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Banks that let you fund via PayPal with credit card

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Valued Member

Banks that let you fund via PayPal with credit card

Know of any?

 

Evansville Teachers Federal Credit Union is one with $1200 limit as confirmed with this post I saw this week

 

This would be great for those wanting to hit the $1500 discover limit for 5% cashback this quarter 

Message 1 of 21
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Frequent Contributor

Re: Banks that let you fund via PayPal with credit card

I'm not understanding why you would want to do this. You'd want to have that cash in the bank to pay off the credit card balance, so why can't you just use the cash you have in the bank to fund the account? Unless you're using a card that's within its 0% APR introductory offer, but even then it just seems sketch.




Message 2 of 21
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Valued Contributor

Re: Banks that let you fund via PayPal with credit card


@delayedsol wrote:

I'm not understanding why you would want to do this. You'd want to have that cash in the bank to pay off the credit card balance, so why can't you just use the cash you have in the bank to fund the account? Unless you're using a card that's within its 0% APR introductory offer, but even then it just seems sketch.


Because then you can make 5% cashback off the transaction. You don't have to pay interest...just pay off the card in full with the cash you would have used to fund the account. 





Message 3 of 21
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Valued Member

Re: Banks that let you fund via PayPal with credit card

@delayedsol the point is to have it count as a purchase. You take that money deposited in the bank to pay off the credit card just like any other purchase. No interest is paid, but you get the 5% bonus from discover since PayPal is a bonus category this quarter

Message 4 of 21
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Mega Contributor

Re: Banks that let you fund via PayPal with credit card


@Neiltyson wrote:

@delayedsol the point is to have it count as a purchase. You take that money deposited in the bank to pay off the credit card just like any other purchase. No interest is paid, but you get the 5% bonus from discover since PayPal is a bonus category this quarter


I want to add, if you are in your 1st year, you get a cashback match, of another 5% on your one year anniversary.

Making it 10%.

 

You also could be in a 0% APR introductory period too.

Message 5 of 21
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Senior Contributor

Re: Banks that let you fund via PayPal with credit card

I thought that 99% of Banks treat it as a cash advance though, so it would really only workout 1% of the time as an actual purchase?

Sounds like a lot of acrobatic work to me.






Message 6 of 21
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Frequent Contributor

Re: Banks that let you fund via PayPal with credit card


@Neiltyson wrote:

@delayedsol the point is to have it count as a purchase. You take that money deposited in the bank to pay off the credit card just like any other purchase. No interest is paid, but you get the 5% bonus from discover since PayPal is a bonus category this quarter


Gotcha. Seems like a lot of effort, especially if you don't need another bank account. Depending on a persons hourly wage, it might make more sense to just stay late at work once or twice.




Message 7 of 21
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Senior Contributor

Re: Banks that let you fund via PayPal with credit card


@Janus wrote:

I thought that 99% of Banks treat it as a cash advance though, so it would really only workout 1% of the time as an actual purchase?

Sounds like a lot of acrobatic work to me.


No, actually it's the other way around - 99% of banks/CUs that allow funding a new account with a CC post it as a purchase. And you can check data points on Doctor of Credit to be sure, and as a failsafe set your cash advance limit to $0 on the card. Earlier this month I funded a new checking and a savings account with $750 each/$1500 total, max was $1k each/$2k total but I prefer to not be too greedy. So an extra $30 in cashback rewards on my PayPal MC, and I think that size of charges and PIF before next due date strengthens my profile with Synchrony.

 


Message 8 of 21
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Valued Contributor

Re: Banks that let you fund via PayPal with credit card


@delayedsol wrote:

@Neiltyson wrote:

@delayedsol the point is to have it count as a purchase. You take that money deposited in the bank to pay off the credit card just like any other purchase. No interest is paid, but you get the 5% bonus from discover since PayPal is a bonus category this quarter


Gotcha. Seems like a lot of effort, especially if you don't need another bank account. Depending on a persons hourly wage, it might make more sense to just stay late at work once or twice.


It's literally one extra step. 
1. Fund bank account with CC

2. Pay off credit card

 

Takes 5 minutes. No overtime needed (which is not an even an option for most people).





Message 9 of 21
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Valued Contributor

Re: Banks that let you fund via PayPal with credit card

How is this not considered manufactured spending? It sounds like laundering cash through a 5% promotion, into a product that will mask it as a transaction, with the result being a cash balance in an account?

Message 10 of 21
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