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Sending money via PayPal using a credit card ?

Creditplz
Valued Contributor

Re: Sending money via PayPal using a credit card ?

I sent $9500 to my in laws for health reasons about 9 months with my AU Platinum Amex and it was simple and easy no flags in our case
Message 11 of 16
UncleB
Moderator

Re: Sending money via PayPal using a credit card ?

I might (?) have a data point... I've not had to do this in years, but when I did use PayPal to send money to relatives (we're talking just a few hundred dollars in my case) what option I chose altered who paid the PP service charge.

 

As it's already been mentioned, if you select the option for paying for merchandise/service (which I'm not personally encouraging unless that's actually the case) the fee is (I think) paid by the receiver, whereas if you select the option just to send money to somebody (whatever they call that now) the fee is paid by the sender.

 

I might have those backwards - like I said it's been a while - my point though is that it varies based on which option you choose.  This will likely also impact if it codes as a cash advance or not, since it would be expected for a 'purchase' to code as such (in my experience it does...) and for a strictly cash transfer to be more likely to code as a CA.

 

TL;DR, check all the options carefully and read all of the fine-print... then double-check one more time - what you select can make a difference. 

Message 12 of 16
jonfive
Established Member

Re: Sending money via PayPal using a credit card ?

Here's a little info I found on the paypal TOS page. It doesn't list the exact answer, but it's easy enough to understand.

 

 

The fees applicable to sending money can be found on the Fees for Sending Money to Friends and Family page and will be disclosed to you in advance each time you initiate a transaction to send money to a friend or family member.  If you convert money in your PayPal balance from one currency to another before sending money, you also will pay a currency conversion spread for that conversion.  And, if you use your credit card as the payment method when sending money, you may be charged a cash-advance fee by your card issuer.

If you send money to a friend or family member from a third party (non-PayPal) website or by using a third party’s product or service, then the third party will determine if the sender or recipient pays the fee.  This will be disclosed to you by the third party before the payment is initiated.

You can also use the send money feature in your PayPal account to pay for good or services.  You will not be charged for sending money to purchase goods or services as long as you choose the “send money to pay for goods and services” feature in your PayPal account.  In that case, the seller selling the goods or services pays the fees.  You may not use the “send money to a friend or family member” feature in your PayPal account when you are paying for goods and services.

 

Link: https://www.paypal.com/us/webapps/mpp/paypal-fees#sending-friends-family?locale.x=en_US

Message 13 of 16
UncleB
Moderator

Re: Sending money via PayPal using a credit card ?


@jonfive wrote:

Here's a little info I found on the paypal TOS page. It doesn't list the exact answer, but it's easy enough to understand.

 

 

The fees applicable to sending money can be found on the Fees for Sending Money to Friends and Family page and will be disclosed to you in advance each time you initiate a transaction to send money to a friend or family member.  If you convert money in your PayPal balance from one currency to another before sending money, you also will pay a currency conversion spread for that conversion.  And, if you use your credit card as the payment method when sending money, you may be charged a cash-advance fee by your card issuer.

If you send money to a friend or family member from a third party (non-PayPal) website or by using a third party’s product or service, then the third party will determine if the sender or recipient pays the fee.  This will be disclosed to you by the third party before the payment is initiated.

You can also use the send money feature in your PayPal account to pay for good or services.  You will not be charged for sending money to purchase goods or services as long as you choose the “send money to pay for goods and services” feature in your PayPal account.  In that case, the seller selling the goods or services pays the fees.  You may not use the “send money to a friend or family member” feature in your PayPal account when you are paying for goods and services.

 

Link: https://www.paypal.com/us/webapps/mpp/paypal-fees#sending-friends-family?locale.x=en_US


^^^ This is exactly what I was trying (poorly) to articulate in my post above.  Smiley Happy

 

(Thanks for providing the text and links!)  Smiley Wink

Message 14 of 16
jonfive
Established Member

Re: Sending money via PayPal using a credit card ?


@Joeyzoom416 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 !!


I guess to actually answer the OP's question Smiley Tongue

 

Looks like you've got yourself a Good or Service! (as listed in the TOS)

 

"You will not be charged for sending money to purchase goods or services as long as you choose the “send money to pay for goods and services” feature in your PayPal account.  In that case, the seller selling the goods or services pays the fees."

Link: https://www.paypal.com/us/webapps/mpp/paypal-fees#sending-friends-family?locale.x=en_US

 

 

If you don't want your friend to pay the fee, just include the (whatever percent) extra for the fee on top of your 3k.

 

@Edit: As @Coolermaster007 said:

"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 "

Message 15 of 16
joltdude
Community Leader
Senior Contributor

Re: Sending money via PayPal using a credit card ?

Some banks treat Goods and Services different than a P2P Paypal.... as in If its a G&S, its not treated as a Cash Advance, while if its a P2P , they code it as a CA/Cash Equivalency..... Something also to keep in mind. Yes the Vendor gets stuck with the fee... but you also are less likely to get billed for a Cash Advance.... and some banks (cough Amex do tend to get a bit touchy about P2P transactions and might trigger fraud problems or AA if they think its MS) You also retain Paypals product protections if its a G and S, not with a p2p.... If you buy something with a P2P.. you have no product protection via Paypal.... 

 

Message 16 of 16
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