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Using Paypal to turbocharge Stoozing

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Hi all

Today I opened a Cahoot account and sent the majority of my money there.  I then realised that I had a payment I needed to make, and it will take 7 days before my internet banking is up and running with Cahoot.  Rather than call them and try and return some of the money over the phone, I instead decided to send some money to my partner via Paypal Friends and Family option, and fund this using my Amex Card which is linked to my Paypal account.  The idea is that my partner then sends the money back to my Paypal account and I then withdraw it to one of my linked bank accounts.  So essentially I have lent money to myself via my Amex credit limit.  I always pay the Amex off in full every month so there's no issue here in terms of being charged any interest.

This got me thinking - what if I did exactly the same as above but with a 0% credit card instead which I then made only the minimum payment for each month?  I could then essentially lend myself whatever my credit limit is, stick this in a high interest savings account and then pay off the credit card in full at the end of the 0% period.

My only concern is, the credit cards are 0% on purchases specifically - would the above count as a "purchase" if it's done via the friends and family option on Paypal?  I suppose I could do it with just a small amount to start with and see if I'm charged any interest on it at the end of the month, but thought I would also ask here to see if anyone has done anything similar.

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  • daivid
    daivid Posts: 1,243 Forumite
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    If the paypal transactions get treated as cash payments then you will end up with a significant cash advance fee. I don’t know the ins and outs of this with paypal but have heard caution is needed.
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