How to Use PayPal for Gift Credit Cards

1. Establish a PayPal account. You can do this by visiting PayPal.com, and clicking on the 'Sign Up' button near the search engine in the upper right hand corner of the home page. You'll be prompted for the type of account you want to set up, your name and bank account information. You'll be required to set a password and provide an email address. Once you're done, PayPal will wire two small transactions to your bank account. You must know what these amounts are to activate an account.
2. Set up a 'Student Account.' This program is designed for parents of teenagers who want to give their children spending money while still monitoring where that money is spent. You will again be prompted for your child's email address. Access the Student Account section (see Resources). When the process is complete, PayPal will send you a debit card that you control, then you can give it to your teen.
3. Set up an eBay Gift Card. PayPal does not administer gift cards directly except for those designed for Student Accounts. However, you can send a friend an eBay gift card, and fund it via PayPal. Your friend may use her eBay gift card for nearly anything available on eBay.com. To set up an account, visit the eBay gift card section (see Resources) and select whether you wish to create your own personalized card or select a stock card from the eBay inventory. Follow the directions. You will need an active PayPal account to create a gift card.