topic Re: Credit Card - Paypal Cash Advance Fee? in Credit Cards

Credit Card - Paypal Cash Advance Fee?

CreditUp26 — Sat, 21 May 2016 18:03:29 GMT

I want to send money to my mother, it's a one-time thing for a few thousand dollars. Figured I would use my new Citi card and send through PayPal because it's fast and I get points. Question is, I know I will pay a fee to PayPal but does my credit card consider this a cash advance for interest/cash advance fee purchases? Is this allowed?

Re: Credit Card - Paypal Cash Advance Fee?

Anonymous — Sat, 21 May 2016 18:12:25 GMT

@CreditUp26 wrote:
I want to send money to my mother, it's a one-time thing for a few thousand dollars. Figured I would use my new Citi card and send through PayPal because it's fast and I get points. Question is, I know I will pay a fee to PayPal but does my credit card consider this a cash advance for interest/cash advance fee purchases? Is this allowed?

It depends on the cc. I have done it once with a local CU cc and I wasn't charged a CA fee, but I don't know about Citi. The PP fee should already be enough to discourage you though, since you're talking about thousands of dollars. If you have a bank account linked to PP the service is free, or you could try other services that might do that for free. Even with a 2% rewards card, you'll be behind after PP's 2.9% fee.

Re: Credit Card - Paypal Cash Advance Fee?

Anonymous — Sat, 21 May 2016 18:22:52 GMT

Actually most banks allow peer-to-peer transfers for free and they are pretty fast too. With Chase for example the transfer is essentially instantaneous. That's provided both of you have an account with the same bank. If you and your mother have accounts with different banks, you can probably still do it, but it might take a little longer (a few days). Of course all this is provided both of you are in the US.

Re: Credit Card - Paypal Cash Advance Fee?

taxi818 — Sat, 21 May 2016 22:42:34 GMT

I would not risk it. It is probably Cash advance using your citi card. maybe change the heading not to focus on Paypal but on What citi would do.

Re: Credit Card - Paypal Cash Advance Fee?

jeffery581 — Sat, 21 May 2016 22:47:20 GMT

I think the fees and red flags it might raise are not worth it. IMO/

Maybe just do it the old fashioned way and write a check and mail it, or do an ach transfer if there are no fees.

Re: Credit Card - Paypal Cash Advance Fee?

Anonymous — Sun, 22 May 2016 05:49:52 GMT

Using PayPal won't be as a cash advanced. Make sure u send as gift of not the person receiving will be charged

Re: Credit Card - Paypal Cash Advance Fee?

acciofirebolt — Sun, 22 May 2016 06:47:39 GMT

I've done this before (with a WF CC) and it's not considered cash advance, it'll be considered another credit card transtion on your statement. BUT, paypal does charge a fee (I think 3%) even if you send it as a gift to friends/family you'll still have to pay the fee because you're using a credit card to sent it, if you're using a bank account the fee is waved.

Re: Credit Card - Paypal Cash Advance Fee?

Anonymous — Sun, 22 May 2016 22:05:09 GMT

I did this before with my Citi Thank You Preferred and it definately was looked at as a cash advance. I had to pay the cash advance fee to Citi!

Re: Credit Card - Paypal Cash Advance Fee?

Klesko — Mon, 23 May 2016 12:58:18 GMT

I did this with my wifes CapOne Venture a while back. Her parents needed some money and I sent them 2k a week for 4 week of a total of 8k. CapOne treated it as a normal credit card charge and I got the points. However I did have to pay the paypal 2.5% credit card fee. After the 4th transaction I got a call from paypal asking me if I was trying to avoid the cash advance on the cards. They basically said dont do it anymore.

I think you would be fine with one transaction though but I cannot say how citi will treat it.

Re: Credit Card - Paypal Cash Advance Fee?

CreditCuriosity — Mon, 23 May 2016 13:30:35 GMT

Kinda off topic, but on topic.. I called Chase JPM priority service line about my Ritz as I am going to start paying rent on my Ritz card through my Apartment complex portal. I am worried it would possibly be a Cash advance and asked them to set my limit to 0 so if it was it wouldnt go through... They started in all his time beeing with Chase nothing has ever gone through as a cash advance unless you actually went to an ATM and withdrew cash by pin and he essentially stated if for some reason it was although he couldnt imagine why that would happen call him back personally and he would remove said fees. I don't know how they can do a cash advance without a PIN. Maybe it is up to the CC issuer it they view it as a cash advance? In case of chase in my scenario you physically need a pin and atm to do it from what he stated