topic Re: Sending money via PayPal using a credit card ? in Credit Cards

Sending money via PayPal using a credit card ?

Anonymous — Sun, 18 Dec 2016 03:00:07 GMT

Hey all -- anyone ever send money to someone (family, friends, or for a purchase for a product) on PayPal using a credit card -- specifically a Capital One card? Want to send a friend money using PayPal for a considerable amount (~$3,000) for some remote work done, but unsure if this would trip any flags, and Ive seen a few random secuirty closures lately with Cap1 so dont want to tempt fate. If an issue, I will just use my debit card to send it instead, but it'd be nice to use my 0% for the Cap1 card if i could! I have a fairly high line and currently a $0 balance.

Just seeing if anyone has ever done it. Thanks !!

Re: Sending money via PayPal using a credit card ?

Anonymous — Sun, 18 Dec 2016 03:39:54 GMT

@Anonymous wrote:
Hey all -- anyone ever send money to someone (family, friends, or for a purchase for a product) on PayPal using a credit card -- specifically a Capital One card? Want to send a friend money using PayPal for a considerable amount (~$3,000) for some remote work done, but unsure if this would trip any flags, and Ive seen a few random secuirty closures lately with Cap1 so dont want to tempt fate. If an issue, I will just use my debit card to send it instead, but it'd be nice to use my 0% for the Cap1 card if i could! I have a fairly high line and currently a $0 balance.

Just seeing if anyone has ever done it. Thanks !!

No clue about raising flags. But I do know that there will certainly be a fee involved. And in my experience its usually eaten by the person on the receiving end. For some reason it happened to me 3 different times when splitting money for trips with a group. The folks that paid from their checking account sent me the full amount, and the folks that paid with a CC the amount came was less, even if I had not sent them a request and they initiated to send me money. I would just send it by debit, if not, then Venmo or Plastiq if it were me. Surely your 0% cant be longer than another 6 months since the max they offer is 9.

Re: Sending money via PayPal using a credit card ?

Anonymous — Sun, 18 Dec 2016 03:44:21 GMT

@Anonymous wrote:
Hey all -- anyone ever send money to someone (family, friends, or for a purchase for a product) on PayPal using a credit card -- specifically a Capital One card? Want to send a friend money using PayPal for a considerable amount (~$3,000) for some remote work done, but unsure if this would trip any flags, and Ive seen a few random secuirty closures lately with Cap1 so dont want to tempt fate. If an issue, I will just use my debit card to send it instead, but it'd be nice to use my 0% for the Cap1 card if i could! I have a fairly high line and currently a $0 balance.

Just seeing if anyone has ever done it. Thanks !!

You can do it and depending on how long you have had your PayPal account, it probably wont be an issue. Shouldnt be an issue with CapOne but sometimes PayPal's security wont let payments go thru if you have a new PP account or the person you are sending it to has the same address. Only way to know is go thru the process. CapOne won't care but it may code as a cash advance though I'm not sure on that point

Re: Sending money via PayPal using a credit card ?

tussking — Sun, 18 Dec 2016 03:55:14 GMT

Just sent funds to a friend and yes it was coded cash advance.

Re: Sending money via PayPal using a credit card ?

Anonymous — Sun, 18 Dec 2016 05:12:51 GMT

@tussking wrote:
Just sent funds to a friend and yes it was coded cash advance.

Shouldn't it be coded as a regular purchase? What makes this method different than buying something on eBay?

Re: Sending money via PayPal using a credit card ?

Anonymous — Sun, 18 Dec 2016 05:15:54 GMT

@Anonymous wrote:
@tussking wrote:
Just sent funds to a friend and yes it was coded cash advance.
Shouldn't it be coded as a regular purchase? What makes this method different than buying something on eBay?

Because you're using the card in a manner that converts it to cash and not as a product purchase. If they didn't then people could just send funds to another friend/family member and have that person give them the cash back.

Re: Sending money via PayPal using a credit card ?

myjourney — Sun, 18 Dec 2016 05:18:05 GMT

@Anonymous wrote:
@Anonymous wrote:
@tussking wrote:
Just sent funds to a friend and yes it was coded cash advance.
Shouldn't it be coded as a regular purchase? What makes this method different than buying something on eBay?
Because you're using the card in a manner that converts it to cash and not as a product purchase. If they didn't then people could just send funds to another friend/family member and have that person give them the cash back.

^^^^^^^^^^^^^^^^^ +1 Something that use to be done to met a spending bonus ^^^^^^^^^^^^^^^

The big banks have since closed this loop hole and you risk having accounts closed as a result

Re: Sending money via PayPal using a credit card ?

Coolermaster007 — Sun, 18 Dec 2016 05:24:55 GMT

Have your friend send you an invoice from his paypal account its very simple to do to yours when click"pay now it will ask how u want to pay then choose the cap1 card 3% fee thats all no cash advance nor red flags.I ve done it alot from my wife paypal account no issues with bank & always meet my bonus spend

Re: Sending money via PayPal using a credit card ?

jonfive — Sun, 18 Dec 2016 05:35:22 GMT

@Coolermaster007 wrote:
Have your friend send you an invoice from his paypal account its very simple to do to yours when click"pay now it will ask how u want to pay then choose the cap1 card 3% fee thats all no cash advance nor red flags.I ve done it alot from my wife paypal account no issues with bank & always meet my bonus spend

how do you manage it over taxes?

just allow 'funded' pp account to count as 'income'?

edit - added quote

Re: Sending money via PayPal using a credit card ?

jonfive — Sun, 18 Dec 2016 05:45:49 GMT

@jonfive wrote:
@Coolermaster007 wrote:
Have your friend send you an invoice from his paypal account its very simple to do to yours when click"pay now it will ask how u want to pay then choose the cap1 card 3% fee thats all no cash advance nor red flags.I ve done it alot from my wife paypal account no issues with bank & always meet my bonus spend

how do you manage it over taxes?

just allow 'funded' pp account to count as 'income'?

edit - added quote

Found my own answer

"PayPal is required by the IRS to report the sales of goods and services for customers who, in a single year receive:

More than $20,000 USD, AND
200 or more payments."

via: https://www.paypal.com/us/selfhelp/article/How-does-PayPal-report-my-sales-to-the-IRS-Will-I-receive-a-1099-tax-statement-FAQ729

Re: Sending money via PayPal using a credit card ?

Creditplz — Sun, 18 Dec 2016 07:28:41 GMT

I sent $9500 to my in laws for health reasons about 9 months with my AU Platinum Amex and it was simple and easy no flags in our case

Re: Sending money via PayPal using a credit card ?

UncleB — Sun, 18 Dec 2016 09:04:10 GMT

I might (?) have a data point... I've not had to do this in years, but when I did use PayPal to send money to relatives (we're talking just a few hundred dollars in my case) what option I chose altered who paid the PP service charge.

As it's already been mentioned, if you select the option for paying for merchandise/service (which I'm not personally encouraging unless that's actually the case) the fee is (I think) paid by the receiver, whereas if you select the option just to send money to somebody (whatever they call that now) the fee is paid by the sender.

I might have those backwards - like I said it's been a while - my point though is that it varies based on which option you choose. This will likely also impact if it codes as a cash advance or not, since it would be expected for a 'purchase' to code as such (in my experience it does...) and for a strictly cash transfer to be more likely to code as a CA.

TL;DR, check all the options carefully and read all of the fine-print... then double-check one more time - what you select can make a difference.

Re: Sending money via PayPal using a credit card ?

jonfive — Sun, 18 Dec 2016 09:12:46 GMT

Here's a little info I found on the paypal TOS page. It doesn't list the exact answer, but it's easy enough to understand.

The fees applicable to sending money can be found on the Fees for Sending Money to Friends and Family page and will be disclosed to you in advance each time you initiate a transaction to send money to a friend or family member. If you convert money in your PayPal balance from one currency to another before sending money, you also will pay a currency conversion spread for that conversion. And, if you use your credit card as the payment method when sending money, you may be charged a cash-advance fee by your card issuer.

If you send money to a friend or family member from a third party (non-PayPal) website or by using a third party’s product or service, then the third party will determine if the sender or recipient pays the fee. This will be disclosed to you by the third party before the payment is initiated.

You can also use the send money feature in your PayPal account to pay for good or services. You will not be charged for sending money to purchase goods or services as long as you choose the “send money to pay for goods and services” feature in your PayPal account. In that case, the seller selling the goods or services pays the fees. You may not use the “send money to a friend or family member” feature in your PayPal account when you are paying for goods and services.

Link: https://www.paypal.com/us/webapps/mpp/paypal-fees#sending-friends-family?locale.x=en_US

Re: Sending money via PayPal using a credit card ?

UncleB — Sun, 18 Dec 2016 09:20:07 GMT

@jonfive wrote:
Here's a little info I found on the paypal TOS page. It doesn't list the exact answer, but it's easy enough to understand.

The fees applicable to sending money can be found on the Fees for Sending Money to Friends and Family page and will be disclosed to you in advance each time you initiate a transaction to send money to a friend or family member. If you convert money in your PayPal balance from one currency to another before sending money, you also will pay a currency conversion spread for that conversion. And, if you use your credit card as the payment method when sending money, you may be charged a cash-advance fee by your card issuer.
If you send money to a friend or family member from a third party (non-PayPal) website or by using a third party’s product or service, then the third party will determine if the sender or recipient pays the fee. This will be disclosed to you by the third party before the payment is initiated.
You can also use the send money feature in your PayPal account to pay for good or services. You will not be charged for sending money to purchase goods or services as long as you choose the “send money to pay for goods and services” feature in your PayPal account. In that case, the seller selling the goods or services pays the fees. You may not use the “send money to a friend or family member” feature in your PayPal account when you are paying for goods and services.

Link: https://www.paypal.com/us/webapps/mpp/paypal-fees#sending-friends-family?locale.x=en_US

^^^ This is exactly what I was trying (poorly) to articulate in my post above.

(Thanks for providing the text and links!)

Re: Sending money via PayPal using a credit card ?

jonfive — Sun, 18 Dec 2016 09:37:48 GMT

@Anonymous wrote:
Hey all -- anyone ever send money to someone (family, friends, or for a purchase for a product) on PayPal using a credit card -- specifically a Capital One card? Want to send a friend money using PayPal for a considerable amount (~$3,000) for some remote work done, but unsure if this would trip any flags, and Ive seen a few random secuirty closures lately with Cap1 so dont want to tempt fate. If an issue, I will just use my debit card to send it instead, but it'd be nice to use my 0% for the Cap1 card if i could! I have a fairly high line and currently a $0 balance.

Just seeing if anyone has ever done it. Thanks !!

I guess to actually answer the OP's question

Looks like you've got yourself a Good or Service! (as listed in the TOS)

"You will not be charged for sending money to purchase goods or services as long as you choose the “send money to pay for goods and services” feature in your PayPal account. In that case, the seller selling the goods or services pays the fees."

Link: https://www.paypal.com/us/webapps/mpp/paypal-fees#sending-friends-family?locale.x=en_US

If you don't want your friend to pay the fee, just include the (whatever percent) extra for the fee on top of your 3k.

@Edit: As @Coolermaster007 said:

"Have your friend send you an invoice from his paypal account its very simple to do to yours when click"pay now it will ask how u want to pay then choose the cap1 card 3% fee thats all no cash advance nor red flags.I ve done it alot from my wife paypal account no issues with bank & always meet my bonus spend "

Re: Sending money via PayPal using a credit card ?

joltdude — Sun, 18 Dec 2016 16:49:34 GMT

Some banks treat Goods and Services different than a P2P Paypal.... as in If its a G&S, its not treated as a Cash Advance, while if its a P2P , they code it as a CA/Cash Equivalency..... Something also to keep in mind. Yes the Vendor gets stuck with the fee... but you also are less likely to get billed for a Cash Advance.... and some banks (cough Amex do tend to get a bit touchy about P2P transactions and might trigger fraud problems or AA if they think its MS) You also retain Paypals product protections if its a G and S, not with a p2p.... If you buy something with a P2P.. you have no product protection via Paypal....