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  • FIRST POST
    finance-boy
    I have 2 PayPal accounts - can I send money to myself with a credit card?
    • #1
    • 24th Aug 08, 2:30 AM
    I have 2 PayPal accounts - can I send money to myself with a credit card? 24th Aug 08 at 2:30 AM
    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
Page 1
  • Toilet-Duck
    • #2
    • 24th Aug 08, 3:18 AM
    • #2
    • 24th Aug 08, 3:18 AM
    Yes you can it works fine, however if paypal find out they would probably suspend you account and freeze your funds...
  • CarlSmith
    • #3
    • 24th Aug 08, 6:03 AM
    • #3
    • 24th Aug 08, 6:03 AM
    True, paypal does random check on accounts that has "suspicious" activities.
    Tips on how to manage your credit card debts and assess your credit reports.
  • normanmark
    • #4
    • 24th Aug 08, 7:30 AM
    • #4
    • 24th Aug 08, 7:30 AM
    It wouldnt be classed as a purchase afaik.
  • finance-boy
    • #5
    • 24th Aug 08, 12:54 PM
    • #5
    • 24th Aug 08, 12:54 PM
    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?
    • JoseChungsDoomsday
    • By JoseChungsDoomsday 24th Aug 08, 5:04 PM
    • 742 Posts
    • 220 Thanks
    JoseChungsDoomsday
    • #6
    • 24th Aug 08, 5:04 PM
    • #6
    • 24th Aug 08, 5:04 PM
    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...
    • anactuary
    • By anactuary 24th Aug 08, 8:17 PM
    • 561 Posts
    • 139 Thanks
    anactuary
    • #7
    • 24th Aug 08, 8:17 PM
    • #7
    • 24th Aug 08, 8:17 PM
    Surely the drawback is the fee which Paypal knocks off the amount transferred?
  • finance-boy
    • #8
    • 24th Aug 08, 11:13 PM
    • #8
    • 24th Aug 08, 11:13 PM
    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?
    • DesG
    • By DesG 25th Aug 08, 2:08 PM
    • 1,209 Posts
    • 417 Thanks
    DesG
    • #9
    • 25th Aug 08, 2:08 PM
    • #9
    • 25th Aug 08, 2:08 PM
    6 months I have heard.
    • Richard019
    • By Richard019 25th Aug 08, 2:58 PM
    • 447 Posts
    • 154 Thanks
    Richard019
    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?
    Originally posted by finance-boy
    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.
  • B.E.N
    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?
    • Richard019
    • By Richard019 25th Aug 08, 3:13 PM
    • 447 Posts
    • 154 Thanks
    Richard019
    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?
    Originally posted by B.E.N
    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.
    • JoseChungsDoomsday
    • By JoseChungsDoomsday 25th Aug 08, 5:39 PM
    • 742 Posts
    • 220 Thanks
    JoseChungsDoomsday
    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?
    Originally posted by B.E.N
    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
    • Grade_A_Reject
    • By Grade_A_Reject 25th Aug 08, 8:57 PM
    • 763 Posts
    • 553 Thanks
    Grade_A_Reject
    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?
    "A nation of plenty so concerned with gain" - Isley Brothers - Harvest for the World
  • normanmark
    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?
    Originally posted by Grade_A_Reject
    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
  • HeadInSand
    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
    Originally posted by normanmark
    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.
  • normanmark
    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.
    Originally posted by HeadInSand
    This is the thing, you're assuming that Paypal processes every transaction as purchases on their site. They don't.
    • jpwjpw
    • By jpwjpw 26th Aug 08, 10:43 AM
    • 242 Posts
    • 77 Thanks
    jpwjpw
    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
    Originally posted by normanmark

    Why do you think that? I've bought loads of stuff using my credit card and PayPal and its been treated as a purchase.
  • samhale
    Why do you think that? I've bought loads of stuff using my credit card and PayPal and its been treated as a purchase.
    Originally posted by jpwjpw
    You can send money and call it a gift/household expense/personal payment owed.
  • normanmark
    Why do you think that? I've bought loads of stuff using my credit card and PayPal and its been treated as a purchase.
    Originally posted by jpwjpw
    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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