PayPal accepts American Express cards as a payment method, but how you use it depends on whether you're sending money, making a purchase, or linking it to your account

Yes, PayPal takes American Express. You can link an American Express card to your PayPal account and use it to fund payments, purchases, and transfers. However, PayPal treats American Express differently depending on what you're doing — the card works for some transactions but not others, and the fees vary.

The key difference is between using American Express as a funding source (to pay for something through PayPal) and using it as a payment method (when someone sends you money). Understanding which applies to your situation tells you whether your Amex card will work.

Key Takeaways

  • You can add an American Express card to your PayPal account and use it to pay for purchases and send money to other people.
  • PayPal charges different fees depending on the transaction type — personal transfers have no fee, but goods and services payments include a percentage plus a flat fee.
  • When someone sends you money to your PayPal account, they cannot choose American Express as the payment method; they must use a Visa, Mastercard, or bank account instead.
  • PayPal holds funds from American Express transactions for a longer period than other card types before releasing them to your account.

Using an American Express card to pay through PayPal

When you link an American Express card to PayPal, you can use it to fund payments to other PayPal users and to pay for goods and services from merchants who accept PayPal. The process is the same as linking any other card: go to your PayPal wallet, select "Link a card," enter your card number, expiration date, and CVV, and confirm the card with a small deposit that PayPal sends to your Amex account.

Once linked, your American Express card appears in your PayPal payment options. When you make a purchase or send money, you can choose it as your funding source. PayPal will charge your Amex card when ready for the transaction amount, and the charge will appear on your American Express statement within one to three business days, depending on your card issuer.

The fees you pay depend on the type of transaction. Sending money to another PayPal user for personal reasons (marked as "friends and family") has no fee. Paying for goods and services, or sending money for business purposes, triggers PayPal's standard transaction fee, which is currently 2.99% plus $0.30 for transactions in the United States. American Express cards are charged at the same rate as Visa and Mastercard for these transactions.

Why someone cannot pay you with American Express through PayPal

PayPal does not allow the person sending you money to choose American Express as their payment method. When someone initiates a payment to you, their options are limited to Visa, Mastercard, or a bank account. This restriction applies whether they are sending you money as a personal transfer or paying you for goods and services.

The reason for this limitation is not publicly stated by PayPal, but it reflects how PayPal's payment network is structured. Visa and Mastercard have different processing agreements with PayPal than American Express does. If you need to receive money from someone and they only have an American Express card, they would need to use a different payment service or transfer the funds through their bank account instead.

How PayPal holds American Express funds differently

When you receive money through PayPal that was funded by an American Express card, PayPal places a hold on those funds before releasing them to your account. This hold typically lasts 3 to 5 business days, though it can extend to 7 days in some cases. During this time, the money is in your PayPal account but you cannot withdraw it to your bank account or use it to make purchases.

PayPal applies this hold because American Express transactions have a higher dispute rate than Visa and Mastercard transactions. The hold gives PayPal time to confirm the transaction is legitimate before the funds become available to you. Once the hold period ends, the money moves to your available balance and you can transfer it to your bank account or use it when ready.

This hold does not explore when you use your own American Express card to fund a payment. The hold only affects money you receive from others when their American Express card was the funding source.

Linking and unlinking an American Express card

To add an American Express card to PayPal, log into your account, go to Wallet, and select "Link a card or bank account." Enter your card details and confirm the card by verifying a small deposit PayPal sends to your Amex account. This deposit appears within one to two business days. Once you confirm the amount, the card is active and ready to use.

To remove an American Express card from your PayPal account, go to your Wallet, find the card in your list of payment methods, and select "Remove." PayPal will ask you to confirm the removal. If you have pending transactions funded by that card, PayPal may not let you remove it until those transactions are complete. Once removed, you cannot use that card to fund PayPal payments, though PayPal keeps a record of the card for dispute purposes.

American Express and PayPal's dispute process

If you dispute a transaction you made through PayPal using your American Express card, the dispute goes through both PayPal's resolution center and American Express's chargeback process. You should first try to resolve the issue through PayPal's Resolution Center, where you can open a dispute within 180 days of the transaction. PayPal will investigate and may side with you or the seller.

If PayPal's decision does not satisfy you, you can file a chargeback directly with American Express. American Express will review the case separately and may reverse the charge on your card. However, filing a chargeback after using PayPal's resolution process can result in your PayPal account being limited or closed, because PayPal views chargebacks as a violation of its user agreement. Always exhaust PayPal's dispute process first before contacting your card issuer.

Frequently Asked Questions

Can I use PayPal to pay my American Express bill?

No. PayPal does not allow you to pay your American Express bill directly through PayPal. You must pay your Amex bill through American Express's website, mobile app, or by phone. You can use PayPal to send money to someone else, but not to pay credit card companies.

Does PayPal charge a fee when I use my American Express card?

PayPal does not charge you a fee for linking or using an American Express card. However, American Express may charge you a cash advance fee if PayPal's transaction is classified as a cash advance rather than a purchase. Most PayPal transactions are classified as purchases, so this is uncommon, but check your Amex terms or contact American Express if you see an unexpected fee.

Why is my American Express card being declined on PayPal?

Your Amex card may be declined if the card is expired, the CVV is incorrect, the card is not yet confirmed with PayPal, or American Express has flagged the transaction as suspicious. Contact American Express to confirm the card is active and not blocked. If the card is confirmed active, remove it from PayPal and re-add it by following the linking process again.

Can I use a PayPal credit card to pay with American Express?

PayPal does not issue a credit card that works with American Express. PayPal offers a debit card and a credit card through partner banks, but these are separate products and do not integrate with American Express. You would need to link your American Express card directly to PayPal to use it as a payment method.