Sending money via PayPal using a credit card ?

[Anonymous]

Hey all -- anyone ever send money to someone (family, friends, or for a purchase for a product) on PayPal using a credit card -- specifically a Capital One card?  Want to send a friend money using PayPal for a considerable amount (~$3,000) for some remote work done, but unsure if this would trip any flags, and Ive seen a few random secuirty closures lately with Cap1 so dont want to tempt fate. If an issue, I will just use my debit card to send it instead, but it'd be nice to use my 0% for the Cap1 card if i could!  I have a fairly high line and currently a $0 balance.

Just seeing if anyone has ever done it.  Thanks !!

[Anonymous]

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@Anonymous wrote:

Hey all -- anyone ever send money to someone (family, friends, or for a purchase for a product) on PayPal using a credit card -- specifically a Capital One card?  Want to send a friend money using PayPal for a considerable amount (~$3,000) for some remote work done, but unsure if this would trip any flags, and Ive seen a few random secuirty closures lately with Cap1 so dont want to tempt fate. If an issue, I will just use my debit card to send it instead, but it'd be nice to use my 0% for the Cap1 card if i could!  I have a fairly high line and currently a $0 balance.

Just seeing if anyone has ever done it.  Thanks !!

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No clue about raising flags. But I do know that there will certainly be a fee involved. And in my experience its usually eaten by the person on the receiving end.  For some reason it happened to me 3 different times when splitting money for trips with a group.  The folks that paid from their checking account sent me the full amount, and the folks that paid with a CC the amount came was less, even if I had not sent them a request and they initiated to send me money.  I would just send it by debit, if not, then Venmo or Plastiq if it were me.  Surely your 0% cant be longer than another 6 months since the max they offer is 9.

[Anonymous]

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@Anonymous wrote:

Hey all -- anyone ever send money to someone (family, friends, or for a purchase for a product) on PayPal using a credit card -- specifically a Capital One card?  Want to send a friend money using PayPal for a considerable amount (~$3,000) for some remote work done, but unsure if this would trip any flags, and Ive seen a few random secuirty closures lately with Cap1 so dont want to tempt fate. If an issue, I will just use my debit card to send it instead, but it'd be nice to use my 0% for the Cap1 card if i could!  I have a fairly high line and currently a $0 balance.

Just seeing if anyone has ever done it.  Thanks !!

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You can do it and depending on how long you have had your PayPal account, it probably wont be an issue.  Shouldnt be an issue with CapOne but sometimes PayPal's security wont let payments go thru if you have a new PP account or the person you are sending it to has the same address.  Only way to know is go thru the process.  CapOne won't care but it may code as a cash advance though I'm not sure on that point

[tussking]

Just sent funds to a friend and yes it was coded cash advance.

[Anonymous]

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@tussking wrote:

Just sent funds to a friend and yes it was coded cash advance.

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Shouldn't it be coded as a regular purchase? What makes this method different than buying something on eBay?

[Anonymous]

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@Anonymous wrote:

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@tussking wrote:

Just sent funds to a friend and yes it was coded cash advance.

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Shouldn't it be coded as a regular purchase? What makes this method different than buying something on eBay?

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Because you're using the card in a manner that converts it to cash and not as a product purchase.  If they didn't then people could just send funds to another friend/family member and have that person give them the cash back.

[myjourney]

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@Anonymous wrote:

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@Anonymous wrote:

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@tussking wrote:

Just sent funds to a friend and yes it was coded cash advance.

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Shouldn't it be coded as a regular purchase? What makes this method different than buying something on eBay?

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Because you're using the card in a manner that converts it to cash and not as a product purchase.  If they didn't then people could just send funds to another friend/family member and have that person give them the cash back.

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^^^^^^^^^^^^^^^^^ +1 Something that use to be done to met a spending bonus ^^^^^^^^^^^^^^^

The big banks have since closed this loop hole and you risk having accounts closed as a result 

[Coolermaster007]

Have your friend send you an invoice from his paypal account its very simple to do to yours when click"pay now it will ask how u want to pay then choose the cap1 card 3% fee thats all no cash advance nor red flags.I ve done it alot from my wife paypal account no issues with bank & always meet my bonus spend

[jonfive]

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@Coolermaster007 wrote:
Have your friend send you an invoice from his paypal account its very simple to do to yours when click"pay now it will ask how u want to pay then choose the cap1 card 3% fee thats all no cash advance nor red flags.I ve done it alot from my wife paypal account no issues with bank & always meet my bonus spend

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how do you manage it over taxes?

just allow 'funded' pp account to count as 'income'?

edit - added quote

[jonfive]

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@jonfive wrote:

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@Coolermaster007 wrote:
Have your friend send you an invoice from his paypal account its very simple to do to yours when click"pay now it will ask how u want to pay then choose the cap1 card 3% fee thats all no cash advance nor red flags.I ve done it alot from my wife paypal account no issues with bank & always meet my bonus spend

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how do you manage it over taxes?

just allow 'funded' pp account to count as 'income'?

edit - added quote

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Found my own answer

"PayPal is required by the IRS to report the sales of goods and services for customers who, in a single year receive:

• More than $20,000 USD, AND
• 200 or more payments."

via: https://www.paypal.com/us/selfhelp/article/How-does-PayPal-report-my-sales-to-the-IRS-Will-I-receive...