Paypal / cashback

kriss_boy

My amex gives me 5% cash back on purchases for 3 months.

So in theory couldnt I transfer funds into my paypal account from the card... and then withdraw those funds to my bank?

That way Im getting the money out of the card and into my account, making 5% all to myself?

BigDunc

Check your terms and conditions. This would probably be treated as a cash advance and would most likely be exempt from the 5% cashback. Even worse, you might find that you are charged interest from the day you take the cash out, as opposed to purchases on a credit card where you don't pay interest until your statement due date.

kriss_boy

But you can pay for things on paypal with mastercard surely? And those payments are fine? When I get my current credit card statment every month everything on it is paypal!!

I cant see how they could distinguish it between other payments? I buy and sell lots of things on ebay, purely for personal use. dvds etc, so i can put a lot from my current credit card, probably between £100 - £300 a month on ebay.

So using my 5% amex card Ill save a small amount.

kriss_boy

I have two paypal accounts too... so i could pay one account with the other... then withdrwn it.... although the fees would use most of the 5%!

JohalaReewi

If you use Amex on Paypal you are charged in USD (even if you buy goods in GBP) so you get a commission hit by Amex for the USD to GBP exchange conversion. Paypal's conversion to USD probably has some loading too.

JohalaReewi

kriss_boy wrote: »

I have two paypal accounts too... so i could pay one account with the other... then withdrwn it.... although the fees would use most of the 5%!

if Paypal got as much as a whiff of what you were doing they would block all of your accounts and all your money woudl be frozen never to see the light of day again.

nomoneytoday

You would be charged 3.4% by Paypal if it was processed as a purchase of goods or services....