Credit Card & PayPal - Cash or Purchase?

ThriftyMister

Hi All, 

Hope you can help.

Does anyone have experience of sending money to friends and family via paypal from a credit card - and whether it was treated as a purchase, or as a "Cash-Alike" transaction?

I've asked paypal and they've basically ignored my message, and I can't call. Their FAQ just says "We don't charge cash advance fees, we aren't liable for fees levvied by card issuers" - but this doesn't explain whether using a credit card to send money to friends and family from paypal is charged as cash or purchase.

I've asked the bank, and they just say "it isn't up to us". Which, well, yes, true.

So I hope someone here has first hand experience of having sent money to friends and family from paypal using a credit card, and can report whether it was treated as a standard purchase by their card issuer or as a cash-like transaction with the associated fees and interest.

(I'm doing this because I had a loan outstanding, I managed to obtain two credit cards neither of which had a sufficient limit to cover the entire loan balance, I managed to transfer £4,200 of it to an MBNA 0% Money Transfer card, and have £2,600 left which I'd like to transfer to my just-approved Santander 0% Purchases for 26 months card, which has been approved with more than a sufficient limit to cover the balance on the loan. It would be nice if I can take advantage of this via paypal to have everything I currently owe at 0%.

I'd send the money to my partner, who would withdraw it to their bank account and then bank transfer it back to me, enabling me to clear my loan balance from the proceeds)

MattMattMattUK

If you make payment for goods or services then the transaction will be processed as a normal transaction from your credit card (and PayPal will charge a fee), if you make the payment as a gift then PayPal will not charge a fee, but will process the transaction as a cash advance, so your credit card will apply the cash advance fees.

Fingerbobs

MattMattMattUK said:

If you make payment for goods or services then the transaction will be processed as a normal transaction from your credit card (and PayPal will charge a fee), if you make the payment as a gift then PayPal will not charge a fee, but will process the transaction as a cash advance, so your credit card will apply the cash advance fees.

This is not correct. 
I have sent money to friends and family a few times (most recently yesterday) via PayPal using a Credit Card as the source, and neither party has ever been charged any fees, nor have any of the transactions been treated as Cash by the credit card. 

ThriftyMister

I think I'll just send £5 to begin with and see how it goes, as there's clearly a lot of heresay and confusion about the matter.

Asghar

ThriftyMister said:

I think I'll just send £5 to begin with and see how it goes, as there's clearly a lot of heresay and confusion about the matter.

Can you let us know how it goes, from the Santander card I presume, and if's its treated as a purchase.

Fingerbobs

ThriftyMister said:

I think I'll just send £5 to begin with and see how it goes, as there's clearly a lot of heresay and confusion about the matter.

No confusion, no hearsay. I have very recent personal experience. NO cash advance fees or interest, and NO PayPal fees. Treated as a purchase. Anyone suggesting differently is making incorrect assumptions.

ThriftyMister

Ashgar - I sure will report back.

Fibgerbobs - my reply wasn't aimed at you, don't get me wrong. I'm very grateful for your personal account and I hope to experience the same myself when I go to do it!

Fingerbobs

ThriftyMister said:

Ashgar - I sure will report back.

Fibgerbobs - my reply wasn't aimed at you, don't get me wrong. I'm very grateful for your personal account and I hope to experience the same myself when I go to do it!

No problem, and my response wan't directed at you either. It just annoys me when people post their guesses and assumptions as facts.

ThriftyMister

Fingerbobs said:

ThriftyMister said:

Ashgar - I sure will report back.

Fibgerbobs - my reply wasn't aimed at you, don't get me wrong. I'm very grateful for your personal account and I hope to experience the same myself when I go to do it!

No problem, and my response wan't directed at you either. It just annoys me when people post their guesses and assumptions as facts.

Couldn't agree more 👍

Asghar

Well I was bored, so a few days go I sent the other half £20 via PayPal using a Virgin credit card.

The payment went through fine with no fees from Virgin (or PayPal) and the transaction is no longer pending on the credit card. Went through as "Professional Services", not a cash transaction.

Not sure what MattMattMattUK was on about, totally incorrect post and not helpful.

VXman

Asghar said:

Well I was bored, so a few days go I sent the other half £20 via PayPal using a Virgin credit card.

The payment went through fine with no fees from Virgin (or PayPal) and the transaction is no longer pending on the credit card. Went through as "Professional Services", not a cash transaction.

Not sure what MattMattMattUK was on about, totally incorrect post and not helpful.

This is interesting. So I could send cash to my own paypal account from a 0% creditcard. Transfer that cash to my bank account. Then put it in my 0.5% Marcus account and make loads of money!
I do miss those days of 7/8% interest rates when you could genuinely make money out of doing stuff like that.