Barclaycard and PayPal - cash or purchase

paddyposh

Hi all

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" transaction?

if the latter, would it be a one time cash advance fee, or would there be monthly interest ?

I have a new 0% purchase and 0% BT card, no money transfer offer which I thought there was previously 

my BC statement says I have a cash withdrawal limit of £1600 (more than I need, I need around 1200) and 28% simple cash rate p/a

reason for this is to pay off a high interest card that I can’t BT to my Barclaycard. I don’t mind a small fee (£30-40) as it’ll save a lot in the long run 

or possible option of my wife creating an invoice on PayPal and me paying that? Whilst I believe we’d lose a few quid once it’s cleared 

grumpy_codger

paddyposh said:

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" transaction?

A recent thread - Sending cash to family via PayPal with HSBC credit card - treated as cash advance?

- not only about HSBC

if the latter, would it be a one time cash advance fee, or would there be monthly interest ?

I think it's either both or neither.

QrizB

If you have a third card, it might (or might not) cost less overall to make the F&F payment from that card and then balance transfer to your Barclaycard.

You'll need to do the sums and see how it works out overall.

paddyposh

QrizB said:

If you have a third card, it might (or might not) cost less overall to make the F&F payment from that card and then balance transfer to your Barclaycard.

You'll need to do the sums and see how it works out overall.

I have a Vanquis one I’ve recently transferred to Barclaycard so I’ve got 100% of the credit on there available. So your example you mean make a F&F payment using that, and then transfer the balance from that once it’s gone through? A good idea but not sure if you can do another BT so soon from the same card (I did that about a week ago)

DullGreyGuy

paddyposh said:

if the latter, would it be a one time cash advance fee, or would there be monthly interest ?

I have a new 0% purchase and 0% BT card, no money transfer offer which I thought there was previously 

my BC statement says I have a cash withdrawal limit of £1600 (more than I need, I need around 1200) and 28% simple cash rate p/a

reason for this is to pay off a high interest card that I can’t BT to my Barclaycard. I don’t mind a small fee (£30-40) as it’ll save a lot in the long run 

or possible option of my wife creating an invoice on PayPal and me paying that? Whilst I believe we’d lose a few quid once it’s cleared 

There is no interest free period on cash advances so if it's counted as cash then you have both the withdrawal fee and immediate interest. 

You can send her money even without her raising an invoice as long as you dont select the F&F option and then she will be charged the merchant fees. How Barclays would feel about if it they discovered is another matter and potentially tempered by the chances of them finding out. 

born_again

Look at it like this.
Make a purchase & you are buying goods/service. Should be no extra charge.

Make a Friends & Family payment & you are sending cash. So expect a cash charge for that. If a seller asks for payment that way. Then tell them NO. As there is no PayPal cover on F&F payments.

DullGreyGuy

born_again said:

Look at it like this.
Make a purchase & you are buying goods/service. Should be no extra charge.

Make a Friends & Family payment & you are sending cash. So expect a cash charge for that. If a seller asks for payment that way. Then tell them NO. As there is no PayPal cover on F&F payments.

The OP is looking to release cash from a credit card, not having a merchant asking them to use F&F

born_again

DullGreyGuy said:

born_again said:

Look at it like this.
Make a purchase & you are buying goods/service. Should be no extra charge.

Make a Friends & Family payment & you are sending cash. So expect a cash charge for that. If a seller asks for payment that way. Then tell them NO. As there is no PayPal cover on F&F payments.

The OP is looking to release cash from a credit card, not having a merchant asking them to use F&F

 option of my wife creating an invoice on PayPal and me paying that? 

paddyposh

I was thinking of doing it via an invoice because that way it would avoid any of the cash charges and can immediately withdraw from PayPal to then pay off my zable card. 

I believe with the amount I’d lose around £35 in the fees based on approx £1200 but that would be a lot less than the interest I’m accruing at the moment. If I’ve calculated it correctly anyway but seems to be around that ballpark figure based on online calculators 

Assuming that sending via F&F would be classed as cash by BC then I would assume it’s cheaper in the long run to do it if that would start to generate interest