topic Banks that let you fund via PayPal with credit card in Personal Finance

Banks that let you fund via PayPal with credit card

Neiltyson — Mon, 27 Jul 2020 06:33:07 GMT

Know of any?

Evansville Teachers Federal Credit Union is one with $1200 limit as confirmed with this post I saw this week.

This would be great for those wanting to hit the $1500 discover limit for 5% cashback this quarter

Re: Banks that let you fund via PayPal with credit card

Anonymous — Tue, 28 Jul 2020 14:46:45 GMT

I'm not understanding why you would want to do this. You'd want to have that cash in the bank to pay off the credit card balance, so why can't you just use the cash you have in the bank to fund the account? Unless you're using a card that's within its 0% APR introductory offer, but even then it just seems sketch.

Re: Banks that let you fund via PayPal with credit card

KLEXH25 — Tue, 28 Jul 2020 15:37:21 GMT

@Anonymous wrote:
I'm not understanding why you would want to do this. You'd want to have that cash in the bank to pay off the credit card balance, so why can't you just use the cash you have in the bank to fund the account? Unless you're using a card that's within its 0% APR introductory offer, but even then it just seems sketch.

Because then you can make 5% cashback off the transaction. You don't have to pay interest...just pay off the card in full with the cash you would have used to fund the account.

Re: Banks that let you fund via PayPal with credit card

Neiltyson — Tue, 28 Jul 2020 16:53:19 GMT

@Anonymous the point is to have it count as a purchase. You take that money deposited in the bank to pay off the credit card just like any other purchase. No interest is paid, but you get the 5% bonus from discover since PayPal is a bonus category this quarter

Re: Banks that let you fund via PayPal with credit card

M_Smart007 — Tue, 28 Jul 2020 16:56:20 GMT

@Neiltyson wrote:
@Anonymous the point is to have it count as a purchase. You take that money deposited in the bank to pay off the credit card just like any other purchase. No interest is paid, but you get the 5% bonus from discover since PayPal is a bonus category this quarter

I want to add, if you are in your 1st year, you get a cashback match, of another 5% on your one year anniversary.

Making it 10%.

You also could be in a 0% APR introductory period too.

Re: Banks that let you fund via PayPal with credit card

Anonymous — Tue, 28 Jul 2020 18:50:35 GMT

I thought that 99% of Banks treat it as a cash advance though, so it would really only workout 1% of the time as an actual purchase?

Sounds like a lot of acrobatic work to me.

Re: Banks that let you fund via PayPal with credit card

Anonymous — Tue, 28 Jul 2020 19:20:04 GMT

@Neiltyson wrote:
@Anonymous the point is to have it count as a purchase. You take that money deposited in the bank to pay off the credit card just like any other purchase. No interest is paid, but you get the 5% bonus from discover since PayPal is a bonus category this quarter

Gotcha. Seems like a lot of effort, especially if you don't need another bank account. Depending on a persons hourly wage, it might make more sense to just stay late at work once or twice.

Re: Banks that let you fund via PayPal with credit card

DaveInAZ — Tue, 28 Jul 2020 23:08:54 GMT

@Anonymous wrote:
I thought that 99% of Banks treat it as a cash advance though, so it would really only workout 1% of the time as an actual purchase?
Sounds like a lot of acrobatic work to me.

No, actually it's the other way around - 99% of banks/CUs that allow funding a new account with a CC post it as a purchase. And you can check data points on Doctor of Credit to be sure, and as a failsafe set your cash advance limit to $0 on the card. Earlier this month I funded a new checking and a savings account with $750 each/$1500 total, max was $1k each/$2k total but I prefer to not be too greedy. So an extra $30 in cashback rewards on my PayPal MC, and I think that size of charges and PIF before next due date strengthens my profile with Synchrony.

Re: Banks that let you fund via PayPal with credit card

KLEXH25 — Wed, 29 Jul 2020 00:49:43 GMT

@Anonymous wrote:
@Neiltyson wrote:
@Anonymous the point is to have it count as a purchase. You take that money deposited in the bank to pay off the credit card just like any other purchase. No interest is paid, but you get the 5% bonus from discover since PayPal is a bonus category this quarter
Gotcha. Seems like a lot of effort, especially if you don't need another bank account. Depending on a persons hourly wage, it might make more sense to just stay late at work once or twice.

It's literally one extra step.
1. Fund bank account with CC

2. Pay off credit card

Takes 5 minutes. No overtime needed (which is not an even an option for most people).

Re: Banks that let you fund via PayPal with credit card

iced — Wed, 29 Jul 2020 14:15:41 GMT

How is this not considered manufactured spending? It sounds like laundering cash through a 5% promotion, into a product that will mask it as a transaction, with the result being a cash balance in an account?

Re: Banks that let you fund via PayPal with credit card

Neiltyson — Wed, 29 Jul 2020 14:20:12 GMT

@iced yes, this is manufactured spending

But "laundering"?? 😂😂 There's nothing illegal about funding your bank account with credit cards dude. That's why the option exists.

Re: Banks that let you fund via PayPal with credit card

iced — Wed, 29 Jul 2020 14:35:00 GMT

@Neiltyson wrote:
@iced yes, this is manufactured spending

But "laundering"?? 😂😂 There's nothing illegal about funding your bank account with credit cards dude. That's why the option exists.

In between laughs, you might want to look up the definition of laundering. Not all forms are illegal as its based on intent, but the process remains the same.

The option exists as a convenience to quickly fund an account without having to wire/ACH/paper check funds, not so people can maximize a lolfivepercent quarter.

Re: Banks that let you fund via PayPal with credit card

Neiltyson — Wed, 29 Jul 2020 14:37:12 GMT

@iced Ok buddy... Get back to me when YOU look up the definition of laundering 😂😂😂

Re: Banks that let you fund via PayPal with credit card

DaveInAZ — Wed, 29 Jul 2020 18:48:53 GMT

@iced wrote:
@Neiltyson wrote:
@iced yes, this is manufactured spending

But "laundering"?? 😂😂 There's nothing illegal about funding your bank account with credit cards dude. That's why the option exists.
In between laughs, you might want to look up the definition of laundering. Not all forms are illegal as its based on intent, but the process remains the same.

The option exists as a convenience to quickly fund an account without having to wire/ACH/paper check funds, not so people can maximize a lolfivepercent quarter.

Why yes, you're correct - the reason I use a CC is to quickly fund an account without having to wire/ACH/paper check funds. Any rewards given for that funding is under the control of the CC issuer, not me.

When Discover's 5% category is grocery a lot of folks max it out buying gift cards, Discover seems to have no problem with that and it freely discussed here on MyFico. Personally I don't play the gift card game, that is too much hassle for the rewards for me.

And thanks for the reminder, I really need to do laundry today.

Re: Banks that let you fund via PayPal with credit card

Anonymous — Wed, 29 Jul 2020 21:40:38 GMT

@DaveInAZ wrote:
@Anonymous wrote:
I thought that 99% of Banks treat it as a cash advance though, so it would really only workout 1% of the time as an actual purchase?
Sounds like a lot of acrobatic work to me.
No, actually it's the other way around - 99% of banks/CUs that allow funding a new account with a CC post it as a purchase. And you can check data points on Doctor of Credit to be sure, and as a failsafe set your cash advance limit to $0 on the card. Earlier this month I funded a new checking and a savings account with $750 each/$1500 total, max was $1k each/$2k total but I prefer to not be too greedy. So an extra $30 in cashback rewards on my PayPal MC, and I think that size of charges and PIF before next due date strengthens my profile with Synchrony.

Intersting, I knew about the funding with CC/debit when opening an account, but I figured it was capped for around $100-200 at most. I generally just use my debit anyways card to open an account. I might have to look into this more, it would eb a way to get more money in at opening. Just recently came real close to not getting the minimum in to the account by the deadline, due to their time frame of verifing the accounts and the time it takes for a transfer to post. lol

Re: Banks that let you fund via PayPal with credit card

M_Smart007 — Thu, 30 Jul 2020 02:07:28 GMT

@Anonymous,

You probably might know this?

The Citi DC MC works real well .. I have funded at least 10 Bank/CU accounts ..

Never a cash advance fee.

Re: Banks that let you fund via PayPal with credit card

coldfusion — Thu, 30 Jul 2020 06:54:00 GMT

@Neiltyson wrote:
@iced yes, this is manufactured spending

which is something whose discussion would be a violation of the MF TOS as MS is generally considered unethical behavior which if detected leads to card issuers to close accounts.

Make sure you characterize activity accurately.

Re: Banks that let you fund via PayPal with credit card

DaveInAZ — Thu, 30 Jul 2020 13:56:11 GMT

@Neiltyson wrote:
@iced yes, this is manufactured spending

I would argue that No, it is not MS. You are purchasing a service from the financial institution - fast, efficient funding of your new account. When you use a CC to fund an account the funds are usually available the next day. Compare that to Wells Fargo which only allows an ACH or in branch deposit to fund a new account. I opened a new WF account in early July, and in the online application chose to fund it with an ACH transfer from my local credit union - it took 4 business days for that to be credited and in my available balance.

I also opened accounts in early July at a credit union that offers funding with a CC. I used my PayPal MC for a total of $1500, the CU coded that as a purchase and Synchrony treated as such. My funds were available the next day, which I much prefer. I also use my PP MC to pay my mortgage through Plastiq. Is that MS? After all, I'm paying down debt with credit. I would argue No, I'm purchasing a service from Plastiq, having them send my mortgage payment to the bank instead of having to do it myself, and I always pay my PP MC statement balance in full so any paying down debt with credit is brief & temporary.

Re: Banks that let you fund via PayPal with credit card

Neiltyson — Thu, 30 Jul 2020 14:10:40 GMT

@coldfusion then NO, this is not manufactured spending.

The bank is giving you an option to fund with credit card. I am asking which banks also let you fund through PayPal, like the one I mentioned.

THIS IS NOT ILLEGAL OR AGAINST TOS.

I am not some secret agent helping Paypal or Discover launder money through banks by funding bank accounts.

You people are crazy. 🙄

Re: Banks that let you fund via PayPal with credit card

Neiltyson — Thu, 30 Jul 2020 14:23:55 GMT

@DaveInAZ yes you explained better than me. Not really MS but just maximizing points.

Which credit union was that?