topic Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions in Credit Cards

AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

AvaMarie77 — Thu, 10 Aug 2017 02:52:33 GMT

I am in total shock right now. I am also extremley embarrased because my cards declined while at a business dinner!!

American Express suspended both of my Everday cards 15k limit and 3k limit because I bought used furniture from my UNCLE through PAYPAL.

I had no idea that this was NOT ALLOWED!!! I didn't know that in no shape or form can you pay relatives through PAYPAL using AMEX. I so SAD right now. Had I known I would have never ever used AMEX. I would have just paid another way

Has this ever happend to anyone else?

American Express requested that I turn in my last two bank statements with the account I pay my AMEX bill with. I use this account for bills only, about $5k-7k deposited monthly just to pay my bills...What are they looking for? I tried to ask the rep but there is a HUGE language barrier every single time I call.

Total shock right NOW!

Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

woodyman100 — Thu, 10 Aug 2017 03:05:23 GMT

@AvaMarie77 wrote:
I am in total shock right now. I am also extremley embarrased because my cards declined while at a business dinner!!

American Express suspended both of my Everday cards 15k limit and 3k limit because I bought used furniture from my UNCLE through PAYPAL.

I had no idea that this was NOT ALLOWED!!! I didn't know that in no shape or form can you pay relatives through PAYPAL using AMEX. I so SAD right now. Had I known I would have never ever used AMEX. I would have just paid another way

Has this ever happend to anyone else?

American Express requested that I turn in my last two bank statements with the account I pay my AMEX bill with. I use this account for bills only, about $5k-7k deposited monthly just to pay my bills...What are they looking for? I tried to ask the rep but there is a HUGE language barrier every single time I call.

Total shock right NOW!

Unfortunately PayPal to relatives or your own business is definitely a no-no with Amex.

If you would like to keep the cards then send what they need and let them go through the FR routine.

Pay pal can be used for MS or money laundering so they flag almost all PayPal transactions. They deem suspicious.

i have my Freedom linked to PayPal and have never had an issue.

good luck

Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

Gregory1776 — Thu, 10 Aug 2017 03:34:40 GMT

So does this mean I CAN'T pay progressive with PayPal OR my card?? 😓😓😓😭

Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

Schwartzinator — Thu, 10 Aug 2017 03:34:42 GMT

Good to know! I won't pay friends or family through PayPal with AmEx.

Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

Anonymous — Thu, 10 Aug 2017 03:47:19 GMT

.Doesn't Pay Pal Charge 3 percent fee?

Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

Anonymous — Thu, 10 Aug 2017 03:49:08 GMT

Good to know! Didn't know I can launder money with PayPal.

Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

CreditCuriosity — Thu, 10 Aug 2017 03:49:55 GMT

Yes paying realatives especailly people with same last name with certain CC's are huge red flags as mentioned as can be used for MS or to get around Cash Advance fees, etc. among other things. Amex is know to be the most strict of any lender although sure others take notice as well. I have no issues paying business using amex or other cards, but individuals or family heck no with cards I care about.

Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

AvaMarie77 — Thu, 10 Aug 2017 04:08:56 GMT

I wasn't charged a fee...I will have to ask my Uncle if he was charged a fee.

I didn't even know that people do this type of thing to get money. What is MS AND MC?

I stand to lose 18k in Credit for a $400 sectional!!!!!!! I really had no clue at all that it wasn't allowed.

Called back after sending my bank statements and I was told it could take 5-10 DAYS for them to make a decision. The rep told me that my cards may be cancelled all together or my lines of credit will be lowered.

No warning no nothing.

Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

Anonymous — Thu, 10 Aug 2017 04:20:45 GMT

@AvaMarie77 wrote:
I wasn't charged a fee...I will have to ask my Uncle if he was charged a fee.

I didn't even know that people do this type of thing to get money. What is MS AND MC?

I stand to lose 18k in Credit for a $400 sectional!!!!!!! I really had no clue at all that it wasn't allowed.

Called back after sending my bank statements and I was told it could take 5-10 DAYS for them to make a decision. The rep told me that my cards may be cancelled all together or my lines of credit will be lowered.

No warning no nothing.

MS is Manufactured Spending. I don't think we're allowed to talk about it.

as soon as i saw you mention sending your uncle money, that was my first thought as to why they closed it

Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

AvaMarie77 — Thu, 10 Aug 2017 04:25:50 GMT

Thank you for responding. I am glad I know now. I

I will never use paypal in any type of way again.

Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

Anonymous — Thu, 10 Aug 2017 11:28:09 GMT

@AvaMarie77 wrote:
Thank you for responding. I am glad I know now. I

I will never use paypal in any type of way again.

The issue is not with PayPal, its with American Express. Even then plenty of people use their American Express cards with PayPal and do not have a problem. It's a big myth that you can't use an Amex card with PP. You are having problems because you sent money to a relative using a credit card. If you had used any of the other person to person money venues like Venmo, you probably would still have run afoul. Amex has no way of knowing that you're not just sending money to yourself via your Uncle thus it led to a review of your accounts. Almost any other creditor would have done the same. Hopefully after the review they will restore your accounts. Good luck.

Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

Anonymous — Thu, 10 Aug 2017 14:26:17 GMT

@Anonymous wrote:
@AvaMarie77 wrote:
Thank you for responding. I am glad I know now. I

I will never use paypal in any type of way again.
The issue is not with PayPal, its with American Express. Even then plenty of people use their American Express cards with PayPal and do not have a problem. It's a big myth that you can't use an Amex card with PP. You are having problems because you sent money to a relative using a credit card. If you had used any of the other person to person money venues like Venmo, you probably would still have run afoul. Amex has no way of knowing that you're not just sending money to yourself via your Uncle thus it led to a review of your accounts. Almost any other creditor would have done the same. Hopefully after the review they will restore your accounts. Good luck.

I am not sure what benefit sending money to yourself via credit card would serve as you are charged 3 percent by PayPal or Venmo. As you earn less than 3 percent it would be a loss. And Amex would still get their fee so I am not sure why they care

Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

Chickenpotpie — Thu, 10 Aug 2017 14:32:53 GMT

I have my paypal connected to amex and have for years. I use the card very lightly that way and only with commercial vendors. basically anything under 100 bucks. For other stuff I use paypal credit. Like been said, Amex is the issue and they are notoriously twitchy about certain types of transactions.

Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

Anonymous — Thu, 10 Aug 2017 14:37:49 GMT

@Anonymous wrote:
@Anonymous wrote:
@AvaMarie77 wrote:
Thank you for responding. I am glad I know now. I

I will never use paypal in any type of way again.
The issue is not with PayPal, its with American Express. Even then plenty of people use their American Express cards with PayPal and do not have a problem. It's a big myth that you can't use an Amex card with PP. You are having problems because you sent money to a relative using a credit card. If you had used any of the other person to person money venues like Venmo, you probably would still have run afoul. Amex has no way of knowing that you're not just sending money to yourself via your Uncle thus it led to a review of your accounts. Almost any other creditor would have done the same. Hopefully after the review they will restore your accounts. Good luck.
I am not sure what benefit sending money to yourself via credit card would serve as you are charged 3 percent by PayPal or Venmo. As you earn less than 3 percent it would be a loss. And Amex would still get their fee so I am not sure why they care

Same reason all creditors care about Manufactured Spending. I'm not going to go into details but there are ways around those fees. Even the OP said she wasn't charged a fee.

Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

AvaMarie77 — Thu, 10 Aug 2017 14:43:28 GMT

Thank you. I hope my accounts get reinstated too. If not it is a good lesson learned.

I DO understand that it is my fault HOWEVER I DID NOT KNOW, it would have been nice if in BIG LETTERS American Express would let cardholders know in CLEAR ENGLISH that you cannot pay for any SERVICES whatsoever to anyone in your FAMILY using PAYPAL or through PAYPAL or your account will be suspended. AND not only PAYPAL but any other similar service. That is all I am saying.

I had to look up what Venmo I am not to savvy with all of this stuff.

I called back once again to ask why this is a NO NO with AMEX. I was told by the rep that some people will pay their family members and the family member will give them the CASH. I was also told that it happens alot and AMEX can't tell if the cardholder is having financial problems.

All of this over a $400 USED SECTIONAL because I was trying to save money.

I would have had better luck going to Ashley Furniture Store and charging the $1500 BRAND new sectional that I wanted. I am so sad right now because not only was this a honest mistake but my credit score is going to SUFFER.

Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

Anonymous — Thu, 10 Aug 2017 14:43:39 GMT

@Anonymous wrote:

I am not sure what benefit sending money to yourself via credit card would serve as you are charged 3 percent by PayPal or Venmo. As you earn less than 3 percent it would be a loss. And Amex would still get their fee so I am not sure why they care

While it might not be a good idea for the individual, that's probably not Amex's concern. The problem for the issuer with any type of (proper) MS is the potential for "unlimited" rewards as you are not really using your own money. So even if Amex pays 1% rewards, they may still feel exposed, even if their share of the swipe fee more than covers it.

They don't know what Paypal/Venmo etc are actually charging you, so they can't evaluate (or care) whether things are profitable for you.

Now they could certainly wait to see if there is a pattern (it sounds like OP just did one transaction) before pouncing, as they did with Old Blue Cash abuse, but they do seem very very sensitive to certain types of Paypal actibity, and obviously decide not to take any chances.

Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

Anonymous — Thu, 10 Aug 2017 15:09:58 GMT

@AvaMarie77 wrote:
Thank you. I hope my accounts get reinstated too. If not it is a good lesson learned.

I DO understand that it is my fault HOWEVER I DID NOT KNOW, it would have been nice if in BIG LETTERS American Express would let cardholders know in CLEAR ENGLISH that you cannot pay for any SERVICES whatsoever to anyone in your FAMILY using PAYPAL or through PAYPAL or your account will be suspended. AND not only PAYPAL but any other similar service. That is all I am saying.

I had to look up what Venmo I am not to savvy with all of this stuff.

I called back once again to ask why this is a NO NO with AMEX. I was told by the rep that some people will pay their family members and the family member will give them the CASH. I was also told that it happens alot and AMEX can't tell if the cardholder is having financial problems.

All of this over a $400 USED SECTIONAL because I was trying to save money.

I would have had better luck going to Ashley Furniture Store and charging the $1500 BRAND new sectional that I wanted. I am so sad right now because not only was this a honest mistake but my credit score is going to SUFFER.

From Amex's point of view It does seem suspicious though, as if you were buying furniture from your family you have to see them to pick up the furniture so typically you would give them a check. And these days you can scan a check using your phone into your checking account. As your Uncle would end up 3 percent less really it makes no sense to use a credit card. Or you could use your debit card and bypass the fee. Their statement about financial problems seems more accurate than manufactured spending. As credit cards typically have much lower cash advance limits.

Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

Anonymous — Thu, 10 Aug 2017 15:11:42 GMT

I think you'll end up being fine

Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

K-in-Boston — Thu, 10 Aug 2017 15:23:34 GMT

It's not so much about rewards and MS as Amex is concerned about circumventing their cash advance policies and/or financial difficulties resulting in needing a cash advance, which would be why they requested the banking statements. If you hand over anything they're asking for, you'll be fine and life with Amex will continue as normal. I've used Amex for hundreds of PayPal transactions since even before their IPO when eBay bought them quite a few years back without issues. I completely agree with other posters that it's not using PayPal, but rather their concern with how PayPal was used, rightly (which it should be in this case since it was used to innocently pay for goods) or wrongly.

Re: AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

fltireguy — Thu, 10 Aug 2017 15:31:09 GMT

OP- why do you think your credit score will suffer? This should have no effect on it, whether the accounts remain open or they close them