Payment to builder via paypal classed as cash advance? 0% credit card

cardhopper

Just applied for a 0% 18 months on purchases card and potentially would like a builder to do a big job on the house and obviously it would be better for me to spread the cost on the interest free card than using other finance methods.

Not sure if the builder takes credit cards but I think I can transfer money via paypal being funded through my credit card, to his bank account.

Has anyone had any experience with this? Its not worth doing if it appears as a cash advance and I accrue interest at a ridiculous rate!

glentoran99

https://www.paypal.com/us/webapps/helpcenter/helphub/article/?solutionId=FAQ499&topicID=&m=ARA

InsideInsurance

Its a purchase normally but the builder will be charged about 3% and often if they dont normally accept cards they'll ask you to pay more to cover that fee

zaax

Best not to use paypal for a builder as there is no come back if there is a problem, a credit or debit card is best.

A debit card is only 1 percent, which is actually less than paying cash or cheque into a bank

InsideInsurance

zaax wrote: »

A debit card is only 1 percent, which is actually less than paying cash or cheque into a bank

Hu????

For the merchant a debit card is normally a fixed fee, around 35p for an SME and can be under 5p for a large corporation.

Cash is normally a percentage of around 1% but again a cheque is normally a fixed fee.

To get proper protection it has to be paid by credit card to get the S75 protection which I assume is what you are referring to. Its all well and good but if the builder doesnt accept credit cards then the OP can neither get the protection nor the 0% finance. Whilst with PayPal they lose the S75 protection they do at least get the 0% finance.

glentoran99

InsideInsurance wrote: »

Hu????

For the merchant a debit card is normally a fixed fee, around 35p for an SME and can be under 5p for a large corporation.

Cash is normally a percentage of around 1% but again a cheque is normally a fixed fee.

To get proper protection it has to be paid by credit card to get the S75 protection which I assume is what you are referring to. Its all well and good but if the builder doesnt accept credit cards then the OP can neither get the protection nor the 0% finance. Whilst with PayPal they lose the S75 protection they do at least get the 0% finance.

hes talking about paypal fee

InsideInsurance

glentoran99 wrote: »

hes talking about paypal fee

PayPal dont have a standard 1% fee for anything.

If the OP notes it as sending money to a friend then a debit card is free and a credit card is 3.4%+20p

If they do it as a purchase, assuming the builder hasnt negotiated volume discounting etc, then all transactions are 3.4%+20p for both debit and credit cards.

I assume that paypal justify the extra by way of the fact you get Buyer Protection which they fund with the heightened fees

jonesMUFCforever

..........a builder taking credit cards ha ha - ones I know are cash only.