topic Re: Paypal Smart Connect Cash Advance Loophole in Credit Cards

Paypal Smart Connect Cash Advance Loophole

linux007969 — Thu, 17 Jan 2013 06:12:09 GMT

Hey guys I just found a way to take a cash advance from my Paypal Smart Connect (for a small fee of course instead of interest that normally gets added the moment you do a cash advance on a normal credit card)

I have 2 paypal accounts and I just logged into my main one that has the smart connnect attached and i choose at the top of paypal to send money and i sent it as a Gift under personal to my email address for my other paypal account and i logged into my second paypal account and bam it was there already!

I transfered $400 and they charged me $11.90 to do that. $11.90 is a hell of alot better than the cash advance interest charges normal credit cards charge.

I know cash advances are a bad idea but i basically am going to transfer that to my bank account and then use it to pay Discover in full when the cycle closes real soon and then I can use my Discover for taxes.

Then pay Paypal Smart Connect in full after cycle ends.

I'm sorta just shifting money around and delaying so everything lines up once a few paychecks role in so i can pay everything off.

At this point in time I don't want to just pay Discover in full (I owe $392.27 and have no interest till 2014 but dont want to pay minimum and let balance hang for a while and want to pay Discover in full so i can charge some of my taxes to it cuz I dont want to send a big check in the mail and have it "get lost in the mail") and take another hit in my bank account without having something to replace it with, cuz i dont want to be out money in case i get sick or have an emergancy where i have to use my checking account for a big withdraw. I'm not going broke I'm just preventing myself from going broke, and for $11.90 its justifiable!

I just thought you guys should know this loophole if you guys ever find yourselfs in dierstraights that you need to borrow money from a credit card but dont want to pay all that high interest fees, if you have a Paypal Smart Connect account attached to your Paypal account then this would be an option for you if you ever need it.

Please don't call me stupid or whatever for doing this.

Re: Paypal Smart Connect Cash Advance Loophole

Anonymous — Thu, 17 Jan 2013 06:36:21 GMT

Nice tip. I do a fair number of tricks to manage cash flow, usually when taxes are due.

Re: Paypal Smart Connect Cash Advance Loophole

linux007969 — Thu, 17 Jan 2013 06:40:42 GMT

@Anonymous wrote:
Nice tip. I do a fair number of tricks to manage cash flow, usually when taxes are due.

Your welcome!

I thought I would make some use of my Smart Connect since I have a nice limit on it, might as well find a way to put it to good use!

Re: Paypal Smart Connect Cash Advance Loophole

Revelate — Thu, 17 Jan 2013 07:00:06 GMT

It's interesting, but if you're just doing this for short-term financing I'm not so certain it's that different than a cash advance on a credit card?

In this case, for easy math you paid a fee which equates to 3% interest if you were to keep that money for a year which is a pretty good deal; however, if we're talking 3 months, suddenly we're at 12%, and only one month, 36%.

Re: Paypal Smart Connect Cash Advance Loophole

beb86 — Thu, 17 Jan 2013 07:08:26 GMT

HMM...Very interesting.

Re: Paypal Smart Connect Cash Advance Loophole

jsickz32 — Thu, 17 Jan 2013 12:24:45 GMT

Ive done this before to pay other people using my PPSC. It never occurred to me that i could use it to send money to my other paypal account lol

Re: Paypal Smart Connect Cash Advance Loophole

jsucool76 — Thu, 17 Jan 2013 12:58:27 GMT

Basically you're paying the 3% cash advance fee, but you still get your grace period.

Re: Paypal Smart Connect Cash Advance Loophole

linux007969 — Thu, 17 Jan 2013 13:38:27 GMT

Well 3% is alot better than the 22% or higher that come cash advance interes charges are these days.

Re: Paypal Smart Connect Cash Advance Loophole

visorboy1974 — Thu, 17 Jan 2013 13:42:58 GMT

@linux007969 wrote:
Well 3% is alot better than the 22% or higher that come cash advance interes charges are these days.

You sure you're not talking about APR? Most cash advance fees are between 3-5% straight fee when you take it.

Re: Paypal Smart Connect Cash Advance Loophole

linux007969 — Thu, 17 Jan 2013 13:45:42 GMT

@visorboy1974 wrote:
@linux007969 wrote:
Well 3% is alot better than the 22% or higher that come cash advance interes charges are these days.
You sure you're not talking about APR? Most cash advance fees are between 3-5% straight fee when you take it.

Yes I am talking about APR cuz if i take a cash advance from my Discover its like 24% interest. So ya a one time fee of 3% is better.

Re: Paypal Smart Connect Cash Advance Loophole

jsickz32 — Thu, 17 Jan 2013 13:46:25 GMT

If i use my NFCU cashrewards to get cash advance i only get charged interest and mine its at 14.80% apr. No cash advance fees

Re: Paypal Smart Connect Cash Advance Loophole

jsickz32 — Thu, 17 Jan 2013 13:48:13 GMT

Yeah but the 24% its anually so it would be 2% a month. Am i right?

Re: Paypal Smart Connect Cash Advance Loophole

linux007969 — Thu, 17 Jan 2013 13:50:10 GMT

@jsickz32 wrote:
Yeah but the 24% its anually so it would be 2% a month. Am i right?

a month vs. one time fee.

Re: Paypal Smart Connect Cash Advance Loophole

jsickz32 — Thu, 17 Jan 2013 13:53:03 GMT

Right but if you are gonna carry it your gonna get charge interest either way. Smart connect doesnt offer 0% promo. So 3% for sending the money plus whatever interest you get charged for carrying the balance.

Re: Paypal Smart Connect Cash Advance Loophole

linux007969 — Thu, 17 Jan 2013 13:59:21 GMT

@jsickz32 wrote:
Right but if you are gonna carry it your gonna get charge interest either way. Smart connect doesnt offer 0% promo. So 3% for sending the money plus whatever interest you get charged for carrying the balance.

ya true. I wonder if there would have been a fee if i had selected a purchase instead of a personal gift, i wonder what the fee would have been, if any?

either way this trick works if anyone wants to transfer money from their smart connect into their pockets as long as they have 2 paypal accounts.... lol

Re: Paypal Smart Connect Cash Advance Loophole

jsickz32 — Thu, 17 Jan 2013 14:02:29 GMT

If you select purchase then the person receiving the money getd charged the fee. I use paypal a lot, usually to buy custom made parts for my car and when i send them the money they ask me to add the 3% fee on top of the amount im sending them or send the money as gift so i get charged the fee.

Re: Paypal Smart Connect Cash Advance Loophole

linux007969 — Thu, 17 Jan 2013 14:03:50 GMT

@jsickz32 wrote:
If you select purchase then the person receiving the money getd charged the fee. I use paypal a lot, usually to buy custom made parts for my car and when i send them the money they ask me to add the 3% fee on top of the amount im sending them or send the money as gift so i get charged the fee.

oh good to know.

Re: Paypal Smart Connect Cash Advance Loophole

MYBEST — Thu, 17 Jan 2013 15:17:39 GMT

Thanks for the good info!

Re: Paypal Smart Connect Cash Advance Loophole

Anonymous — Thu, 17 Jan 2013 16:39:09 GMT

I find this works better with Bill Me Later and is a hidden trandeline

I have one paypal account BML and one paypal account as PPSC If I send mobey as cash advance from my BML account to the other account I just select the cash advamnce option than take the cash out with my PayPal debit card, I don't really think itys a loophole I think it is allowed with BML

Re: Paypal Smart Connect Cash Advance Loophole

kimmiller112 — Thu, 17 Jan 2013 17:15:59 GMT

Not really a loophole as Paypal is just a way of paying people for goods/services/gifts, including yourself if you have a second Paypal account, as long as someone is paying that fee. I have done this with Bill Me Later, and like already mentioned, is a hidden tradeline. But this is a good subject to bring up as not everyone is familiar with this, unless you do a lot of buying or selling using Paypal as the payment source - it's good to keep in mind for an emergency-type situation where you may need cash fairly quickly.