditions that vary depending on the merchant.
PayPal Credit is not a credit card, but rather a revolving line of credit linked to your PayPal account. You can use it to pay for goods and services online or in-store, as well as use it to pay your bills, subscriptions, or memberships online. But the big question remains: “can you send money to friends and family through PayPal credits?” Let’s get to that.
Can I use PayPal Credit to send money to a friend?
You can use PayPal Credit to send money to a friend but only in the US. It does not work in the UK, and my friends and I with UK PayPal do not find the option for selecting PayPal Credit as a payment option, except when buying from merchants. It does work for US PayPal.
If you’re looking to send money to a friend or family member, PayPal Credit can be useful. Just link your PayPal Credit account to your PayPal account, get approved, and you’ll be able to use it to transfer Credit as funds.
Make sure that you’re PayPal Credit account is in good standing. You’ll need to have an available balance in your account to use it to send money. Once you’ve confirmed that your account is active and has sufficient funds, you can proceed with linking it to your PayPal account.
PayPal Credit to send money comes with fees. The exact fees will vary depending on the amount you’re sending, but they typically include a percentage of the transaction amount and a fixed fee.
How to use PayPal Credit to send money to a friend
To send money to a friend using PayPal Credit, you need to first link your PayPal Credit account to your PayPal account. Once the accounts are linked, follow the steps below:
- Go to the Send & Request section of your PayPal account and select Send to Friends and Family
- Enter the amount you want to send
- Select PayPal Credit as your funding source.
- Next, enter your friend’s email address or mobile number
- Confirm the transaction details and hit send
When you use PayPal Credit to send money to a friend, it does come with fees, which we’ll discuss in the next section.
How does PayPal Credit work?
To use PayPal Credit, you need to have a PayPal account and a PayPal Credit account. You can apply for PayPal Credit by filling out a quick online application online and getting a credit decision in seconds. If approved, PayPal Credit is automatically added to your account with PayPal.
Once you have PayPal Credit, you can use it to pay for your online purchases wherever PayPal is accepted or send money to friends and family. Just choose PayPal at checkout and select PayPal Credit as your payment method. You can also use it to send money to friends and family by choosing Sending to a friend as the payment type and selecting PayPal Credit as your payment method.
You will receive monthly statements from PayPal Credit that show your balance, minimum payment due, and payment due date. Your statements is accessible online or through the PayPal app. You can also make payments online or by phone.
If you pay off your balance in full within 6 months on purchases of $99.00 or more, you will not be charged any interest. However, if you don’t pay off your balance in full within 6 months or if you miss a payment, you will be charged interest from the purchase date at a variable APR of 28.49%. The minimum interest charge is $2.00.
When you use PayPal Credit to send money to a friend in US dollars (USD), you’ll be charged the same fee that’s charged when you use a debit or credit card to send money with PayPal.
How much money can I send to someone using PayPal Credit?
The amount of money you can send to someone using PayPal Credit varies depending on your credit limit. PayPal Credit offers a credit line, and the amount you can send depends on how much of that line is available to you.
It’s important to keep in mind that there are fees associated with using PayPal Credit to send money. These fees include a percentage of the transaction amount, plus a fixed fee. The fees will vary depending on the amount you are sending, so make sure to check the fee schedule before sending money.
How long does it take for my recipient to receive the money I sent via PayPal Credit?
Typically, the recipient will receive the money instantly once the payment is sent. However, in some cases, it may take up to a few hours for the payment to process and for the funds to be available.
Why Can’t I pay a friend with PayPal Credit?
The most common reason why you may not be able to pay someone with PayPal Credit is that transferring PayPal Credit is not supported in your country, for example, the UK.
If the issue is that the recipient does not accept PayPal payments or does not have a PayPal account, you can try to find an alternative payment method. You may also want to encourage the recipient to create a PayPal account so that you can make future payments more easily.
If the issue is related to your PayPal Credit account, you should contact PayPal’s customer support team to determine the reason for the account limitation or suspension. They may ask you to provide additional information or documentation to resolve the issue.
Frequently Asked Questions (FAQs)
What can PayPal Credit be used for?
Apart from sending money to a friend, PayPal Credit can be used to make purchases, i.e., pay for goods and services online or in-store, as well as send money to friends and family. PayPal Credit also offers promotional financing options, such as no interest if paid in full within a certain timeframe.
Is there a limit to how much money I can send with PayPal Credit?
Yes, there is a limit to how much money you can send with PayPal Credit. The exact limit will depend on your creditworthiness and can vary from person to person. You can check your available credit limit on your PayPal Credit account.
Can I Send Money Internationally with PayPal Credit?
Yes, you can send money internationally with PayPal Credit, but there may be additional fees and currency conversion charges. Also, your country should be supported by PayPal Credit transfer. Otherwise, you won’t see the option to choose PayPal Credit as your payment option.
Read also: PayPal to Direct Express transfer in seconds
If anyone keeps saying you can’t use PayPal credit to send money to a friend “because they can’t”, they obviously do not have a US PayPal account or any other supported country. You can help resolve the controversy surrounding PayPal Credit in this regard by sharing this post.
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