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PSA: PayPal Send Money to Friends & Family
May 27, 2021 at
10:49 PM
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Finance
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The New York Times Store
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Last Edited by 1dash1 August 7, 2021 at 12:53 PM
For those of you who use PayPal's send money to friend and family using a credit card, you might already be aware of PayPal's fee: 2.9% of the amount being sent + $0.30 fixed fee.
However, you might not be aware that many banks now consider such credit card charges as cash advances and subject to hefty cash advance fees.
I checked with Customer Service for the following banks today, with the results as follows:
Examples: For Bank of America and Chase credit cards, the transaction fee is $10 or 5% of the amount being transferred (whichever is greater) plus interest charges begin accruing immediately at the applicable interest rate, typically around 25% APR.
These results are subject to change at any time. I recommend that you check with your financial institution before sending money via PayPal to friend and family using a credit card.
Note: You can avoid all of the above PayPal and bank fees by using a different funding source, say your PayPal account balance or linked bank savings/checking account. You can also avoid fees by using an Amex Send Account.
For more info:
https://www.nytimes.com/2020/04/2...ments.html
https://www.doctorofcre
However, you might not be aware that many banks now consider such credit card charges as cash advances and subject to hefty cash advance fees.
I checked with Customer Service for the following banks today, with the results as follows:
- Bank of America, Chase, Citi, USAA _ These banks consider PayPal send cash from credit cards to be cash advances.
- Amex, Discover _ These banks do not consider PayPal send cash from credit cards to be cash advances.
Examples: For Bank of America and Chase credit cards, the transaction fee is $10 or 5% of the amount being transferred (whichever is greater) plus interest charges begin accruing immediately at the applicable interest rate, typically around 25% APR.
These results are subject to change at any time. I recommend that you check with your financial institution before sending money via PayPal to friend and family using a credit card.
Note: You can avoid all of the above PayPal and bank fees by using a different funding source, say your PayPal account balance or linked bank savings/checking account. You can also avoid fees by using an Amex Send Account.
For more info:
https://www.nytimes.com/2020/04/2...ments.html
https://www.doctorofcre
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