Why Does PayPal Require a Credit Card for Domain Purchases on WHMCS but Not for Wallet Transactions?

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why do add wallet transactions on paypal work with paypal wallet balance on whmcs but if you want to pay for a domain with paypal on whmcs it always asks to pay with your credit card

This happens because of how WHMCS and PayPal handle transactions differently depending on the type of purchase:

1. Adding Funds to Wallet (Add Funds Transactions)

  • When you add funds to your WHMCS Wallet using PayPal, PayPal treats it as a generic money transfer.
  • Since it’s not a direct product purchase, PayPal allows you to use your PayPal balance, assuming it is sufficient.
  • This transaction is considered lower risk because it’s just funding your account.

2. Paying for a Domain (Domain Registrations)

  • When purchasing a domain, WHMCS submits the payment request to PayPal.
  • Many domain registrars require payments via credit/debit cards due to anti-fraud measures.
  • PayPal may enforce stricter payment methods (like credit cards) for domain registrations because:
    • Domains are high-risk products (they can be used for spam, fraud, etc.).
    • Many domain registrars require PayPal to process payments only with a verified funding source.
    • If your PayPal balance is low, PayPal might automatically default to a linked card.

Possible Solutions

  1. Ensure Your PayPal Balance Covers the Full Amount

    • If your PayPal balance is not enough, PayPal will force a card payment.
  2. Check PayPal’s Preferred Payment Method

    • Go to PayPal Settings > Payments > Automatic Payments and ensure PayPal Balance is set as the preferred option.
  3. Try a Different Registrar or Contact WHMCS Support

    • Some registrars may have different payment rules.
    • If WHMCS forces a card, ask their support if they have PayPal Balance as an option.

FAQs

Frequently Asked Questions

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