Under most circumstances, due to the way the funding heiarchy works per the User Agreement, the Balance is used first and foremost, and then the bank if there is a credit card tied to the account, then any credit line provided by PayPal, then your normal Debit/Credit card, then an electronic check. Keep in min that with an eCheck, it overrides the use of the balance entirely, which a normal credit/debit card or Instant Transfer does not, so having less than the purchase in your balance is less hindering. Basically, any time a balance is available, it will be used at least in part for a transaction (the only exceptions being a PayPal Credit line, eCheck, or Pay After Delivery). In short, the Credit Card, like the bank is more of a back up funding source than anything, however, some merchants still opt to restrict their acceptance of certain payment methods, despite using PayPal. To answer your direct credit card payment option, most people opt for PayPal due to more dispute options and so on.
... View more