“Do Prepaid Cards Work For PayPal?” (2023)

PayPal is one of the most-used online payment platforms in the world. From the acquisition of Braintree and Venmo in 2014 to becoming the first foreign online payment provider in China, PayPal has made tremendous strides over the last few years.

PayPal processes a variety of payment methods, including credit cards, debit cards, bank accounts, PayPal Cash, and more. The platform also accepts prepaid cards, but only under specific terms.

PayPal accepts any prepaid card that has a Visa, Mastercard, American Express, or Discover logo. They do not accept store-specific gift cards, even if the purchase is being made with that store.

According to PayPal’s prepaid card terms, prepaid cards cannot be used for payments automatically pulled from PayPal accounts. For instance, if a subscription service is linked to a PayPal account, PayPal would not accept a prepaid card for monthly subscription payments.

Note that the prepaid card you use must be able to cover the entire transaction. If your transaction is $25 and your prepaid card has $20 on it, the payment will not process. You cannot split charges between multiple payment sources.

In our opinion, the best prepaid card to use with PayPal is PayPal’s own prepaid Mastercard. But Since PayPal accepts prepaid cards from American Express, Discover, Visa, and Mastercard, you can use just about any reloadable prepaid card with your PayPal account. The goal is to find the best prepaid card for your personal needs.

Do you want a card with free direct deposits? Do you need a card with free ATM options? How about a prepaid card with rewards or cashback? And what are the fees associated with each card?

Compare prepaid cards available for you to find the right option for your lifestyle. Here are our favorite prepaid cards for your consideration:

Discover® Cashback Debit

at the issuer'ssecure website

EXPERT'S RATING

★★★★★

5.0

Discover® Cashback Debit

5.0/5.0

About this rating

Our experts rate prepaid debit cards based on monthly fees, deposit requirements, rewards, approval ease, and convenient features like mobile deposits. We focus on providing the best value for those seeking a flexible, fee-conscious payment option. Issuers have no influence on our ratings.

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Ashley Fricker Senior Editor

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OVERALL RATING

4.6/5.0

Discover® Cashback Debit

4.6/5.0

About this rating

Our experts rate credit card offers based on factors like rewards, APRs, signup bonuses, fees, and approval rates, with a focus on benefits that provide the best value. We also consider cardholder needs such as credit-building potential, issuer reputation, and customer service. Our ratings are unbiased, updated regularly, and not influenced by issuers.

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Ashley Fricker Senior Editor

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Our Review »

• Cashback – Earn 1% cash back on up to $3,000 in debit card purchases each month
• No. Fees. Period. That means you won’t be charged an account fee on our Cashback Debit account.
• Early Pay – Get your paycheck up to two days early with no charge
• No Credit Impact - You can apply without affecting your credit score.
• Fraud Protection - You’re never responsible for unauthorized debit card purchases. If you suspect someone else has used your debit card without your permission, let us know.
• Member FDIC
• Fee-free overdraft protection
• No minimum opening deposit and no minimum balance
• Add cash into your account at Walmart stores nationwide
• Cash access at over 60,000 no-fee ATMs nationwide
• 100% US-based customer service available 24/7

• See application, terms and details.

Intro (Purchases)	Intro (Transfers)	Regular APR	Annual Fee	Credit Needed
N/A	N/A	N/A	$0	No Credit Needed

Brink’s Armored™ Account

at Netspend'ssecure website

EXPERT'S RATING

★★★★★

4.9

Brink’s Armored™ Account

4.9/5.0

About this rating

Our experts rate prepaid debit cards based on monthly fees, deposit requirements, rewards, approval ease, and convenient features like mobile deposits. We focus on providing the best value for those seeking a flexible, fee-conscious payment option. Issuers have no influence on our ratings.

See Our Review»

Ashley Fricker Senior Editor

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OVERALL RATING

4.1/5.0

Brink’s Armored™ Account

4.1/5.0

About this rating

Our experts rate credit card offers based on factors like rewards, APRs, signup bonuses, fees, and approval rates, with a focus on benefits that provide the best value. We also consider cardholder needs such as credit-building potential, issuer reputation, and customer service. Our ratings are unbiased, updated regularly, and not influenced by issuers.

See Our Review»

Ashley Fricker Senior Editor

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Our Review »

• Brink’s knows Security! 24/7 access to a suite of security benefits to help keep your account armored.
• Get access to over 100,000 Brink’s Money ATMs.
• Get paid faster than a paper check with direct deposit.
• Add funds to your Brink’s Armored Account and use Brinks Armored debit card anywhere Debit Mastercard is accepted.
• Account opening is subject to registration and ID verification. Terms & fees Apply. Deposit Account is established by Pathward®, N.A., Member FDIC.

• See application, terms and details.

Intro (Purchases)	Intro (Transfers)	Regular APR	Annual Fee	Credit Needed
N/A	N/A	N/A	Variable Monthly Fees	Not applicable

Chime®

at the issuer'ssecure website

EXPERT'S RATING

★★★★★

4.9

Chime®

4.9/5.0

About this rating

Our experts rate prepaid debit cards based on monthly fees, deposit requirements, rewards, approval ease, and convenient features like mobile deposits. We focus on providing the best value for those seeking a flexible, fee-conscious payment option. Issuers have no influence on our ratings.

See Our Review»

Ashley Fricker Senior Editor

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OVERALL RATING

4.1/5.0

Chime®

4.1/5.0

About this rating

Our experts rate credit card offers based on factors like rewards, APRs, signup bonuses, fees, and approval rates, with a focus on benefits that provide the best value. We also consider cardholder needs such as credit-building potential, issuer reputation, and customer service. Our ratings are unbiased, updated regularly, and not influenced by issuers.

See Our Review»

Ashley Fricker Senior Editor

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Our Review »

• Your Chime® Checking Account comes with a Visa® Debit Card, no monthly fees or minimum balance fees.
• Over 60,000 fee-free ATMs^¹ — more than the top 3 national banks combined!
• Get paid up to 2 days early with direct deposit, terms apply.^²
• Chime will spot you up to $200 on debit card purchases and cash withdrawals with no overdraft fees. Eligibility requirements and limits apply.^³
• Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank, N.A. or Stride Bank, N.A.; Members FDIC.
  ^¹Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
  ^²Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
  ^³Chime SpotMe is an optional service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account at least once every 34 days. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See Terms and Conditions.

• See application, terms and details.

Intro (Purchases)	Intro (Transfers)	Regular APR	Annual Fee	Credit Needed
N/A	N/A	N/A	$0	None

It only takes a few seconds to add a prepaid card to PayPal. Here are the instructions for adding a prepaid card online:

1. Go to the Wallet within your PayPal account.
2. Select Link a Card under Credit and debit cards.
3. Fill out the requested information and then save the card data.

Here are the instructions for adding a prepaid card to the PayPal app:

1. Log in to the PayPal app on your mobile device.
2. Select the gear in the upper-righthand corner to open your account settings. Then select Banks and Cards.
3. Click on the plus sign to add a payment method.
4. Select Debit or credit card. This will prompt you to add the card details and save the info to your PayPal Wallet.

Once you have your prepaid card saved in your PayPal Wallet, you can select it for an upcoming transaction. Just make sure that the card you select has enough funds available to cover the entire transaction. If the card only has enough funds for part of the transaction, it will be declined.

You do not need a PayPal account to process transactions through PayPal. If the merchant offers PayPal during checkout, select that payment option and proceed as a guest.

Enter the prepaid card number in place of a credit or debit card number. Then use your home address or shipping address for the billing address. As long as the card balance is enough to cover the total purchase price, the transaction should process.

Yes, PayPal now has the option to deposit cash into your PayPal account, just as you would with a bank account. The funds will be available within 15 minutes, and you can use them anywhere PayPal is accepted.

Here are the step-by-step instructions for adding cash to PayPal:

1. Open the PayPal app on your phone. If you do not have the app, you can download it for free and login as normal. You can also connect the app to your fingerprint to quickly open the app without entering your password.
2. In the bottom right corner of the app’s home screen, select the More option. Then select Add Cash at a store. The app will ask you to re-verify your identity with your fingerprint, PIN, or other login information.
3. Select the store you would like to use. Each store has a different service fee, so you can compare prices for retailers in your area. Most charge $3.95 to add cash to a PayPal account, but Walmart charges a $3 fee.
4. Once you select a store, you will see instructions for where to go with your deposit. For instance, the instructions for Walmart say to take your barcode to the MoneyCenter or Customer Service Desk, not a cashier. Select Generate Barcode at the bottom to get your code. The barcode will expire in 1 hour.
5. Deposit $20 to $500 at the retailer of your choice. If you need to add more funds, you will pay an additional service fee for subsequent transactions. You may deposit up to $1,500 per day and $5,000 per month.

In addition to adding cash to PayPal at a retailer, you can withdraw cash from your PayPal account. This service is only available at Walmart.

In the More section of the PayPal app, select Get cash at a store. Then enter the amount you want to withdraw, starting at $20. The app displays your available balance at the top for reference.

There is a daily withdrawal limit of $500 and a monthly limit of $3,500. Walmart charges a $3 fee per transaction. You’ll receive a barcode to use at the MoneyCenter or Customer Service desk, and the associate will give you cash corresponding to the request.

The PayPal Prepaid Mastercard® is available for free online or for purchase at select retailers. If you get a PayPal prepaid card online, it should arrive within seven to 10 business days. You can then use it anywhere Mastercard is accepted.

How to Load Funds onto the Card

There are several ways to add funds to a PayPal Prepaid Mastercard®. Most options are free, except for cash reloads at a store.

• Direct Deposit: Free deposits for paychecks. PayPal claims to process payments “up to 2 days faster” than a standard bank account.
• PayPal Instant Transfers: Instantly transfer funds from your PayPal account to your prepaid card to use at a physical register.
• Tax Refunds: Set up your PayPal Prepaid Mastercard as the deposit method for your state and federal tax refunds.
• NetSpend Reload Locations: Load money in person at over 130,000 reload locations. This service comes with a reload fee, see the cardholder agreement for details.

The minimum initial load amount is $10-$20, depending on where you get the card. The maximum initial load amount is $500. All retail location reloads have a maximum amount of $500, but direct deposits and instant transfers are not subject to that.

In total, you may have up to $15,000 in funds on your PayPal Prepaid Mastercard®.

Card Fees

For a full breakdown of the fees associated with the PayPal Prepaid Mastercard®, you will want to review the cardholder agreement. A few different fees are associated with the card, including a monthly fee, ATM fees, mobile check deposit fee, and a replacement card fee.

Make sure these fees align with how you intend to use the card, as heavy ATM usage could be costly.

How to Withdraw Funds

If you want to withdraw cash from your PayPal Prepaid Mastercard®, you can use an ATM, there is a small fee associated with an ATM withdrawal. You can also withdraw funds for free when you make a purchase at a store that offers cashback services.

For instance, if you were already making a purchase at Walmart, you could select Debit for the transaction type, enter your PIN, and choose how much cash back you would like to receive.

Maximum Spending and Withdrawal Limits

PayPal limits over-the-counter cash withdrawals and purchase values to $4,999.99 every 24 hours. In other words, you cannot spend more than $5,000 on the PayPal Prepaid Mastercard® per day.

ATM withdrawal limits are $325 per transaction and $940 per day. PayPal allows up to six ATM withdrawals in 24 hours.

Be mindful of the ATM’s withdrawal limits as well — if the ATM only allows $200 per withdrawal, you will need two transactions to withdraw $300, leading to twice the ATM fees.

In summation, yes, PayPal accepts prepaid cards. Which makes sense, considering it offers its own prepaid card.

We like the PayPal Prepaid Mastercard® because you can move money from your PayPal account onto this prepaid card in real-time. You can also add money to your account with the no-cost Direct Deposit service, and you will receive special offers and Payback Rewards when you shop at qualifying stores.