Paypal payment to friend from CC

faddy

tryin wrote: »

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

I'm a bit confused by eco_warrior's comment but they seem to be saying that Paypal's buyer protection worked even though payments were made as to friends and family rather than as purchases.

faddy

Beem1 wrote: »

If it is cash- I believe most cash issuers will treat it as a cash advance as paypal will give amerchat codet hat will reflect this

Is that an educated guess about the merchant code or have you experience of being charged a cash fee by a card issuer?

SnowTiger

faddy wrote: »

Is that an educated guess about the merchant code or have you experience of being charged a cash fee by a card issuer?

Presumably the transaction has hit your credit card account now.

In my (very limited) experience card providers will add their cash fee when the transaction is posted to the account.

Some—Lloyds group, Barclaycard and Tesco spring to mind—will show the Merchant Category Code description.

Beem1

SnowTiger wrote: »

Presumably the transaction has hit your credit card account now.

In my (very limited) experience card providers will add their cash fee when the transaction is posted to the account.

Some—Lloyds group, Barclaycard and Tesco spring to mind—will show the Merchant Category Code description.

I have experienced it with tesco credit card via curve

faddy

Beem1 wrote: »

I have experienced it with tesco credit card via curve

I believe Tesco is the only card issuer that now makes a charge for use via Curve.

newbieFTB

faddy wrote: »

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?

It's definitely a change but not sure when it was introduced, I know that paypal only used to allow you to fund a fee free 'personal' payment with a paypal balance or when the funding source was the bank account. If the funding source was a credit card they charged a fee.

I noticed in January this year that they were now allowing any/all funding sources, including credit cards with no fees - I paid £700 on a John Lewis credit card via paypal friends/family/personal or whatever it's called. There were no fees at either sender/receiver end and the payment appeared on my John Lewis statement as a regular purchase and not a cash advance or anything like that.

So essentially a way to obtain cash from a credit card without incurring fees - at least in my case iowth the John Lewis credit card (a HSBC brand I believe). I wonder if it has something to do with card issuers no longer being allowed to charge extra for credit card transactions in comparison to other payment options?

eco_warrior

Sorry forgot I’d posted on this thread

It was a purchase to have gold delivered rather than an investment so I found it odd to do through friends and family. And yes the chargeback worked even though it was more of a cash transfer than a purchase.

TCA

newbieFTB wrote: »

I noticed in January this year that they were now allowing any/all funding sources, including credit cards with no fees - I paid £700 on a John Lewis credit card via paypal friends/family/personal or whatever it's called. There were no fees at either sender/receiver end and the payment appeared on my John Lewis statement as a regular purchase and not a cash advance or anything like that.

So essentially a way to obtain cash from a credit card without incurring fees - at least in my case with the John Lewis credit card (a HSBC brand I believe). I wonder if it has something to do with card issuers no longer being allowed to charge extra for credit card transactions in comparison to other payment options?

Thanks, that's good to know. Due to a hiccup with a new debit card I've had to add my credit card to PayPal to make a few personal payments.

Anyone else able to confirm that their credit card issuer does not charge fees by treating the friends and family PayPal payment as as a cash advance?

born_again

eco_warrior wrote: »

Sorry forgot I’d posted on this thread

And yes the chargeback worked even though it was more of a cash transfer than a purchase.

The only thing I have found out on this is PayPal will then chase the account holder to get the money back. Which can include a debt collection agency if they feel the need.

Seems that PayPal are not contesting the chargeback, as they could easily do. Instead they get it back form where it went.