Paypal and Credit Cards - sending money

mymindisbroken

Hi all. I've had a search, but wasn't able to find something covering this particular query.

I'm looking to buy a motorbike, and want to use my existing interest-free credit card for part of the transaction - the majority will be cash and this is just to cover the ~£1,500 difference.

If I buy from a private seller rather than a dealer, clearly I would lose the ability to just do a normal credit card transaction. However, if I linked the credit card to Paypal, could I then send them the money that way? Would my credit card see it as a normal purchase and treat it as being interest-free?

Are there any pitfalls I should be aware of?

Not hugely knowledgeable on the subject I'm afraid, so any advice is gratefully received.

[Deleted User]

No, you would lose the section 75 protection.

Or rather, section 75 would only cover you making a payment to PayPal.

mymindisbroken

I've seen those discussions, but the main query is about whether I'd lose the interest-free element for this transaction on the credit card, and if PayPal works differently for credit cards than it did for debit cards (which is all I've used it for previously).

Besides, if this is a private purchase, not via a dealer/business, would there be any consumer protections anyway?

Candyapple

I've got a Tesco 0% purchases card and have made numerous payments via Paypal over the years to pay for things and it is covered under the 0% because they are classed as purchases.

You may want to query whether the seller would indeed accept a large payment via PayPal anyway because of the fees (they'd be charged £51) and also the risk to them of a chargeback/fraudulent payment. Most private sellers wouldn't touch PayPal with a bargepole.

john1002

You would incur a fee for the transaction from Paypal and would need to be sure the seller would accept PayPal as a payment source. I'm sure they would not get charged but someone else might be able to confirm this as if they would then expect that fee to be your responsibility as well. Your credit card would see it as a purchase so would be interest free if your deal is still valid.

John

Shakin_Steve

Is the card interest free for purchases or interest free for money transfers? An interest free money transfer card would allow you to put the money into your bank account and pay the seller from that. There, would, of course, be a fee for this from the card provider, usually 3-4%.