New Discover Feature...Send Money Via Paypal From Your CC

[DI]

Now Discover cardholders can send money to anyone via paypal.  There are no fees and the transaction is treated like a purchase.  One more reason to love Discover!!

http://discovercardblog.wordpress.com/2011/04/

[Walt_K]

Interesting.  I'm guessing there's something in the T&C to prevent people from sending money back and forth to each other to rack up cashback bonuses?

[KingAdrock]

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@Walt_K wrote:

Interesting.  I'm guessing there's something in the T&C to prevent people from sending money back and forth to each other to rack up cashback bonuses?

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I assume there are still paypal fees for the person receiving money, so that wouldn't work.

[DI]

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@KingAdrock wrote:

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@Walt_K wrote:

Interesting.  I'm guessing there's something in the T&C to prevent people from sending money back and forth to each other to rack up cashback bonuses?

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I assume there are still paypal fees for the person receiving money, so that wouldn't work.

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No fees if the currency doesn't need to be converted.

[Walt_K]

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@KingAdrock wrote:

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@Walt_K wrote:

Interesting.  I'm guessing there's something in the T&C to prevent people from sending money back and forth to each other to rack up cashback bonuses?

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I assume there are still paypal fees for the person receiving money, so that wouldn't work.

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That's not how I read it, but hopefully someone with a Discover will report back.  Paypal already let you send money funded through a bank account with no fees.  When you used a credit card to fund the transaction, you chose whether the fees would come out of your end or the receiver's end.  They didn't apply them at both ends.  So, the announcement that there are no fees on the transaction suggest (to me at least) that it is just like sending money you have funded through a checking account.

[DI]

How does sending money with Discover Money Messenger work?

You can send money to anyone with an email address or mobile phone number using Discover.com on your computer or mobile device. PayPal sends a message to your recipient letting them know their money is ready.Your recipient signs into their PayPal account to receive the money.If they don’t have a PayPal account, all they need to do is sign up.The amount you send is charged to your Discover card account just like a purchase.

Are there any fees to send money through Discover Money Messenger?

There are no fees to send money and the amount will be charged to your Discover card account like a purchase.If you are sending money to friends or family, there are no fees charged to them to accept the money.If you are sending money to a business for goods or services, PayPal will charge them a fee to accept the money.

Do I need a PayPal account to send money?

No, you do not need a PayPal account to send money.

Does the person I’m sending money to need to be a Discover Cardmember?

No, the person receiving the money doesn’t need to be a Discover Cardmember. However, they will need to sign up for a PayPal account (if they don’t already have one) in order to access their money.

Does the person I’m sending money to need a PayPal account?

You can send money to anyone even if they don’t yet have a PayPal account. But, the recipient must sign up for an account at PayPal.com in order to claim their money. When PayPal notifies the recipient that you have sent them money, they will also receive simple instructions on how to open up a PayPal account to access it.

What is the maximum amount I can send?

You can send up to $400 per day and up to $2500 per month, depending on your available credit limit.

Will I earn rewards on the transaction?

Yes, you will earn rewards on this transaction just like any purchase.

How does the recipient actually get the money?

If they are a registered PayPal account holder, the money is instantly deposited into their account. If the recipient is new to PayPal, they simply open an account, link their email address or mobile number and they will have immediate access to the money. After they log in to PayPal, they have the option to spend the money online at any merchant that accepts PayPal, transfer it to a bank account, or request a check.

How long does it take for the recipient to get the money?

Money Messenger payments are credited to existing PayPal accounts immediately. If no PayPal account exists, the money is available as soon as the recipient creates an account or links their email address or mobile phone number to an existing account.

Is the recipient charged a fee?

The recipient will be charged a fee by PayPal if you select “Pay for goods or services” or if they convert the money to another currency. PayPal fees are detailed in their U

How do I check the status of a transaction?

You will receive a confirmation e-mail when the funds have been claimed. You can also check the status of any transaction in your Money Messenger Transaction History

Can I cancel a payment I have already sent?

If the transaction is still pending, you will be able to cancel the transaction from your Money Messenger Transaction History and you will be refunded the full amount.

What happens if I send money but it’s not claimed?

If the money isn’t claimed within 30 days, you will be notified via e-mail and the full amount will be returned to your Discover card account. During this time you can also cancel the transaction from your Money Messenger Transaction History.

Where will the transaction show on my statement?

The charge will post to your statement under the Services category and will be subject to the purchase APR on your account.

What APR will Money Messenger transactions receive?

Money Messenger transactions will be subject to the purchase APR on your account.

Can I use this service to pay myself?

No, you cannot send money to yourself.

As a Sender, will these transactions show in my PayPal account?

If you have a PayPal account, Money Messenger transactions you send will not show in your PayPal account history. They are only tied to your Discover card account and will show in your Money Messenger Transaction History within Discover.com.

Can I transfer money internationally?

Yes. Please visit PayPal.com to learn more about which countries can receive money through an email address.

[Walt_K]

Sounds like you can earn an extra $25 a month (assuming 1% cashback) by sending $2500 to someone who will send $2500 to you and using that money to pay your bill.

[DI]

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@Walt_K wrote:

Sounds like you can earn an extra $25 a month (assuming 1% cashback) by sending $2500 to someone who will send $2500 to you and using that money to pay your bill.

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You just gave me an idea!!  That's $300 per year.  Better than a savings account. 

[DI]

I'm going to ask my landlord if I can start sending them rent payments via paypal. 

[Anonymous]

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@DI wrote:

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@Walt_K wrote:

Sounds like you can earn an extra $25 a month (assuming 1% cashback) by sending $2500 to someone who will send $2500 to you and using that money to pay your bill.

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You just gave me an idea!!  That's $300 per year.  Better than a savings account. 

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Wow!  It would be nice ~