AmEx credit card

Omega7 · 14 February 2019 at 1:06PM

Hi all

I'm looking to get an AmEx credit card in the next month or two. Waiting for the Samsung s10 5G to come out. Thinking might as well start the card with a big purchase as it 5% cash back rate for the first 3 months. Then use it as normal for card purchases only and build on my credit score.

I've read that for the cash back to be paid I need to spend £3000 a year on it. I'm probably going to be able to do that but want to know of I'm short let's say £500. Can I just link the card to PayPal and send £500 to a friend/family member who would give me the money back?

Thanks.

stevenhp1987 · 14 February 2019 at 1:13PM

Omega7 wrote: »

Hi all

I'm looking to get an AmEx credit card in the next month or two. Waiting for the Samsung s10 5G to come out. Thinking might as well start the card with a big purchase as it 5% cash back rate for the first 3 months. Then use it as normal for card purchases only and build on my credit score.

I've read that for the cash back to be paid I need to spend £3000 a year on it. I'm probably going to be able to do that but want to know of I'm short let's say £500. Can I just link the card to PayPal and send £500 to a friend/family member who would give me the money back?

Thanks.

No.

That's a cash advance and will potentially get you banned by Amex. I'd be surprised if PayPal let you send funds for a non-purchase using Amex.

If that were a possibility then everyone would be doing it in an infinite loop gaining unlimited cashback/points etc.

MallyGirl · 14 February 2019 at 1:16PM

If you were that close I am sure you could buy storecards for the places you usually shop.
£3k in a year including a big phone purchase shouldn't be too much of a challenge - petrol, food, etc soon add up

Ben8282 · 14 February 2019 at 9:36PM

£3000 over a year is an average of £250 per-month. Surely you can spend that ... petrol, groceries etc

[Deleted User] · 14 February 2019 at 9:45PM

No because that’s a cash purchase/advance.

Also don’t try and build on a fictional score

jpwjpw · 17 February 2019 at 5:03PM

You can do it, and there is no fee to do it either. However, it's against both Amex and Paypal's terms and conditions (using a credit card to send cash, rather than pay for goods), so Amex and/or Paypal may ban you if they find out.

bstepo1 · 17 February 2019 at 9:06PM

PayPal allows it and PayPal will usually do nothing about despite it being against their T&C's however it is definitely against American Express' Cardmember Agreement.

This type of transaction does spook Amex out and will certainly lead to a Financial Review (they ask you for p60's and bank statements and freeze your card(s) whilst going over your finances with a fine tooth comb). I also believe PayPal does charge a fee so you have to think is it worth it for what you're getting back/risking your relationship with Amex and if you can't even meet the minimum spend threshold is this the right card for you?

Some alternatives.....

Amex Gold - Minimum spend of £2k and you cant get £100 in vouchers or 20,000 bonus Avios

or perhaps even the American Express Platinum Everyday Cashback card

or the next best thing Tandem's Cashback Card at an earning rate of 0.5%

guesswho2000 · 19 February 2019 at 7:37AM

Omega7 wrote: »

Hi all

I'm looking to get an AmEx credit card in the next month or two. Waiting for the Samsung s10 5G to come out. Thinking might as well start the card with a big purchase as it 5% cash back rate for the first 3 months. Then use it as normal for card purchases only and build on my credit score.

I've read that for the cash back to be paid I need to spend £3000 a year on it. I'm probably going to be able to do that but want to know of I'm short let's say £500. Can I just link the card to PayPal and send £500 to a friend/family member who would give me the money back?

Thanks.

Despite what others have said, you can indeed do this, and it will count as a purchase, I'm 100% certain of it. In general, sending cash is exactly that, a cash transaction, but PayPal is a payment processor treated as a purchase by every card provider I've ever come across (including Amex UK), as it's primary function is to pay for things (goods/services) rather than transfer cash, such as with Transferwise.

However, PayPal anti money laundering/fraud checks are trigger happy, and you could end up with your account frozen pending checks, that said it's unlikely as a one off £500 transaction (unless the accounts are brand new). You could also trigger a financial review with Amex, but that's very unlikely with a £500 transaction (Amex won't know what you've spent £500 on, and it's not exactly a giant sum on money - try and funnel several grand this way in a short space of time, and it's a different story).

The main downside is that PayPal fees are around 3.25%, which erodes much of the value of the cashback you'll earn from the transaction (and leaves you at a loss outside the introductory 5% earning period).

jpwjpw · 19 February 2019 at 8:18PM

Paypal fees on sending to friends and family are 0%. Even with credit cards. Again, it's against the T+Cs to do it though

NoodleDoodleMan · 21 February 2019 at 10:28AM

Thinking might as well start the card with a big purchase as it 5% cash back rate for the first 3 months.

The 5% cashback deal is limited to £2500 of purchases I'm thinking - however £125 is a nice little earner nevertheless.

My Amex card is linked to PayPal (for Ebay purchases) but I'd be wary of trying to use it to send funds via the credit card, as PayPal has its own system for that procedure.

newuser86 · 21 February 2019 at 10:51AM

You will be amazed how much you can spend with it if you use it for daily purchases each day.. especially if you're doing a big purchase anyway

AmEx credit card

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