PayPal accepts American Express cards, but how you can use them depends on which PayPal account type you have and what you're trying to do.
If you have a personal PayPal account, you can link an American Express card to send money to other people and make purchases online at stores that accept PayPal. You can also use an Amex card to add funds to your PayPal balance. However, PayPal does not let you receive money directly into an Amex card — only into a linked bank account or PayPal balance.
If you have a PayPal Business account, the rules are similar: you can link an Amex card to pay for business expenses and send money, but you cannot receive customer payments directly to the card. Payments you receive go to your business bank account or PayPal balance instead.
The key difference between personal and business accounts is that business accounts give you more detailed transaction records and the ability to create invoices, but both types treat Amex cards the same way — as a way to spend money, not receive it.
Key Takeaways
- You can link an American Express card to a PayPal account to send money and make online purchases.
- PayPal will not deposit money directly into an Amex card; payments you receive land in your bank account or PayPal balance instead.
- Both personal and business PayPal accounts accept Amex cards for outgoing transactions in the same way.
- Adding funds to your PayPal balance using an Amex card counts as a purchase, so your card issuer may charge a cash advance or transaction fee.
How to link an American Express card to PayPal
To add an Amex card to your PayPal account, log in and go to your Wallet or Card settings — the exact location depends on whether you're using the website or the mobile app. Select "Link a card" or "Add a card," then enter your card number, expiration date, and CVV. PayPal will ask for your billing address to match what American Express has on file.
After you submit the information, PayPal may place two small temporary charges on your Amex card — usually under $2 each — to verify the card is real and belongs to you. Check your American Express statement in a few days and enter those amounts back into PayPal to confirm the card. Once verified, the card is ready to use for payments and transfers.
If you're linking the card through the PayPal mobile app, the process is identical except you may be able to photograph the card instead of typing the number manually.
Fees when you use an Amex card with PayPal
PayPal itself does not charge you a fee for linking or using an American Express card to send money to other PayPal users. However, American Express may charge you a fee depending on what you're doing.
If you use your Amex card to add money to your PayPal balance, American Express may treat this as a cash advance and charge you a fee — typically 3 to 5 percent of the amount, though this varies by your card and issuer. You should check your Amex cardholder agreement or call the number on the back of your card to find out what fee applies to you.
When you use your linked Amex card to pay a store or send money through PayPal, no special fee applies — you pay the same way you would if you swiped the card in person. The only exception is if you're sending money internationally; PayPal charges a currency conversion fee for that, but it applies to any payment method, not just Amex.
Why PayPal won't let you receive money into an Amex card
PayPal's rule against depositing money directly into credit cards — including American Express — exists because credit cards are designed for borrowing, not receiving deposits. When PayPal sends money to a credit card, it would show up as a credit (a reduction in what you owe), not as a deposit into an account you control.
This creates problems for both PayPal and Amex. PayPal would have to manage credits across millions of different card accounts and issuers, each with different rules about how credits work. American Express would have to process these deposits through its credit system rather than a bank account system, which is not how the network was built.
Instead, PayPal requires you to receive money into a bank account or keep it in your PayPal balance, where it sits as actual funds you can withdraw or spend whenever you choose.
Alternatives if you want to use Amex with PayPal
If you want to receive money through PayPal but prefer to use your American Express card, you have two options. First, you can receive the money into your PayPal balance and then use your linked Amex card to withdraw it — though this is backwards and defeats the purpose. Second, you can link a bank account to PayPal instead and have payments deposited there, then use your Amex card to spend that money as usual.
If you're a business owner and want to accept credit card payments from customers, PayPal offers a separate service called PayPal Checkout or PayPal Payment Processing. Customers can pay with any card, including Amex, and the money lands in your bank account. You do not need to link your own Amex card for this to work.
What happens if your Amex card expires or is closed
If your American Express card expires, PayPal will stop letting you use it for payments. You can update the expiration date in your PayPal wallet if Amex sent you a replacement card with the same number, or you can remove the old card and link a new one.
If you close your Amex account entirely, PayPal will mark that card as inactive in your wallet. You should remove it from your account to avoid confusion. Any money already in your PayPal balance stays there and is not affected by what happens to your linked cards.
Frequently Asked Questions
Can I use PayPal to pay my American Express bill?
No, PayPal does not work with Amex's bill payment system. To pay your Amex bill, you must go directly to the American Express website or call the number on your card. Some banks let you pay credit card bills through their own bill pay service, so check with your bank as well.
Will PayPal report my Amex transactions to credit bureaus?
No. PayPal does not report your payment activity to credit bureaus. Only American Express reports your Amex card activity to the bureaus, just as it would if you swiped the card anywhere else. Using PayPal does not change how Amex reports your account.
What if PayPal declines my American Express card?
PayPal may decline an Amex card if the card is expired, the billing address does not match what Amex has on file, or you have reached your card's spending limit. Contact American Express to confirm the card is active and has available credit, then try linking it again. If the problem continues, try a different payment method.
Can I use a PayPal Business Debit Card to pay with my Amex?
No. The PayPal Business Debit Card is a separate card that draws from your PayPal balance. You cannot link an American Express card to the debit card itself. However, you can link your Amex to your PayPal account and use it to add funds to your balance, which then appears on the debit card.