Using PayPal for 'backdoor' Super Balance Transferring?

Nine_Lives

Apologies if i've got the understanding wrong:

SBT is when you take out a credit card, lets say your limit is 1k, so you send 1k direct from your C/C to your high interest account & stooze away, paying off the minimum before paying it all back at the end?

But i'm sure i've been told cards have been changing that. Either way i've read it's not worth it any more.



Now i've just taken out a card with Tesco for 12 months 0%. Then after a thread, i get the idea. Here's the quotes:

K_P83 wrote: »

Anyway, how do credit cards & eBay go? ....

I'm new to the credit card side of things. I know if you withdrawn from an ATM machine, you get hammered with the rates.

2 questions though...

1. What about buying on eBay using your credit card as default payment?

2. What about paying your seller fees off with a credit card?

Will either of the above incur some similar charge?

izools wrote: »

Ebay fees and PayPal transactions are charged as purchases so no cash associated fees - they'll count in your 12 month interest free.

Also you can PayPal a friend money, ask them to withdraw the cash from their paypal account and send it back to you, and hey presto, interest free cash Although; you do have to pay a small paypal fee.

K_P83 wrote: »

How about if you send it via gift? :beer:

So in theory, i could paypal the full 2.25k allowance i have to my g/f, transfer to her bank from there, withdraw & then pay into say, a lloyds vantage account?

& then do that with a few more 0% cards & before you know it you're performing "back-door" Super Balance Transfers???



Or am i wrong? Is there a catch?

But that's where the replies to my thread ended.


Can this be done then?

My limit is 2.25k on my Tesco card.

Can i PayPal as "a gift" (so no % taken by PayPal) the 2.25k, either in 1 whack or in a few mini transactions, to my g/f's account.
She then takes the amount out of her bank, sticks it in my high interest account.
I pay off the minimum & in 12 months time i pay off the whole lot.



Is there any hidden problems with this that i'm not seeing?

My current stooze method is the simply spend route.

Nine_Lives

Anyone tried this? Any of the experts in the know?

DrScotsman

If you try gifting money with Paypal with a credit card as a funding source a fee is charged.

If you were under the impression there was no fee associated with gifting, it was probably because the default funding source was a bank account (direct debit).

Nine_Lives

I do the occasional selling of parts on a car forum i'm registered on & i always send & receive via gift as it incurs no charge to the seller or buyer.

This isn't a direct debit transfer though. It's using a debit card yes, but not a direct debit transaction.

But there's a charge all the same to a credit card for this method then for sure?

DrScotsman

Your memory is faulty. Paypal says so, and I have checked myself - if you try to gift with a debit or credit card there is a fee (like the page says, can be paid by either).

When you added your bank account to Paypal (which I'm assuming you must have done since you also sell things), they make it compulsory to set up a direct debit on it (or at least they make it very difficult not to). It is the default funding source with every transaction, you have to manually select your debit/credit card if you want otherwise. You have most likely been paying people by this method and not noticing because you selected the same bank account as your debit card.

What bank are you with? You can see if there's a direct debit set up to Paypal online with many banks...

dazza.mk

Just bear in mind situations such as this:

http://www.nopaypal.co.uk/forum/index.php?topic=117.0

Before you try it

Nine_Lives

Are we talking of the same thing?

Log in
Send Money
Click "personal" mini tab half way down page
select "gift" radio button
Fill in details
send money

I've sent money this way over car forums as a buyer and received money this way for forum sales as a seller.

If the item is say £5.00, then the seller has always received the full £5.00 to their paypal account & the buyer has only ever had the full £5.00 no more no less debited from their debit card.

HOWEVER

If the "purchase" mini tab was selected & the "Goods" or "services" radio button were selected for example, then the seller wouldn't receive the FULL £5.00 as paypal would take a percentage of the transfer.



I'm not saying you're wrong, or right. You'll have your own experience. I'm just telling you what's happened to me doing it this route as a seller & a buyer using debit cards (nothing to do with eBay).

Thanks for the link

DrScotsman

K_P83 wrote: »

Are we talking of the same thing?

Log in
Send Money
Click "personal" mini tab half way down page
select "gift" radio button
Fill in details
send money

Yes we are talking about the exact same thing.

On the page after selecting the "gift" radio button - the "Fill in details" page as you call it - what are the first three words under "Payment method"?

Nine_Lives

I'm missing the bit that says "payment method". I totally don't see it. I've had a few tonight, but i've not had that much

I've just gone through the process to send payment to my g/f & it's as it always has been.

DrScotsman

K_P83 wrote: »

I'm missing the bit that says "payment method". I totally don't see it. I've had a few tonight, but i've not had that much

...how can you possibly pay someone if Paypal won't tell you where the money is coming from?

I've just gone through the process to send payment to my g/f & it's as it always has been.

Here's a test you can do: Go to your account, and next to a gift transaction (like you've described) click details. Scroll to the bottom of the page. What does it say next to "Funding Type" and "Funding source"? (Without the unnecessary personal details of course)

And one more test: Go to Profile --> Add or Remove Bank Account. Is your bank account listed? Now go to Add or Remove Card. Is your debit card listed?

And just out of curiosity: On the my account page, under "Welcome, FirstName Lastname", what is your account type?

Nine_Lives

Ah right that's where you're on about. I never noticed that. Here's what it said for me:

Payment Method PayPal Balance £1.01 GBP
Instant Bank Transfer : Halifax Current (Confirmed) x-xxxx £0.99 GBP
PayPal will use MasterCard/Eurocard XXXX-XXXX-XXXX-xxx to fund this transaction if your bank does not have enough funds.

My account type is premier.


Perhaps it's something you're saying which i'm clearly not getting, but i'm no further forward with this here. This is getting sort of of topic now, but i never had problems knowing where my money was coming from. It was always from my debit card (ignoring the fact i'm asking about now making it from the credit card in order to extract ready cash from it).

I've always sent VIA GIFT (sorry if it offends, but i don't buy into the caps = shouting lark) from my debit card when buying items on forums.
I've also always received AS A GIFT to my paypal account from other people when selling items on forums.

Never ever via this method, have i or the other person been charged any extra. If an item cost £5.00, the seller would receive the FULL £5.00 and the buyer would only ever have the full £5.00 debited from their card.

However if the payment method was via goods/services or whatever, then that's when paypal start taking % cuts of the transaction, which is what we try and avoid - hence the via gift route.


I know it's always worked for me & the other individual in the past, so i can't work out why you're saying this can't be the case.