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PayPal and your debit card

How do PayPal and your debit card work together? Find out in this comprehensive guide.

PayPal is an online payments system that provides a fast and easy way to send and receive payments via the world wide web. By linking your PayPal account to your debit card, credit card or bank account, you can pay for your online purchases and send quick and convenient international money transfers.

If you’re just getting started with PayPal, it’s important to understand exactly how the payment system works in order to get the most out of it. This article looks at PayPal and debit cards, including how you can link your debit card to your PayPal account.

Debits cards you can link to PayPal

Rates last updated February 26th, 2018
$
Name Product Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Monthly Account Fee Product Description
NAB Classic Banking
Visa
$0
$0
$0 monthly account fees.

Tap and pay with your NAB Visa Debit card, NAB Pay for Android or NAB PayTag for iPhone.
ANZ Access Advantage
Visa
$0
$2,000
Apple Pay, Android Pay & ANZ Mobile Pay.
Take advantage of Apple Pay by linking your ANZ Visa Debit card to an eligible iPhone and seamlessly pay for purchases with your phone.
St.George Complete Freedom Account
Visa
$0
$2,000
$50 cash bonus
Waived account keeping fees when minimum deposit is met with no minimum balance. Get a $50 cash bonus if you open a new account and deposit $250 within the first 45 days (conditions apply)
Westpac Choice
Mastercard
$0
$2,000
$0 ATM withdrawal fee at 50,000+ ATMs globally.
Via Westpac's Global ATM Alliance. Get cash without your debit card (conditions apply).
Bank of Melbourne Complete Freedom
Visa
$0
$2,000
$50 cash bonus
Get cardless cash and shop securely with your Visa debit card. Customise SMS and email alerts. $50 cash bonus to new account holders if you deposit $250 within the first 45 days (conditions apply)
BankSA Complete Freedom Account
Visa
$0
$2,000
$0 ATM withdrawal fee at 50,000+ ATMs globally

Take advantage of Westpac's Global ATM Alliance to withdraw money for free at 50,000+ international ATMs. Enjoy fee-free banking if account conditions are met.

Compare up to 4 providers

How does PayPal work?

PayPal’s online payments system allows you to send and receive money online, anywhere in the world. It uses encryption software to help users send electronic money transfers to other PayPal customers within Australia and around the globe, allowing you to instantly pay for purchases online and on your mobile.

There are three ways you can pay for purchases through your PayPal account:

  • Using your PayPal balance. This is always the first option when buying something online.
  • Using your bank account. You can link your transaction account to your PayPal account to pay for purchases online.
  • Using your credit or debit card. You can also link your debit card or credit card to your PayPal account to fund purchases.

This allows for fast and easy payment at checkout on eBay and most other online retailers.

You can also send money to anyone with a PayPal account simply by entering their email address or mobile number, the amount you wish to send and the transfer currency.

How do you get a PayPal debit card?

paypal-debit-cardYou can link Mastercard and Visa debit cards to your PayPal account. Debit cards provide access to the money in your transaction account, so linking your debit card to your PayPal account effectively allows you to use your bank balance to instantly pay for online purchases.

Debit cards are a standard feature on most transaction accounts from banks, credit unions and building societies all across Australia. So if you have a Visa debit card or Mastercard debit card attached to your bank account, you will be able to link it to your PayPal account.

However, there are a few key terms and conditions you should be aware of:

  • A debit card can only be linked to one PayPal account at a time.
  • Your card must have a card verification code (CVV), which is usually a three-digit code displayed on the back of the card.
  • The billing address you provide to PayPal must match exactly the billing address on your debit card statement.

How do I link my debit card to my PayPal account?

It’s easy to add a Visa debit card or Mastercard debit card to your PayPal account. All you need to do is follow a few simple steps:

  1. Login to your PayPal account with your email address and password
  2. Click the “Wallet” link near the top of the page
  3. Under “Credit and debit cards”, click on “Link a card”
  4. Make sure the “Debit” option is selected and enter your card number, expiry date, CVV and billing address
  5. Click “Save”

You will then need to confirm your card with PayPal by requesting a PayPal code. To do this you will need to:

  1. Login to your account
  2. Click “Settings” and then “My Money”
  3. Click “Update” beside “Credit and debit cards”
  4. Click “Confirm My Card” and then “Continue”

Once you’ve completed these steps, a $2.00 charge will be applied to your debit card. This is nothing more than a temporary charge to confirm that your card is able to be used with PayPal, and it allows PayPal to send you a unique code on your card statement. Once you have confirmed your card, this charge will typically be refunded within a few minutes, but the process can take up to 30 days with some card providers.

You will then need to locate this $2.00 charge and the accompanying four-digit code on your debit card statement, and enter the code to confirm your card. You must:

  1. Login to your account and click the Profile icon in the top right corner
  2. Click “My financial info” and then click “Update” beside “Credit and debit cards”
  3. Click “Enter PayPal Code” and then type in your four-digit code
  4. Click “Confirm Card”

Your debit card is now ready to use with your PayPal account.

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How do you add a credit card to PayPal?

You can also link a credit card to your PayPal account to pay for online purchases. PayPal accepts Mastercard, Visa, Discover and American Express cards, and the process of adding a card to your account is simple. All you have to do is follow these steps:

  1. Login to your PayPal account
  2. Click the “Wallet” link near the top of the page
  3. Click “Link a card” under “Credit and debit cards”
  4. Make sure the “Credit” option is selected and enter your card number, expiry date, CVV and billing address
  5. Click “Save”

Once these steps are complete you will then need to confirm your card. Just like with a debit card, you’ll need to request a code from PayPal by completing a few simple steps:

  1. Login to your account
  2. Click “Settings” and then “My Money”
  3. Click “Update” beside “Credit and debit cards”
  4. Click “Confirm My Card” and then “Continue”

An $2.00 fee will be charged to your credit card (and later refunded), and will show up on your credit card statement accompanied by a four-digit code. This code needs to be entered into your PayPal account to confirm your card. To do this you need to:

  1. Login to your account and click the Profile icon in the top right corner
  2. Click “My financial info” and then click “Update” beside “Credit and debit cards”
  3. Click “Enter PayPal Code” and then type in your four-digit code
  4. Click “Confirm Card”

Your credit card is now linked to your PayPal account and can be used to fund online purchases.

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How can I remove a debit card or credit card from my PayPal account?

If you no longer want your debit card to be linked to your PayPal account, simply follow these steps:

  1. Login to your PayPal account with your email address and password
  2. Click the “Wallet” link near the top of the page
  3. Click the card you’d like to remove and then click “Edit”
  4. Click “Remove card”
  5. Confirm that you want to remove the card from your PayPal wallet

PayPal and debit cards FAQ

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