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

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Frequent Contributor

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

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

Message 11 of 31
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Community Leader
Super Contributor

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


@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.


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.







Message 12 of 31
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Valued Contributor

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

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

July 2020
Experian Fico 8. 707
Transunion Fico 8. 705
Equifax Fico 8. 724

Capital one QS1. $2450
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Citi Rewards $3900
Message 13 of 31
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Established Contributor

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

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. 





[2/2019]
Message 14 of 31
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Moderator

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


@CS1974 wrote:

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


Most lenders are now classifying Venmo as a cash advance.

Message 15 of 31
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Moderator

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

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.
Message 16 of 31
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Frequent Contributor

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

@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










RIP:

INSTALLMENTS:
11 years more payments!!



GOALS:
• [X] $10k revolving CL by 2021
• Apple Card (too sexy not to have) by 2021
• [X] Just one more cash back rewards card by 2021
• [X] Student Loans (27, yes, 27 of them) out of rehab and default by 6/2020
• [___] FICO 670 by end of 2020: [___]EX [___]TU [__X__]EQ
• [X] PC Cap1 to QS 5/2020 - 100 days after opening; credit steps done 8/2020
• [X] PC Discover—to DiscIt 5% 3/2020
Message 17 of 31
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Valued Contributor

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

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.

Scores, HPs/24 mos. (updated 10/09/20):
    Experian FICO Score 8 = 825, 1/24
    Experian FICO Score 9 = 813, 1/24
   TransUnion = 815, 1/24
    Equifax = 819, 0/24

Total 2019 rewards, incl. offers/deals = $1,709.07
Avg. rewards rate, incl. offers/deals = 3.92%

Total CL: $247,000

Cards (hover over for CL | interest rate | Date Opened):
Message 18 of 31
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Community Leader
Super Contributor

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


@Back2Reality 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


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.







Message 19 of 31
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Frequent Contributor

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

@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. 










RIP:

INSTALLMENTS:
11 years more payments!!



GOALS:
• [X] $10k revolving CL by 2021
• Apple Card (too sexy not to have) by 2021
• [X] Just one more cash back rewards card by 2021
• [X] Student Loans (27, yes, 27 of them) out of rehab and default by 6/2020
• [___] FICO 670 by end of 2020: [___]EX [___]TU [__X__]EQ
• [X] PC Cap1 to QS 5/2020 - 100 days after opening; credit steps done 8/2020
• [X] PC Discover—to DiscIt 5% 3/2020
Message 20 of 31
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