MBNA Credit Card Trick That might work & Paypal

stehouk

Has anyone topped up their paypal account from a credit card, is it classed as a cash transaction ?

adindas

joseph3

I could fully follow the logic of what you are trying to do.

I understand that sending a small amount of money to a friend via PP is still free.

But here you will need to send quite large sum of money (large by PP Standard) and you will not be sending the money to a friend. If you take your money out of your PayPal Account (not via sending money to a friend) via email+Bank AC, is there any fee to pay???? If yes how much ??

In a few cases 0% BT creditcards has no BT fee at all, while this thing hardly ever happen in money tranfer CC. Even if there is BT fee to pay in majority of cases (if not all) 0% BT CC fee is lower than 0% money trasnfer CC.

So if there is no fee to pay (from PayPal side) than I think it is a brilliant idea to transform a 0% BT credit card to become 0% money trasnfer Creditcard.

I only have one PP account, I do not have a business account with PP. If other people could try and report back their personal experience, we could learn more about this method.

adindas

stehouk wrote: »

Has anyone topped up their paypal account from a credit card, is it classed as a cash transaction ?

I think the answer of your question has already been provided by

joseph3

in Post #11 and Post #17. But in this case he is using two PP account one of them is a busness account.

jcontest

When someone said it looks like fraud, I guess they are comparing it to schemes like Carousel Fraud.


You said your going to charge it to a business account, so in the short term there should also be VAT implications?


When I make purchases with my Curve card, there is now a transaction type flag sent back to my bank. So "Cash" transactions can incur a large fee on the credit card. Previously it was okay to use it to withdraw straight from CC to ATM. And in the past I have been able to move money straight from CC into Debit account.


What your asking to do is similar to this, but your going to lie and make it look like a purchase. From what I see there is a 2.98% transfer fee and that's what it looks like your wanting to get away from.


I have personally seen PayPal freeze accounts because something looks a bit iffy. What your describing is a bit iffy. Moving it from personal to business accounts and then back again seems to be a bad idea too.


If it was that easy and legitimate to make fake purchases then a lot of us would max out our reward cards every month, and fully pay them off the next month. I would love to earn free first class flights every year without actually spending any money. 12% cashback on money I don't have - yes please. Both of those are along the lines of what your wanting to do, so are they okay too? I think the term is coined as "Manufactured Spend" and card companies do not allow it (Illegal and Not allowed are two different things).


My biggest worry would be VAT fraud investigations.

[Deleted User]

PayPal are known to be a pain in the backside regarding freezing accounts, and generally their customer service is questionable (I only finally got my complaint resolved after emailing CEO's office).

Whether it is or isn't fraud isn't really the point, the fact people are saying it looks LIKE fraud or as jcontest above puts it, is "iffy" will mean you've got hell to pay if they block either or both of your accounts.

You may well get away with it, but PayPal are a shambles and if they block your account best of luck getting that money out any time soon.

Also, they can load a CIFAS marker if they THINK it's fraud. Although I believe providers are supposed to have a reasonable level of proof (e.g. civil standard, balance of probabilities) before loading a marker, there are many many stories of markers being loaded incorrectly.

CIFAS is a great tool for detecting and preventing fraud, I've seen very good use of it, but it's also very much like a kangaroo court and IF a marker is loaded that'll be far more costly than getting any quick cash out of your CCs.

Best bet would be the "two card trick" of getting a Money Transfer card to your bank account and then balance transferring to that card. Yes you pay some fees, but there's no way an institution could load a CIFAS for that - and although it may be against the "spirit" of T&Cs, there's nothing to block it - they don't mandate that you must hold the funds for 3 months before repayment, or charge a minimum interest amount, for example.

I'd focus on the latter rather than paypal - and this is coming from someone that has previously used Curve and manufactured spend! I just don't think it's worth the risk abusing your PayPal accounts - if you've got away with it this time that's great, but I certainly wouldn't risk doing it again

Sad_Dad

Somerset_La_La_La wrote: »

I'd focus on the latter rather than paypal - and this is coming from someone that has previously used Curve and manufactured spend! I just don't think it's worth the risk abusing your PayPal accounts - if you've got away with it this time that's great, but I certainly wouldn't risk doing it again

I've transferred money from my paypal to my wife's paypal account plenty of times using a credit card without any issues.

Do you think using Curve would be safer or still not worth the risk?

jcontest

Sad_Dad wrote: »

I've transferred money from my paypal to my wife's paypal account plenty of times using a credit card without any issues.

Do you think using Curve would be safer or still not worth the risk?

Curve now passing the transaction type means you can no longer have a manufactured spend.

It would look like a "Cash" transaction. There are things you could do like loading gift cards and such. It was even possible at one point (not sure now) to add money to Amazon pay with a CC, transfer it to another account, then deposit it to a bank.

Methods like this carry some risk, that the cash will get held in limbo while someone looks into what your doing. So if your wanting to do this make sure you can manage a few months if the cash does get frozen.

Sad_Dad

Interesting stuff.

I used paypal this evening to send money to my wife using my Curve card. So I will probably get charged a fee for this.

If I send money from paypal using a credit card directly, at the moment I won't be charged but I run the risk of
my paypal (or/and my wife's) account being frozen.

I want to transfer £25k from my new MBNA card into our current account. A few hundred a day within 60 days should work providing Paypal don't freeze our accounts.

jcontest

Sad_Dad wrote: »

Interesting stuff.

I used paypal this evening to send money to my wife using my Curve card. So I will probably get charged a fee for this.

If I send money from paypal using a credit card directly, at the moment I won't be charged but I run the risk of
my paypal (or/and my wife's) account being frozen.

I want to transfer £25k from my new MBNA card into our current account. A few hundred a day within 60 days should work providing Paypal don't freeze our accounts.

Make sure both paypal accounts are verified. Be prepared to show proof of ID on both accounts. I would send a test amount from a credit card first, once it goes through then see if you can get the transaction information from the card issuer - to know if it will have a cash advance fee. There are multiple ways to send it, but some incur a charge, others do not, but I don't keep up with PP so perhaps things have changed a lot.


(I am not big on PayPal, I had a dispute with them probably 15+ years ago and resolution was not possible).


If you can cycle money through it without incurring any charge, then it's obviously a loophole that they will eventually fix (when it makes monetary sense to do so).

Sad_Dad

Both PP accounts we have had for a while and are verified.

No charges so far on the cards I have used to transfer money.

More than likely they will close this I am going to stick to small transfer amounts just in case they do freeze any of our accounts.