Paypal payment to friend from CC

faddy

Just discovered to my surprise that Paypal don't charge a fee for sending money to a friend (i.e. not a purchase) when a CC is used as the source.

Is this a recent change?

Do card issuers treat such payments as cash transactions?

[Deleted User]

They may well do yes

tryin

Can I use this to get unlimited points? Something seems wrong. Unless it will charge me more interest than the value of the points.

jonesMUFCforever

Points for what?
I don't know any promotional points/cashback etc etc that pay you more than the 3% a cash advance might cost you.

tryin

Meant points for spending with a AMEX card or something like that. Whats the 3% charge you were referring to?

SnowTiger

tryin wrote: »

Can I use this to get unlimited points? Something seems wrong. Unless it will charge me more interest than the value of the points.

You may find you're charged a cash transaction fee and have to pay interest from the date of the payment.

A bigger problem is that you're likely to find your PayPal account locked; and you'll have to contact them to explain why you've been sending hundreds or thousands of pounds through their service.

faddy

!!! wrote: »

They may well do yes

Does this mean that Paypal report (to card issuer) payments to friends or family differently from purchase transactions?

faddy

SnowTiger wrote: »

A bigger problem is that you're likely to find your PayPal account locked; and you'll have to contact them to explain why you've been sending hundreds or thousands of pounds through their service.

I had my Revolut account locked for that exact reason.

eco_warrior

I’ve been involved in disputes regarding friends and family payments and even though it’s apparently a money transfer (and not a purchase) they were successful. PayPal didn’t challenge any of them which surprised me.

One was for a purchase of gold (several thousand pounds worth) - which I was sure would fail

tryin

eco_warrior wrote: »

One was for a purchase of gold (several thousand pounds worth) - which I was sure would fail

Buying gold is a regular purchase. Why should it be treated differently than any other transaction?

Beem1

If it is cash- I believe most cash issuers will treat it as a cash advance as paypal will give a merchant code that will reflect this