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Banks that let you fund via PayPal with credit card

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Valued Member

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

@iced yes, this is manufactured spending

 

But "laundering"?? 😂😂 There's nothing illegal about funding your bank account with credit cards dude. That's why the option exists. 

Message 11 of 21
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Valued Contributor

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


@Neiltyson wrote:

@iced yes, this is manufactured spending

 

But "laundering"?? 😂😂 There's nothing illegal about funding your bank account with credit cards dude. That's why the option exists. 


In between laughs, you might want to look up the definition of laundering. Not all forms are illegal as its based on intent, but the process remains the same.

 

The option exists as a convenience to quickly fund an account without having to wire/ACH/paper check funds, not so people can maximize a lolfivepercent quarter.

Message 12 of 21
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Valued Member

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

@iced Ok buddy... Get back to me when YOU look up the definition of laundering 😂😂😂

Message 13 of 21
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Senior Contributor

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


@iced wrote:

@Neiltyson wrote:

@iced yes, this is manufactured spending

 

But "laundering"?? 😂😂 There's nothing illegal about funding your bank account with credit cards dude. That's why the option exists. 


In between laughs, you might want to look up the definition of laundering. Not all forms are illegal as its based on intent, but the process remains the same.

 

The option exists as a convenience to quickly fund an account without having to wire/ACH/paper check funds, not so people can maximize a lolfivepercent quarter.


Why yes, you're correct - the reason I use a CC is to quickly fund an account without having to wire/ACH/paper check funds. Any rewards given for that funding is under the control of the CC issuer, not me.

When Discover's 5% category is grocery a lot of folks max it out buying gift cards, Discover seems to have no problem with that and it freely discussed here on MyFico. Personally I don't play the gift card game, that is too much hassle for the rewards for me.

 

And thanks for the reminder, I really need to do laundry today. Smiley Wink


Message 14 of 21
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Senior Contributor

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


@DaveInAZ wrote:

@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.

 


Intersting, I knew about the funding with CC/debit when opening an account, but I figured it was capped for around $100-200 at most. I generally just use my debit anyways card to open an account. I might have to look into this more, it would eb a way to get more money in at opening. Just recently came real close to not getting the minimum in to the account by the deadline, due to their time frame of verifing the accounts and the time it takes for a transfer to post. lol 






Message 15 of 21
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Mega Contributor

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

@Janus,

You probably might know this?

The Citi DC MC works real well .. I have funded at least 10 Bank/CU accounts ..

Never a cash advance fee.

Message 16 of 21
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Community Leader
Super Contributor

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


@Neiltyson wrote:

@iced yes, this is manufactured spending

 

 


which is something whose discussion would be a violation of the MF TOS as MS is generally considered unethical behavior which if detected leads to card issuers to close accounts.

 

Make sure you characterize activity accurately.

 



(7/2020)
FICO 8 (EX) 798 (TU) 800 (EQ) 793
FICO 9 (EX) 817 (TU) 815 (EQ) 812

$1M+ club

Artist formerly known as ColdFusion
Message 17 of 21
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Senior Contributor

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


@Neiltyson wrote:

@iced yes, this is manufactured spending

 


I would argue that No, it is not MS. You are purchasing a service from the financial institution - fast, efficient funding of your new account. When you use a CC to fund an account the funds are usually available the next day. Compare that to Wells Fargo which only allows an ACH or in branch deposit to fund a new account. I opened a new WF account in early July, and in the online application chose to fund it with an ACH transfer from my local credit union - it took 4 business days for that to be credited and in my available balance. 

 

I also opened accounts in early July at a credit union that offers funding with a CC. I used my PayPal MC for a total of $1500, the CU coded that as a purchase and Synchrony treated as such. My funds were available the next day, which I much prefer. I also use my PP MC to pay my mortgage through Plastiq. Is that MS? After all, I'm paying down debt with credit. I would argue No, I'm purchasing a service from Plastiq, having them send my mortgage payment to the bank instead of having to do it myself, and I always pay my PP MC statement balance in full so any paying down debt with credit is brief & temporary.

 


Message 18 of 21
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Valued Member

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

@the_old_curmudgeon then NO, this is not manufactured spending.

 

The bank is giving you an option to fund with credit card. I am asking which banks also let you fund through PayPal, like the one I mentioned. 

 

THIS IS NOT ILLEGAL OR AGAINST TOS. 

I am not some secret agent helping Paypal or Discover launder money through banks by funding bank accounts. 

You people are crazy. 🙄 

Message 19 of 21
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Valued Member

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

@DaveInAZ yes you explained better than me. Not really MS but just maximizing points.

 

Which credit union was that? 

Message 20 of 21
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