Apr 19, 2008
Tip and Trick Editorial

Credit Card Cannot Be Used for PayPal Payment Error

When purchasing or buying products and services online, PayPal is one of the most commonly used payment gateway used by the e-commerce sites to allow customer to pay for the invoices. PayPal secure payment allows users to pay with their PayPal account balance or direct debit from bank account if registered, or by using credit card such as Visa, MasterCard, Discover, and American Express.

However, when users attempt to make a payment by using credit card without logging in to PayPal account, occasionally PayPal will reject, or doesn’t accept the credit card users desired to use with the following error message:

The credit card you entered cannot be used for this payment. Please enter a different credit card number.

The credit card you entered cannot be used for this payment.

The issue is little tricky because the rejection may happen with credit card which previously accepted and worked properly, then suddenly stopped working, or worse, payment will not be accepted even if user changes or switches to any other credit cards.

There are many possible causes that can result in such credit card rejected error, and PayPal doesn’t give specific explanation on how to resolve the problem and make the payment goes through processing again, with the same or different credit card. Here’s some explanations and possible resolutions that suggested by users on Internet.

Credit Card Is Linked or Associated with a PayPal Account

Many believes the credit card is not accepted by PayPal when using it not signing into PayPal account is that the credit card is already been used in a PayPal account. If you’re using a credit card that’s linked or assigned to a PayPal account, try login to PayPal during payment process. You can change the source of fund to make the payment after logged in to use credit card instead of PayPal balance.

Credit Card Is Previously Used in PayPal Account or Assigned in Closed PayPal Account

PayPal remembers a credit card details even when it’s already been removed from the account. The information also been remembered even if PayPal account which linked to the credit card is closed and deleted. In this case, try another credit card, or assigned the credit card to a PayPal account, and pay with account logged in.

PayPal Limit on Non-Member Credit Card Usage

According to PayPal source, there is a limit based on the number of times, the amount of the transactions, the type of merchandise being sold that a credit card can be used within the system without having to verify ownership by opening an account. The restriction is for security and fraud protection reasons. There is no workaround to this limitation, but you should be able to use another credit card. If there is problem, try using another email address. Else, register an PayPal account.

Credit Card or Email Address Raises Flag in the Transaction

Closely link to reasons above, where some part of the transaction raises flag on the server that stop the payment. Two possible flags are on credit card or email address. Try changing either credit card or e-mail address or both when attempting to pay again.

Cookies Problem

Try using another web browser and/or delete cookies and attempt to pay with PayPal gateway using credit card again.

Credit Card Is Not Confirmed in Account

Contrary to some of the reasons above, if the credit card has been linked to an account, but not yet confirmed, try to complete all credit card information such as Card Verification Number or Security Code, and confirm the card by entering the PayPal code shown on the credit card statement on special refundable charge by PayPal.

In all case, the problem won’t arise if you add the credit card to PayPal account, and use it as funding source to pay the transaction through PayPal account.

  • Abdu

    Hi

    I’m living in a country that paypal does not support credit cards from , and I really need to use paypal “just for ebay ” , i made a paypal account as if i’m from US , I already have a us address for shipping , I also have a US phone number forwarded to my laptop . do you guys have any solution for my case ? I was thinking if there is a bank ” say in the US ” that allows me to create an account ,and I put money in that bank account via my visa card , and then link my bank account to paypal , is that possible ? do you have any other trick ?
    thanks

  • paman

    I have another tip mate, I got the same error message. I looked for solutions all over the net but couldn't find it until I realize that it is a simple problem, the spending limit was lower than transaction price. I solved it by changing the credit/debit card limit to be over the transaction price. Problem solved! :)

  • Mattias

    Hi to reply to JAson, im using a prepaid card and that doesnt matter it works like a real mastercard/visa or whatever, so fuck that long line of yours cuz im having this problem on my prepaid.

  • Bret

    I just won 3 Pokemon games for my GBA, but unfortunately, an error keeps popping up every time I input my credit card info, yet the info is correct. The error was:

    "The card you entered cannot be used for this payment. Please enter a different credit or debit card number."

    Now I can't use my Paypal account since it's under a limited access, so I decided to input my CC info instead (by using the "Don't have a Paypal account" option), but everytime I use my card, the same error pops up.

  • Ephraim

    F*CK PAYPAL.

  • rachel

    Can someone please help me – i feel like crying. I have found out today that my merchant bank account was closed two weeks ago by mistake! I thought it would be ok as paypal can take payments when people do not have paypal accounts. It turns out I amhaving the same problem as yuo have mentioned. That same irritating message comes up. I phoned paypal and as someone said earlier they were less than useless. I am at my wits end – I cannot afford to lose so many orders. Does anyone know a way around this? I dont want to have to try and tel my custoemrs to diable cookies as some of them might not inderstand and also think it a bit dodgy. any advice is appreciated

    Thanks

  • Bruce Crisp

    Using IE, I had been getting the message ("You cannot use this credit card for this transaction.") for weeks. Called PayPal support and they told me that my credit card was being rejected and that I should call my bank. However, I knew my credit card was o.k. I finally realized the problem might be that I was blocking third party cookies. Sure enough, after I allowed 3rd party cookies in the IE settings (tools, Internet Options, Privacy, Advanced), my PayPal transaction (using the same credit card) went though without a problem. Perhaps this is the cause of other people's PayPal problems as well. Thanks to others for their comments too. Bruce

  • Devon

    I just tried to buy something through Paypal for a game. And I got the above mentioned error. Just wondering (and I ask here because Ive noticed help is non-existant) Was I charged? Is my card still secure? Is there anything I need to worry about? Im new to this whole buying online thing and kinda paranoid about it. Little details: I dont have a paypal account, it was just a "use your credit card" to pay etc etc.

  • Michele Prutzman

    i would have to agree with some of the comments above.

  • Vic

    All my sales going through PP nose dived after newyear. Suddenly everybody were complaining that their cards were rejeced. Even AMEX!! Paypal support is a JOKE!! I lost tons of money january 2010.. They SUCK BIG TIME

  • Si

    btw the limit on transaction is 10 in Europe – part of the "paypal optional" option.

    It would be nice if more sellers(and retailers!) ditched paypal that doesn't easily allow people to pay properly with a credit card like the majority of payment processors out there!

  • Alejandro

    same problem as martin please help!

  • martin

    I am trying to buy something off ebay. I have had no problems for years, but now it is saying

    'this credit cannot be used…'

    then when i try and pay using another card it says

    'this card is already linked to your account…'

    which i know it is not. Getting very annoyed as cannot purchase. Please help.

  • http://www.southportfriends.co.uk/forums/ Argie

    Thanks for this info; ran into the issue lately with a regular customer who pays by CC.

    Paypal's international-rate 'helpline' was absolutely no help WHATSOEVER, worse than useless, I ended up promising to complain formally to the FSA. Not for the actual problem itself, but for their utter, persistent and complete refusal to offer any worthwhile assistance of any kind at all. It is like speaking to a chimp; if you're thinking about approaching them for assistance, take my advice, save yourself your blood pressure and the cost of the call.

    This is a pretty serious issue really, ends up losing you your best customers!!! Paypal WAKE UP. I wouldn't mind but their charges aren't exactly low, are they?

  • JAson

    Get a prepaid credit card, greendot cards are real nice, you can purchase and reload them and as a super plus, for now until paypal starts rejecting them, you can log into greendot site once you activate a card you get locally at walmart or someplace, then you can access the routing and account number and add them as bank accounts in paypal. And you can use the same card to add as credit card under paypal, so 1 card doing both action under a verified business account is really nice, i need a new account, i get a new card. They are tied and you register them with your social, so they are liek a real card in your name.

    From my experiences with testing live transaction when building my custom cart for ipn, i fins that even these when not tied to paypal account get rejected on the 4th time in 1 hour, after that seems i can do another 3 times b4 it gets rejected again. I refund the 5 cent transaction so i dont know if after an hour im allowed because i reduced the number , but i can get it working when i really need to, and changing phone number and email seems to always help too.

  • Mike

    Actually, this problem can occur and does alot even when credit card is added and confirmed to a paypal account. This gets highly annoying when trying to buy something from ebay and after being transferred to paypal login, you login and it says "This credit card cannot be used for this transaction. Please add a bank account to pay for this transaction." Then it seems if you wait 24hrs it will go through, but it won't allow you to purchase anything via credit card for atleast 3days afterwards. This security issue is really something they need to allow users to select to bypass. I find it happens alot on purchases based in china or from unverified users. I refuse to add my bank info, because I was one of the people that paypal leaked account info on back in 2004. 5 years later the situation is finally taken care of.

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