Using PayPal to abuse credit card

Curls2208

So here is something interesting I have just thought about and I wanted to ask you clever people on if my idea has already been done, if it’s legal or taboo and if it actually works.

My PayPal is linked to my credit card. Always has been.
I went on a betting website today and deposited £10, and bam, straight from the credit card through PayPal into the betting account.

Then later if I choose to withdraw this money...it goes back into the PayPal account as...you got it. PayPal balance.
Which I can then withdraw into my bank account.

So for me this would actually be a useful little loan right now to get some money into my account and then pay credit card off on payday. But is this technique illegal and can it even be done? I don’t want to get in trouble...but when thinking about it. If done right on 0% cards this could be the ultimate and quickest form of stoozing?

I must be missing something here but the logic seems to be fine.

By the way sorry if this is in the wrong sub-forum.

[Deleted User]

You will find something like this in the T&C for most bookies:

8.3 Your account should not be used as a banking facility and deposits should only be made with a view to using funds to place bets. Should you make repeated deposits and withdrawals without commensurate bets being placed, we reserve the right to pass on to your accounts, without prior notice, any bank charges we have incurred before closing the account.

Curls2208

Ahhhhh. So the bookies don’t like it! Makes sense, it definitely didn’t see, to be too legit but thanks for pointing that out.

Well I shall see how my £10 bet does, maybe it’ll make me millions,

Thanks for advice.

[Deleted User]

Most credit cards treat gambling transactions as cash advances.

crumpetman

If you want to go down that route with paypal and credit cards then find a friend to send money to via paypal, use your credit card as the funding source and the friend can withdraw the cash and give it back or transfer it to you via some other means.

Curls2208

You sir. Are a genius.

Ben8282

Can you actually do this, I mean deposit money onto a betting website and then withdraw it? Withdraw winnings obviously yes but can you actually withdraw money deposited rather than having to use it for gambling on the site?

Zero_Sum

Can you have 2 paypal accounts & just send money to yourself?

Terry_Towelling

Presumably the betting website will see a deposit from PayPal and will have no idea where the PayPal funding came from - can you confirm what retailer name appears on your card account and what is shown as the funding source in your betting account? So the first question is, does your bank see transactions from PayPal as cash or as purchases? If they see them as purchases, you are not going to get cash fees or interest charged by them - and that is good.

The next question (as raised by others) is whether the betting site will allow you to withdraw in this way. If they do (and it seems they do) you will have to be careful not to fall foul of their T&Cs or your betting account may be closed after the deduction of charges by the betting company.

Curls2208

You can yes. How can they stop you if you have a change of heart and don’t want to bet anymore. Although I imagine that if you deposit and instantly withdraw the same amount then the alarm bells may ring for abusing it as a bank account style process.

Fingerbobs

When I pay for stuff on eBay using PayPal, I always use a credit card as the funding source. On the odd occasion I've received refunds via PayPal, the credit has gone back directly onto my credit card, not into my PayPal balance.