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I have 2 PayPal accounts - can I send money to myself with a credit card?
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# 1
finance-boy
Old 24-08-2008, 2:30 AM
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Default I have 2 PayPal accounts - can I send money to myself with a credit card?

Hello. I have two PayPal accounts (one Premier and one Personal - I think this is okay) linked to different bank accounts and different email addresses. I've used these before to transfer money between bank accounts.

I also have a credit card that gives me 0% interest on purchases for 1 year (HSBC).

I'm a bit cash-strapped at the moment. Would it be possible to "pay" myself with my credit card, via PayPal? If so, would this be charged as a purchase? Would there be any other fees involved that would make my card accrue interest? I really want to keep my card completely interest-free, since the interest-accruing part of one's balance is invariably the last part to be paid-off.

I figure if anyone can help me, it's you guys.

Thanks,
Dan
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# 2
Toilet-Duck
Old 24-08-2008, 3:18 AM
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Yes you can it works fine, however if paypal find out they would probably suspend you account and freeze your funds...
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# 3
CarlSmith
Old 24-08-2008, 6:03 AM
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True, paypal does random check on accounts that has "suspicious" activities.
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# 4
normanmark
Old 24-08-2008, 7:30 AM
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It wouldnt be classed as a purchase afaik.
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# 5
finance-boy
Old 24-08-2008, 12:54 PM
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How do they define suspicious? The same IP address? The amount of money transferred? Similar-sounding account names? I understand that it's okay to send money between bank accounts using PayPal - would a credit card be so different?

Also, if they did freeze my account, how long would it take to get my money back?
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# 6
JoseChungsDoomsday
Old 24-08-2008, 5:04 PM
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they do the checks because what you would be doing is technically breaking money laundering laws. It's a good idea, however if they catch you, you're screwed...
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# 7
anactuary
Old 24-08-2008, 8:17 PM
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Surely the drawback is the fee which Paypal knocks off the amount transferred?
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# 8
finance-boy
Old 24-08-2008, 11:13 PM
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Well, I was going to send it from a business PayPal account to a personal PayPal account, so I don't think there would be a fee. I wouldn't really care anyway, as long as the fee didn't accrue interest.

Also, I thought it was only money laundering if the money came from criminal activities. If they did freeze my account, would I be able to get my money back? How long would it take?
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# 9
DesG
Old 25-08-2008, 2:08 PM
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6 months I have heard.
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# 10
Richard019
Old 25-08-2008, 2:58 PM
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Quote:
Originally Posted by finance-boy View Post
Well, I was going to send it from a business PayPal account to a personal PayPal account, so I don't think there would be a fee. I wouldn't really care anyway, as long as the fee didn't accrue interest.

Also, I thought it was only money laundering if the money came from criminal activities. If they did freeze my account, would I be able to get my money back? How long would it take?
Dictionary.com definition of laundering in relation to money:

"To disguise the source or nature by channeling through an intermediate agent."

Funds of a criminal origin are only mentioned as an example.
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# 11
B.E.N
Old 25-08-2008, 2:58 PM
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Ignore all the people on about "Money Laundering" - seems to be the latest buzzword combination on here.

Paypal have been known to freeze accounts for suspicious activity - lots of criticism of the company - just google "Paypal Sucks", but I can't see why it'd be seen as suspicious (in a criminal funds kind of way). The only problem would be if their computers detect it as suspicious and automatically freeze the account.

It wouldn't matter that you're using different email addresses, as, presumably, the accounts both belong to you, and are named as such. So, they'd "know" anyway.

If you're worried about it, couldn't you just set up another Paypal account in a friend's name, from another computer?
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# 12
Richard019
Old 25-08-2008, 3:13 PM
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Quote:
Originally Posted by B.E.N View Post
Ignore all the people on about "Money Laundering" - seems to be the latest buzzword combination on here.

Paypal have been known to freeze accounts for suspicious activity - lots of criticism of the company - just google "Paypal Sucks", but I can't see why it'd be seen as suspicious (in a criminal funds kind of way). The only problem would be if their computers detect it as suspicious and automatically freeze the account.

It wouldn't matter that you're using different email addresses, as, presumably, the accounts both belong to you, and are named as such. So, they'd "know" anyway.

If you're worried about it, couldn't you just set up another Paypal account in a friend's name, from another computer?
OK so he may not get caught, it doesn't stop it being the case if that's what it is.

For what it's worth I reckon it's more a case of attaining money by deception than laundering, as he's trying to disguise the destination from a lender rather than the source from any relevent body.
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# 13
JoseChungsDoomsday
Old 25-08-2008, 5:39 PM
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Quote:
Originally Posted by B.E.N View Post
Ignore all the people on about "Money Laundering" - seems to be the latest buzzword combination on here.

Paypal have been known to freeze accounts for suspicious activity - lots of criticism of the company - just google "Paypal Sucks", but I can't see why it'd be seen as suspicious (in a criminal funds kind of way). The only problem would be if their computers detect it as suspicious and automatically freeze the account.

It wouldn't matter that you're using different email addresses, as, presumably, the accounts both belong to you, and are named as such. So, they'd "know" anyway.

If you're worried about it, couldn't you just set up another Paypal account in a friend's name, from another computer?
it is easy to give out advise when it isnt you taking the risk.. personally I would rather have piece of mind than worry about being investigated for breaching aml law.

But hey, wont be my head on the chopping block
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# 14
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Old 25-08-2008, 8:57 PM
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I think you might find that in order to accept the funds you will have to pay Paypal fees of around 2.9%. It will be treated as a purchase on the sending card. I don't think it would be classed as money laundering. Paying to get your hands on money you could get for free is hardly going to rank you with the !!!!!. Wouldn't a slow stooze be more beneficial?
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# 15
normanmark
Old 25-08-2008, 11:22 PM
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Quote:
Originally Posted by Grade_A_Reject View Post
I think you might find that in order to accept the funds you will have to pay Paypal fees of around 2.9%. It will be treated as a purchase on the sending card. I don't think it would be classed as money laundering. Paying to get your hands on money you could get for free is hardly going to rank you with the !!!!!. Wouldn't a slow stooze be more beneficial?
It would be classed as a cash advance. As for money laundering, it certainly would fit into the criteria for it. So i wouldnt be surprised if something gets flagged up from the transaction
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# 16
HeadInSand
Old 26-08-2008, 12:29 AM
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Quote:
Originally Posted by normanmark View Post
It would be classed as a cash advance. As for money laundering, it certainly would fit into the criteria for it. So i wouldnt be surprised if something gets flagged up from the transaction
As far as the CC company is concerned you've just bought something via PayPal so I can't see why it would be classed as a cash advance, they wouldn't know it was 'bought' from yourself. Still a bit naughty though and may well end badly.
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# 17
normanmark
Old 26-08-2008, 7:16 AM
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Quote:
Originally Posted by HeadInSand View Post
As far as the CC company is concerned you've just bought something via PayPal so I can't see why it would be classed as a cash advance, they wouldn't know it was 'bought' from yourself. Still a bit naughty though and may well end badly.
This is the thing, you're assuming that Paypal processes every transaction as purchases on their site. They don't.
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# 18
jpwjpw
Old 26-08-2008, 10:43 AM
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Quote:
Originally Posted by normanmark View Post
It would be classed as a cash advance. As for money laundering, it certainly would fit into the criteria for it. So i wouldnt be surprised if something gets flagged up from the transaction

Why do you think that? I've bought loads of stuff using my credit card and PayPal and its been treated as a purchase.
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# 19
samhale
Old 26-08-2008, 4:51 PM
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Quote:
Originally Posted by jpwjpw View Post
Why do you think that? I've bought loads of stuff using my credit card and PayPal and its been treated as a purchase.
You can send money and call it a gift/household expense/personal payment owed.
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# 20
normanmark
Old 26-08-2008, 6:59 PM
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Quote:
Originally Posted by jpwjpw View Post
Why do you think that? I've bought loads of stuff using my credit card and PayPal and its been treated as a purchase.
I actually put through a gambling transaction using the card, used PayPal as a middle man for that transaction and it was put through rightly as a cash advance. PayPal i think will have a system which will look at the payment and decide from there how the transaction is classed as!
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