topic Re: PayPal / AOD in Credit Cards

PayPal / AOD

Wavester64 — Fri, 22 Apr 2022 17:07:38 GMT

Last night a friend was asking me the in's and outs using Paypal.

I was hit with a question I wasn't sure about.

If you use Paypal to send $ to a friend and there is no $ in your PP balance, but you have PP attached to one of your CCs, let's say AOD for example, when PP pulls that money from AOD does that count as a Cash Advance or does that count as a 3% CB transaction?

I am doubting its the latter, but just wanted to ask to be sure.

EDIT: I usually use CASH APP to send money to friends and family, and am not up on PP as it pertains to sending money that is not in your PP Balance,

Re: PayPal / AOD

jcooks — Fri, 22 Apr 2022 17:32:48 GMT

If PayPal uses a credit card to send the money, they charge you a 2.9% transaction fee. Also, your card may charge you for a cash advance fee.

Re: PayPal / AOD

FinStar — Fri, 22 Apr 2022 17:38:38 GMT

@Wavester64 wrote:
Last night a friend was asking me the in's and outs using Paypal.

I was hit with a question I wasn't sure about.

If you use Paypal to send $ to a friend and there is no $ in your PP balance, but you have PP attached to one of your CCs, let's say AOD for example, when PP pulls that money from AOD does that count as a Cash Advance or does that count as a 3% CB transaction?

I am doubting its the latter, but just wanted to ask to be sure.

EDIT: I usually use CASH APP to send money to friends and family, and am not up on PP as it pertains to sending money that is not in your PP Balance,

You can always test it with a very small transaction and see how it codes?

Re: PayPal / AOD

GApeachy — Fri, 22 Apr 2022 18:13:58 GMT

I've successfully sent via Disco, FNBO Evergreen, GoodSam VS (Comenity), Amex BCP, BB&T (before & after Truist transition) without incurring any CA fee. Also, same with Venmo....Oh, Venmo Credit Card doesn't charge CA either.

Best bet, what I did as a test for each, is to try a small amt......like @FinStar suggested. Cap1 will never fly.

Re: PayPal / AOD

GApeachy — Fri, 22 Apr 2022 18:13:20 GMT

...and one more I thought of....Regions Bank. Hope that helps.

Re: PayPal / AOD

lns1976 — Fri, 22 Apr 2022 19:27:17 GMT

I recently sent a payment with a TBOM card and it notified before I sent it that if I sent it as "Friends and Family" my issuer could view it as a Cash Advance and charge appropriate fees.

If a payment is sent as payment for goods and services, it's treated as such.

The only time you may incur a "cash advance" situation is if you send a transaction as "Friends and Family" where you are not paying for goods and services.

Re: PayPal / AOD

GApeachy — Fri, 22 Apr 2022 19:32:35 GMT

@lns1976 wrote:
I recently sent a payment with a TBOM card and it notified before I sent it that if I sent it as "Friends and Family" my issuer could view it as a Cash Advance and charge appropriate fees.

If a payment is sent as payment for goods and services, it's treated as such.

The only time you may incur a "cash advance" situation is if you send a transaction as "Friends and Family" where you are not paying for goods and services.

I mostly send as 'Friends and Family' on the cards I mentioned above. I have also sent like it's for 'goods' just to compare the fees. Depending on the card/bank you're only gonna know, for sure, if you first do a test transaction.

Re: PayPal / AOD

lns1976 — Fri, 22 Apr 2022 20:17:23 GMT

@GApeachy wrote:
@lns1976 wrote:
I recently sent a payment with a TBOM card and it notified before I sent it that if I sent it as "Friends and Family" my issuer could view it as a Cash Advance and charge appropriate fees.

If a payment is sent as payment for goods and services, it's treated as such.

The only time you may incur a "cash advance" situation is if you send a transaction as "Friends and Family" where you are not paying for goods and services.
I mostly send as 'Friends and Family' on the cards I mentioned above. I have also sent like it's for 'goods' just to compare the fees. Depending on the card/bank you're only gonna know, for sure, if you first do a test transaction.

It said my issuer "Could" view it as a cash advance.

I ended up sending it a different way so I don't know for sure how TBOM would have have viewed it.

Re: PayPal / AOD

GApeachy — Fri, 22 Apr 2022 22:08:34 GMT

@lns1976 wrote:
It said my issuer "Could" view it as a cash advance.

Sorry, yes I know you posted "could" and that's correct & appreciated....the "could" warning is there for a darned good reason. Not only is that "could" warning good to know, I wanted to add to that possibility my experience (experimenting) with low $ transactions just to take note and see for myself, for sure.

I literally have a document to view which cards do and don't CA on both Venmo & Paypal and how they code with each FI....just in case of brain-fart and I slip up.

Besides the possible CA notice you mentioned I think its good to check periodically with each bank/card by doing a test transaction perhaps once/year just to make sure that particular FI didn't change policy.

Re: PayPal / AOD

RealityDesigner42 — Fri, 22 Apr 2022 23:59:44 GMT

I'm puzzled that someone said "Cap1 will never fly." which suggests they'd charge a cash advance fee: but that isn't my experience with them.

I've sent money via Paypal to friends&family using Capital One (Quicksilver) a couple of weeks ago and wasn't charged a cash advance fee, as I wasn't the few times before that either.

Re: PayPal / AOD

GApeachy — Sat, 23 Apr 2022 11:24:08 GMT

@RealityDesigner42 wrote:
I'm puzzled that someone said "Cap1 will never fly." which suggests they'd charge a cash advance fee: but that isn't my experience with them.

I've sent money via Paypal to friends&family using Capital One (Quicksilver) a couple of weeks ago and wasn't charged a cash advance fee, as I wasn't the few times before that either.

That's good to know.....

I did a test transaction on my Cap1 Venture via Paypal and Venmo to dh's accts....both were charged a ca fee and I had to go ahead and pif. Cap1 is the only one that's ever charged me.....so that's why I stated "Cap1 will never fly". After that happened I searched online and found lots of dp's to attest to it so I'm not alone.

Has Cap1 changed their policies? IDK....but that's why I stressed doing test transactions periodically on all of your linked cards to see if changes have occured with each FI.

Re: PayPal / AOD

RealityDesigner42 — Mon, 25 Apr 2022 00:10:42 GMT

I'd seen other data points on the net confirming others used Paypal with Capital One without a cash advance fee. I wonder if it varies by card for some weird reason or by account holder? If you don't need cash advances, I wonder if Capital One would let you set the cash advance limit to $0 to ensure it can't happen if they'll label it that way, though a test send is easiest. I also used up most of my credit line on the last Paypal friends&family send, which isn't possible with a cash advance so that confirms it wasn't one (paid it off before the statement close).

Re: PayPal / AOD

RealityDesigner42 — Mon, 25 Apr 2022 01:34:57 GMT

One possible explanation for the difference popped to mind. Although this was was a personal transaction, friends&family send, I *think* the Paypal account I sent to might be a business account (they are swamped right now so I won't bug them to ask). Its free to convert a personal account to a business account.

I just checked and the category listed on the Capital One transaction for the send is "professional services" so I'm guessing that does mean its a business account and thats why it coded that way despite being a "friends&family" send. Odd.