Where to find and change your preferred payment method
Your preferred payment method is the card or bank account PayPal uses first when you send money or make a purchase. To change it, log into your PayPal account, go to Wallet, then select Preferred payment method. You'll see a dropdown list of every card and bank account you've linked to your account. Click the one you want to use going forward, then confirm the change.
The change takes effect when ready for new transactions. Any payment you've already started processing will use whatever method you selected at the time you began that transaction, not your newly preferred one. If you're mid-checkout when you change your preference, finish that purchase first, then the new preference applies to your next one.
You can change your preferred method as often as you want. There's no limit to how many times you switch, and PayPal doesn't charge you for changing it. The only requirement is that the payment method you're switching to must already be added to your wallet and verified.
Key Takeaways
- Your preferred payment method is the card or bank account PayPal charges first when you send money or shop online.
- Change it by logging in, going to Wallet, selecting Preferred payment method, and choosing a different card or bank account from the dropdown.
- The change applies only to new transactions you start after making the switch, not to payments already in progress.
- You can change your preferred method as many times as you want, and PayPal does not charge a fee for doing so.
- The payment method you choose must already be linked to your account and verified before you can set it as preferred.
Why you might want to change your preferred payment method
You might switch your preferred method because a card is about to expire, you want to use a different bank account to manage cash flow, or you're trying to avoid overdraft fees on one account. Some people rotate between methods to earn different rewards—a cash-back card for everyday purchases, a different card for larger transactions, or a bank account when they want to avoid card fees altogether.
If you've reported a card as lost or compromised, you should change your preferred method when ready so PayPal doesn't attempt to charge that card on your next transaction. Similarly, if you're closing a bank account, switch away from it before the closure date so PayPal doesn't try to pull funds from an account that no longer exists.
What happens if your preferred method fails
If PayPal tries to charge your preferred payment method and it declines—because the card is expired, the account has insufficient funds, or the card issuer rejected the charge—PayPal will not automatically fall back to your second choice. Instead, the transaction fails and you'll receive a notification that the payment couldn't go through.
You then have the option to retry the payment using the same method, or you can manually select a different payment method and try again. This is different from some other payment systems that automatically try a backup card. With PayPal, you're in control of which method gets charged each time.
If a payment fails repeatedly, check with your card issuer or bank to see if they're blocking PayPal transactions. Some financial institutions flag online payment platforms as high-risk and require you to contact them to unblock the charges.
Linking a new payment method before you can set it as preferred
Before you can set a card or bank account as your preferred method, it has to already be in your PayPal wallet. If you want to use a card or account you haven't added yet, you'll need to link it first.
To add a new card, go to Wallet, select Link a card, and enter the card number, expiration date, and CVV. PayPal will verify the card by charging it a small amount (usually $1 to $2) and then crediting it back. This verification typically completes within one to two business days, though sometimes it's when ready.
To add a bank account, go to Wallet, select Link a bank account, and enter your routing number and account number. PayPal will make two small deposits to your account within one to two business days. You'll then need to confirm those deposit amounts in your PayPal account to complete verification. Only after verification is complete can you set that bank account as your preferred method.
Removing a payment method you no longer want
If you have a card or bank account in your wallet that you don't use anymore, you can remove it. Go to Wallet, find the payment method you want to delete, and select Remove. PayPal will ask you to confirm the deletion.
You cannot remove your preferred payment method directly. If you want to delete the card or account you're currently using as preferred, you must first change your preferred method to something else, then delete the old one. This prevents you from accidentally leaving yourself with no payment method at all.
Removing a payment method doesn't affect any past transactions or refunds. If someone sends you money and it was originally charged to a card you've since deleted, the refund will go to your PayPal balance instead.
Preferred method versus default method: what's the difference
PayPal uses the term "preferred payment method" to mean the card or bank account that charges first when you make a payment. Some older PayPal documentation or help articles may refer to this as your "default" method, but they mean the same thing. PayPal has moved toward calling it "preferred" in recent years, but the functionality hasn't changed.
The preferred method applies only to payments you send out—when you're the one paying. It does not affect how people send money to you. If someone pays you through PayPal, the money goes into your PayPal balance regardless of what your preferred payment method is set to.
Frequently Asked Questions
Can I set a preferred payment method for specific types of transactions?
No. You have one preferred payment method that applies to all outgoing payments. If you want to use different cards for different purchases, you'll need to manually select which card to use at checkout each time, rather than relying on the preferred setting.
What if I change my preferred method in the middle of a payment?
If you change your preferred method after you've started a transaction but before you've confirmed it, the payment will still use the method you selected when you began the checkout process. The new preference takes effect only on the next transaction you start after making the change.
Does changing my preferred payment method affect my PayPal credit or financing options?
No. Your preferred payment method is separate from PayPal Credit or PayPal's installment plans. Those are financing products that you select independently at checkout. Changing your preferred card or bank account won't change which financing options are available to you.
Can I have multiple preferred payment methods?
No. You can only have one preferred payment method at a time. You can link multiple cards and bank accounts to your wallet, but only one can be set as preferred. The others remain in your wallet and you can select them manually at checkout if you want.
If my preferred method is a bank account, how long does the payment take?
Payments from a bank account typically take one to three business days to process, depending on your bank and PayPal's processing schedule. Payments from a credit or debit card are usually faster—often within minutes to one business day. If speed matters for a particular transaction, you may want to switch your preferred method to a card before checking out.