Sending money using paypal and your credit card treated as cash advance ?

[Superduper2014]

Nice K! I'm on it. You all have a great day! 

[Brian_Earl_Spilner]

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@K-in-Boston wrote:

Unfortunately all of the risk of doing so would be on you.  If they sent you an invoice through PayPal (even marked up to cover the fee) that would likely be okay for most lenders.  I have done that in the past for purchasing high dollar eBay items where the seller was not accepting PayPal due to the fees, for example, but it was still less money and more convenient for me than doing an international bank wire.

Alternately, writing a convenience check as suggested would be a much better alternative.  If that is not an option, see if they are okay with a check from a payment service company like Plastiq which could arrive in just a few days.  The fees for that are usually in-line with PayPal, sometimes better if you have a Fee-Free Dollars offer.

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I do the invoice myself and I build the fees into it. I send off the invoice, get my money a few minutes later. No worry about friends and family or any of that other stuff.

[Anonymous]

Never done it with PayPal but I sent $3500 using Venmo and my CC saw it as purchase vs cash advance 

[jdbkiang]

You can always call your bank and decrease your cash advance limit to $0, then give it a go. Also depends on whether your PayPal account is "seasoned" or not. 

[K-in-Boston]

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@Anonymous wrote:

Never done it with PayPal but I sent $3500 using Venmo and my CC saw it as purchase vs cash advance 

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Most lenders are now classifying Venmo as a cash advance.

[Loquat]

I'll also chime in to ask if the card you're using is new? If so that could raise fraud flags. If not, do you have a history of high dollar spend? Reason I ask if because even with a seasoned account, a transaction outside of the norm may raise issues.

Some lenders are more lenient and some aren't. Also, if you're worried about the charge processing as a cash advance you can always lower your cash advance amount (if the lender allows).

Some a couple of other things to consider along with what has already been mentioned.

[Anonymous]

@Superduper2014 Why wouldn't you "absorb" the PayPal fee they don't want to pay, by paying more?

$5k job + $75 fee (1.5%?) = $5075.
PayPal them $5,075. Fee covered. 

maybe I'm missing something

[Anonymous]

Only once did I send payment via PayPal app directly using a credit card thinking it was going to a business. It was my Citi card for $60 for a tour. I was given a phone number and a name to send to. My statement later showed a tour company so I guess it was not to a friend. No fee and not a cash advance. This occurred in July 2019.

[Brian_Earl_Spilner]

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@Anonymous wrote:

@Superduper2014 Why wouldn't you "absorb" the PayPal fee they don't want to pay, by paying more?

$5k job + $75 fee (1.5%?) = $5075.
PayPal them $5,075. Fee covered. 

maybe I'm missing something

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Why should they absorb the fee the contractor should be paying? That's something I never got about PayPal. Nobody wants to pay the 2.9%. if you're a business and don't want to pay the fee, don't offer PayPal as a payment method.

[Anonymous]

@Brian_Earl_Spilner Oh I totally agree with you. I'm just saying, if your best choice is PayPal because that's what the contractor will take, then eat the charge. I mean it seems like OP is agreeing to that anyway.