Credit Card Paypal and Points/Cashback

keadd1985

Hi All,

Probably not "officially allowed" but if transferring money to a friend via paypal there are no fees, even when using a credit card to pay for the transfer.


When doing this points or cashback are earned on my Amex cards... My point is I "could" sit transferring constantly getting points, getting the money transferred back to me and using it to then pay the card back off.

I know there are probably rules to stop this though... But.... it works

D_M_E

Works until your friend decides whoeveritis has had enough and eventually hangs on to the funds..................................

SnowTiger

keadd1985 wrote: »

Hi All,

Probably not "officially allowed" but if transferring money to a friend via paypal there are no fees, even when using a credit card to pay for the transfer.

When doing this points or cashback are earned on my Amex cards... My point is I "could" sit transferring constantly getting points, getting the money transferred back to me and using it to then pay the card back off.

I know there are probably rules to stop this though... But.... it works

I've heard this is possible, but I haven't tried it.

One issue you'll likely face is that you and your 'friend' will find your PayPal accounts blocked one day; and you'll be asked to contact customer services.

They will likely want to know why you're shifting money around in this way.

Financial institutions are very jumpy about money laundering and, generally, don't like punters taking advantage of quirks in their systems in the way your outline.

dealer_wins

Absolutely do not do this, unless you like frozen funds and investigations lasting many months!

stevenhp1987

You'll find that either PayPal or Amex (or both!) will shut you down if you continue this for too long, especially with high amounts.

PayPal will simply lock your account while Amex will perform a "financial review" which would result in a closed account with this activity.

Both have systems in place to detect this type of manipulation and won't take very kindly to it. Don't do this if you value your relationship with Amex!