Paying via PayPal friends and family using a CREDIT CARD (STOP)

newbie8

Hi all,

I've been paying via PayPal friends and family using a credit card for a while now (to earn points/cashback) with no charges from my card provider.

I made a payment to a small independent business last week and received a cash transaction fee. I've never had this before, my card provider said PayPal have recently made changes and started sending payments made via credit card as cash transactions hence the fee. I know it's technically a cash withdrawal but it meant that I could pay without the business getting any bank fees and I got points too. 

So the only way to pay without a fee is debit card or via bank transfer. 

Thanks, 
newbie

born_again

You should not be paying any business by F&F as you then have zero protection.

Fingerbobs

I've used this feature too for quite a few years (for its intended purpose, actually!) and never been charged any fees, but I noticed recently that if I select my Santander credit card (a card I have used for this many times before) as a payment method, a yellow warning box appears telling me a fee will be charged by the card provider. If I choose my Barclaycard, no such warning appears and there's no fees. 

MrFrugalFever

It will all be down to the MCC’s used and how the funding bank interprets them.