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PayPal’s new Bill Pay feature can be a great way to earn travel rewards when paying your bills.

Link your travel rewards credit cards to PayPal Bill Pay, and you’ll earn points that can be redeemed for free or discounted travel whenever you pay your utilities, loans, taxes, insurance, etc.

You can use any credit card with PayPal Bill Pay as long as the credit card can be linked to your PayPal account.

So, if you would rather receive rewards like cash back or statement credits, you are free to choose those types of credit cards too.

In this blog post, we’ll show you how to set up PayPal Bill Pay and how to use it to earn travel rewards.

Where is PayPal Bill Pay Accepted?

PayPal Bill Pay is accepted by thousands of merchants in the United States.

It is secure and incredibly convenient. It only involves a few steps and can be done on your computer or through the PayPal App.

More merchants are added everyday, so if you do not see a particular merchant on PayPal Bill Pay today, make sure to check tomorrow.

What Bills Can You Pay Using PayPal Bill Pay?

Currently, the following bills can be paid on PayPal Bill Pay:

  • Utilities (Electricity, Garbage, Water, etc)
  • Credit Cards
  • Property Taxes
  • Home Mortgage
  • Phone
  • Insurance
  • TV & Internet
  • Property Management
  • Homeowners Associations
  • Medical and Dental
  • Memberships
  • Student Loans
  • and many more

What Types of Payment Methods Are Accepted By PayPal Bill Pay?

The following payment methods are currently accepted by PayPal Bill Pay:

  • PayPal Balance
  • Cash From Your Bank Account
  • Debit Cards
  • Credit Cards
  • Certain Gift Cards

Which Merchants Accept Credit Cards?

While there is a growing list of merchants added almost everyday, not all merchants accept credit cards.

For the past several months, I’ve been sending small trial payments to various agencies using credit cards and gift cards.

I also gathered data points (DPs) from the Travel Miles and Points Facebook Group on what works. Here are the results:

Accepted Credit Cards & Certain Gift Cards*:

  • Electricity
  • Garbage
  • Water
  • Student Loans (data point from the Facebook group)
  • Property Taxes (my particular county only)

Did Not Accept Credit Cards:

  • Home Mortgage
  • Credit Card Bills

*Gift Cards from have worked 50% of the time. Gift Cards from Staples and Office Depot did not. However, things can change anytime, so I encourage you to send small trial payments to various agencies using various gift cards yourself – they might just work!

Heads Up: The data points (DP) I presented above are limited to the particular companies I paid through this service. I have met people who were unsuccessful in sending electricity payments but were successful when they sent their credit unions mortgage payments. Each case is different, so I encourage you to gather your own DP.

How Much is the Credit Card Fee?

So far, the payments I’ve sent using my credit card and gift cards have not incurred any additional fees.

This can provide substantial savings since some merchants charge an extra percentage or two when paying with a credit card.

Which Credit Cards To Use?

There are a lot of different credit cards out there, and it can be hard to decide which one to use on PayPal Bill Pay.

But if you want to earn travel rewards when using PayPal BillPay, I recommend two types of cards.

  • Credit Cards that earn a generous sign-up bonus (SUB), whether it is travel miles or cash back.
  • Credit Cards that earn a category bonus when using PayPal.

Later in this post, I’ll review some recommended credit cards to use on PayPal Bill Pay.

How To Use PayPal Bill Pay On The Computer


Log in to your PayPal account and click “Pay Bills” on your dashboard. See the image below.


Next, click “Add a New Bill“.


Search for the name of the agency/merchant you would like to pay.


Add details from your bill.

Enter the numbers on your bill exactly as you see them – include dashes or any other symbols.


PayPal Bill Pay will notify you if the bill can be paid through the service. Click “Pay“.

In my example below, I sent property tax payments to my county using PayPal Bill Pay.


Enter the amount you wish to pay.


Add a payment method by linking a credit card.

Before you send your payments, please do the following:

  • First, make sure you have transferred all existing PayPal balances to your primary bank account unless you would like Bill Pay to draw payment from your PayPal balance first.
  • Then, unlink your bank account to avoid Bill Pay from taking money from your bank.
  • Lastly, set your credit card cash advance limit to “0” by calling the number on the bank of your card or secure messaging your bank.


Type in the amount you’d like to send, enter your credit card details, and click “Pay“.

Since the Chase Freedom Flex® Credit Card gives 5 points per dollar on up to $1,500 of spending this quarter (Q4, 2022), I sent the entire amount through Paypal to earn the maximum 7,500 Ultimate Rewards Points spending bonus for Quarter 4 (2022).


PayPal will send an email confirmation that the payment went through successfully and that the payment did not incur any additional fees. Sweet!

Compare that to the extra 2.5% fee my county charges when I pay using a credit card through their website.

STEP 10:

My recommended last step is to check whether the transaction was posted to your credit card as a PayPal purchase and if the payment was received by the agency you are paying.

Since I used my Chase Freedom Flex® Credit Card, I earned 5 Ultimate Rewards Points per dollar from my property taxes because the transaction was posted as a PayPal purchase. Score!

How To Use PayPal Bill Pay On The Mobile App


Go to the PayPal App, then click “Payments” at the bottom of the page.


Then, click “Bills“.


Look for the agency you would like to pay for by clicking the “+” sign (“Search by Name”) and follow the same steps outlined above.

Chase Freedom Flex

This no-annual-fee card gives 5% back for every dollar you spend at PayPal and Walmart this quarter (Q4, 2022) on up to $1,500 of combined 5X spend.

chase freedom flex

Use Any New Credit Card To Earn The Sign-Up Bonus (SUB)

If you are looking for a new credit card, I recommend applying for one with a generous sign-up bonus (SUB).

A SUB is a great way to earn a lot of points quickly – which can be helpful if you want to book a last-minute trip or redeem for more luxurious travel redemptions.

To earn a SUB, credit card companies will require you to spend a certain amount of money (minimum spending requirement) before you can be awarded those travel points. Therefore, you can use these new credit cards on PayPal Bill Pay.

If you need help determining which credit cards currently offer generous SUBs, I recommend reaching out to us at our free Travel Miles and Points Facebook Group, where members share their knowledge on their favorite travel rewards credit cards.

Join Our Free Travel Miles & Points Facebook Group

Earn 90,000 Chase Points

Currently, the no-annual-fee Chase Ink Business Cash® Credit Card and Ink Business Unlimited® Credit Card are offering an all-time high sign-up bonus of 90,000 points after spending $6,000 in 3 months.

8 Things to Know Before Using PayPal Bill Pay

Not All Merchants Are in PayPal Bill Pay

PayPal Bill Pay is a great way to pay your bills and earn rewards, but it’s important to know that not all merchants are in PayPal’s network.

This means you may be unable to use PayPal Bill Pay to pay some of your preferred merchants.

To save time, check if your loan provider, utility company, or county treasurer’s office is in PayPal’s network before linking your credit cards.

Pro-Tip: PayPal regularly adds more merchants to their Bill Pay service, so check the app periodically.

Not All Merchants Will Accept Credit Cards

Sadly, not all merchants will accept credit cards.

I tried to send money to pay my mortgage company, but my credit card was rejected.

However, as I stated above, I successfully paid my property taxes and utilities through PayPal Bill Pay using my credit cards.

PayPal Bill Pay Does Not Charge Fees

Yes, you read it right.

As of November 2022, I could send property tax payments and pay my utilities without a fee using my credit cards through PayPal Bill Pay.

Typically, my county charges an extra 2.5% when using a credit card. But this fee is somehow waived if paid through PayPal Bill Pay.

Let’s compare the fees incurred using the county website versus PayPal Bill Pay. Check out the table below.

Payment ($2,000 Property Taxes)% FeeAmount
PayPal Bill Pay0$0
Paying Using a Credit Card on the County Website2.5%$50

You Have to Link the Correct Credit Card

PayPal allows its users to link several credit cards.

It is common to get overwhelmed or confused when selecting which credit card to use for PayPal Bill Pay, so check the last four digits of the card you intend to use before hitting the “PAY” button.

Make sure you use either a new credit card or a card that gives a category bonus when using PayPal Bill Pay.

Make Sure Your PayPal Balance is $0

If you want to use your travel rewards credit cards, ensure no money is in your PayPal account.

If, by any chance, there is still money in your PayPal account, PayPal may deploy those funds first before using your preferred credit card.

Therefore, move all the remaining balance out of your PayPal account before using PayPal Bill Pay.

Unlink Your Bank Account

Occasionally, some merchants will reject a credit card payment and instead require cash.

If you do not want PayPal to draw money from your bank account when a credit card payment fails, make sure to unlink your bank before paying your bills.

PayPal will draw money from your linked bank account whenever another form of payment falls through.

Set Cash Advance to $0 or As Close to Zero

Your bank may process credit card bill payments as cash advances.

Therefore, we suggest you set your cash advance limit to the minimum amount allowed or $0 if the bank allows it. Chase currently allows a minimum cash advance limit of $100.

You can modify your credit card cash advance limit by calling the number on the back of your credit card or sending your bank a secure message.

Some Gift Cards Work, But Some Won’t

While researching, I tried using several gift cards to see which ones would be accepted by PayPal Bill Pay.

As of this writing, payments using gift cards from appear to be processed successfully through PayPal Bill Pay, but that can change anytime.

I suggest sending a small trial amount using your gift cards to determine if PayPal Bill Pay will accept them.

This Deal Might Eventually Die

Just like all the generous programs we have had in the past, including PayPal Bill Pay’s older brother – PayPal Key – we expect these fee-free payments to ultimately end in the future.

If this method works for you right now, I suggest you take advantage of it before it completely disappears.

Frequently Asked Questions (FAQs)

Why are gift cards from accepted and the ones from Staples are not?

This is due to the issuing bank. Gift cards from Staples or Office Depot are issued by Metabank and gift cards from are issued by Pathward.

PayPal may have hardcoded its system to reject gift cards issued by Metabank. This can change anytime, though.

Update: we are receiving data points that not all gift cards from are accepted by PayPal Bill Pay. I suggest sending a small trial amount first.

If I want to use 2 credit cards to pay my property taxes, can I split my payments using PayPal Bill Pay?

Yes, absolutely. In fact, I used 5 gift cards and 2 credit cards to settle a single property tax bill.

Final Thoughts

If you’re looking for a way to earn travel rewards, PayPal Bill Pay is a great option.

When you use PayPal Bill Pay to pay your bills, you’ll earn points that can be redeemed for free or discounted travel.

Without a doubt, this Bill Pay strategy has the potential to generate a substantial amount of points and miles when paying for expenses that traditionally charge extra fees when paid with a credit card.

Although this tactic may not work for everyone, anyone who likes earning travel miles and points should consider PayPal Bill Pay.

While different promotions to accumulate travel rewards have been sprouting left and right as of late, this new offering from PayPal has easily become one of my favorites. 

So, what are you waiting for? Why not give PayPal Bill Pay a try today?