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PayPal’s new Bill Pay feature allows PayPal members to use credit cards to pay their bills without credit card fees.

It can be a great way to earn cash back or travel bonuses from certain credit cards.

Link your 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.

If you would rather receive rewards like cash back or statement credits, you can choose those types of credit cards too.

You can use any credit card with PayPal Bill Pay as long as the credit card can be linked to your PayPal account. Some gift cards are also accepted.

In this blog post, we’ll show you how to set up PayPal Bill Pay and how to pay your bill using a credit card.

Where is PayPal Bill Pay Accepted?

Thousands of merchants in the United States accept PayPal Bill Pay. It is secure and incredibly convenient.

Setting it up only involves a few steps and can be done on your computer or through the PayPal App.

More billers and merchants are added frequently, so check again if you do not see a particular merchant on PayPal Bill Pay today.

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?

PayPal Bill Pay currently accepts the following payment methods:

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

Which Billers & Merchants Accept Credit Cards Via PayPal Bill Pay?

While there is a growing list of billers and merchants added almost every day, not all merchants accept credit cards.

For several months, I’ve been sending small trial payments to various agencies using credit 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* Through PayPal Bill Pay:

  • Electricity
  • Garbage
  • Water
  • Student Loans (data point from the Facebook group)
  • Property Taxes (my particular county, but check yours periodically)

Did Not Accept Credit Cards:

  • Home Mortgage
  • Credit Card Bills

Accepted Debit Cards Through PayPal Bill Pay:

  • All bills, including certain credit cards

*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 When Using PayPal Bill Pay?

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 or cash back 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 on PayPal Bill Pay.

How To Use PayPal Bill Pay On The Desktop


Log in to your PayPal account and click “Pay Bills” on your dashboard.


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, including dashes or 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.

Recommended Credit Cards

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

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

A SUB is a great way to earn many 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 contacting us at our free Travel Miles and Points Facebook Group, where members share their knowledge on their favorite travel rewards credit cards.

You can also fill out this credit card consultation form, and a member of our team will reach out to you shortly.

Use A Credit Card That Gives a Bonus When Using PayPal

For the past several years, the Chase Freedom Flex credit card has been giving 5X points per dollar on PayPal purchases one quarter a year.

We announce this PayPal category bonus in the Travel and Miles Facebook Group. It is free to join!

Join Our Free Travel Miles & Points Facebook Group

Tips 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 and billers are currently in PayPal’s network.

This means you may be unable to use PayPal Bill Pay to pay some of your preferred billers and 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 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 March 2023, 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 credit cards on PayPal Bill Pay, 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, so remove it from your PayPal wallet before using PayPal Bill Pay.

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, certain payments using gift cards from and office supply stores 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.

Pay Early

Please remember that Paypal Bill payments may take several days to reach your selected merchant and biller.

Submit your payment at least one week before the due date to avoid incurring late credit card payment fees.

Send a Small Payment

For new billers and merchants, it is recommended to send small payments of $1-$5 to determine if PayPal Bill Pay works with them.

Ensure the transaction is successful and the amount is reflected in your biller’s account before sending additional payments.

Once the test amount is processed, you may proceed to pay the remaining balance using Paypal Bill Pay.

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 Pathward issues gift cards from

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.

Update #2: we just received new data points that gift cards purchased from Staples work when paying utilities.

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

Yes, absolutely. I used five gift cards and two credit cards to settle my property tax bill.

Final Thoughts

Paying your bills through PayPal Bill Pay is a great way to avoid incurring credit card fees when paying for bills.

When you use a credit card that gives a generous sign-up bonus when using PayPal Bill Pay to pay your bills, you can earn a significant amount of points.

Without a doubt, this PayPal Bill Pay strategy has the potential to generate a substantial amount of cash rebates or travel rewards 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 something back from credit card purchases should consider PayPal Bill Pay.

While different promotions to accumulate cash back or travel rewards have sprouted left, and right lately, 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?

EDITORIAL DISCLOSURE – Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. The content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.