cash advance loophole?

bagslife86

hi,

would i be correct in saying that if i added my credit card to my paypal, sent money to my partners paypal, which she then withdrew to her bank account and lifted at an ATM, this would qualify as a purchase rather than a cash advance on my credit card bill??

thanks alot

indierocker85

I wondered this, but I am not sure what it would go as on your statement.

bagslife86

i thought i cash advance was only if you lifted money at an ATM with your credit card.

you can also select that the payment to another paypal is for goods, services etc, which would surely mean it would be classed as a purchase?

Malky

I would have thought so. It's a long winded way of doing it but should go through as a purchase and you're avoiding a high APR rate.

DaveLy

paypal will still charge 2.9% or something close to it for a processing the cc payment (payable by either the sender or reciever)

bagslife86

DaveLy wrote: »

paypal will still charge 2.9% or something close to it for a processing the cc payment (payable by either the sender or reciever)

really? the don't charge anything when you are buying something on ebay and paying by paypal/credit card?

bagslife86

bagslife86 wrote: »

really? the don't charge anything when you are buying something on ebay and paying by paypal/credit card?

just looked it up and this is indeed the case, but its still better than paying monthly interest on the cash advance, especially whenever the initial cash advance fee is £3 (atleast) or 3%!!!

lisyloo

i thought i cash advance was only if you lifted money at an ATM with your credit card.

This is wrong.
Buying foreign currency is usually classed as cash.
Creditiing on-line betting site is usually classed as cash.

really? the don't charge anything when you are buying something on ebay and paying by paypal/credit card?

Buying something is called a "puchase".
Sending money is not a purchase.

I would suggest that you check with your credit card provider whether sending money via paypal is classed as a purchase or cash advance.

bagslife86

lisyloo wrote: »

Buying something is called a "puchase".
Sending money is not a purchase.

sending money for something you have purchased, is a purchase.

you can select on paypal that the reason you are sending the funds is for the purchase of goods or services.

how would this not be classed by the credit card company as a purchase??

dtaylor84

bagslife86 wrote: »

really? the don't charge anything when you are buying something on ebay and paying by paypal/credit card?

Yes, they do. But they charge the seller and you don't see the charge.

bagslife86

phoned the credit card company, paypal is infact classed as a purchase!

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