Prepaid credit cards can provide a convenient means for your business to make online purchases through PayPal. As long as the prepaid card has a Visa, MasterCard, Discover or American Express logo, you can use the card on any website that accepts PayPal. However, transferring money between your PayPal account and a prepaid card can be more difficult. While some prepaid cards can be linked to your PayPal account, others can't, depending on the policies of the card issuer. Generally, you must register a prepaid card under your name and address before you can link it to your PayPal account.
Making Purchases
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Step 1
Select PayPal as the payment method when making a purchase on a website that accepts PayPal. The website will transfer you to the PayPal payment interface.
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Step 2
Select "Debit/Credit Card" from the options, and then enter your prepaid credit card information. PayPal will only accept prepaid credit cards with a Visa, MasterCard, Discover or American Express logo.
Step 3
Click "Review and Continue" to see a summary of the transaction, and then click "Confirm and Pay." You must have enough money on your prepaid card to cover the full amount of the charges; otherwise, the card will be declined. You cannot apply the balance on your card as a partial payment.
Link to PayPal Account
Step 1
Check your prepaid card for a phone number or website address you can use to register the card. Register the card using the same name and address you use for PayPal.
Step 2
Log in to your PayPal account and hover your mouse over the "Profile" tab. Select the "Update Card" option.
Step 3
Activate the drop-down menu next to "Card Type" and select either "Visa," Mastercard," "Discover" or "American Express," depending on the type of prepaid card you are adding.
Step 4
Enter the credit card number, expiration date and the card verification number. For Visa, MasterCard and Discover, the card verification number is the last three digits of the number on the back of the card. For American Express, the card verification number consists of the four digits in small print on the right side of the card.
Step 5
Check your PayPal billing address shown on the screen and make sure it matches the address registered to the prepaid card.
Step 6
Click the "Add Card" button. PayPal will electronically verify the billing address on file with the card company. If the addresses match, the card becomes linked to your PayPal account. You will be able to make payments on PayPal using the prepaid card as the funding source; however, you may not be able to transfer money to or from the card. Depending on the type of card, you may be able to lift those limits by going through PayPal's expanded use verification process.
Step 7
Hover your mouse over the "Profile" tab and select the "My Money" option.
Step 8
Click the " Complete Expanded Use Enrollment" link next to the entry for the prepaid card. Some cards are not eligible for expanded use enrollment, so you may not see this link.
Step 9
Click "Get Number," and then click "Continue." PayPal will make a small charge to the card, which will be returned later once the card is verified.
Step 10
Check your prepaid card's billing statement for the PayPal charge. Next to the line item you should see a four-digit code. If you are able to view your account statement online, the code should appear within two to four days; otherwise, you'll have to wait for your statement to come in the mail.
Step 11
Log in to your PayPal account and click the "Complete Expanded Use Enrollment" link on the Overview page.
Step 12
Enter the four-digit code and click "Submit" to verify your card.