Pay Pal and Credit Cards. Intrest Free Loan?

mvodden

I recently bought an item from Ebay and I paid for the item using Pay Pal. I didnt have enough funds in my Pay Pal account but that didn't matter as I had linked my credit card to the account so the funds were automatically taken from there.

I noticed that Pay Pal or my credit card company didn't charge me any extra fees for doing this, so this got me thinking.

If you linked a 0% interest credit card for purchases to Pay Pal, could you send you wife/partner money using Pay Pal which they could withdraw as cash into their bank account and avoid paying the 3% or so cash advanced fee from the credit card company and invest the money for the period of interest free?

Is this legal? I sent the money direct and not through ebay and selected reason for sending as goods.

Regadrs

Mike.

nomoneytoday

Paypal charge the recipient 3.4% plus 20p so it won't work

Sorry

goonasuk

nomoneytoday wrote: »

Paypal charge the recipient 3.4% plus 20p so it won't work

Sorry

they charge 0% if you send it as a 'gift'.

nzseries1

goonasuk wrote: »

they charge 0% if you send it as a 'gift'.

I personally don't believe this is true.

To receive credit card payments, you either have to have a merchant account, or you have to pay the 3.4% fee.

Paypal give you nothing for free, trust me.

goonasuk

nzseries1 wrote: »

I personally don't believe this is true.

To receive credit card payments, you either have to have a merchant account, or you have to pay the 3.4% fee.

Paypal give you nothing for free, trust me.

Don't believe it then.

nzseries1

goonasuk wrote: »

Don't believe it then.

From this page for American accounts:
http://www.paypal.com/cgi-bin/webscr?cmd=p/gen/fees-outside

Personal accounts are free, but may not receive debit or credit card payments.


From this page for European accounts:
https://www.paypal.com/cgi-bin/webscr?cmd=_display-fees-outside&countries=EU

Free when the money comes from PayPal balance or bank account.
3.4% + €0.35 EUR when the money comes from a debit or credit card or PayPal Credit
(the sender decides who pays this fee).


No mention of a "gift" option for American or European accounts. If you can provide a link to a "gift" option that is free, I will gladly retract my statement.

sorbet74

I was asking a similar thing in another thread.

I'm buying a car from a friend and if I could use the credit card through PayPal and IF it was classed as a purchase by the CC company (HBOS), I have an offer of 0% for 12 months on purchases.

Even with the PayPal fee (2.9%, the amount is £2000) it would be cheaper than sending him a CC cheque (19.95% APR).

Anyone know the answer?