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Paypal Question!

post #1 of 19
7/29/09 at 1:19am
Thread Starter 
Now that paypal has this new "personal payment" option where there are no fees... I tried, and you can send a personal payment off your credit card. So, what's stopping me from sending my brother $50,000 off my amex through personal payment - I get 1.25% cashback, he gets all $50,000, he withdraws the money to his bank (also free), and hands me the cash, I pay off my amex bill and do it again; I make $625, amex clobbers paypal with ridiculous fees, paypal gets raped up the ass with (somewhere in the ballpark of) $1500 in fees, and everyone's happy - It's like a win-win-win situation! Discuss!
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post #2 of 19
7/29/09 at 1:23am
My understanding was that "personal payments" only applied to funds drawn from your bank account.
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post #3 of 19
7/29/09 at 1:25am
Thread Starter 
Quote:
Originally Posted by mccvi View Post
My understanding was that "personal payments" only applied to funds drawn from your bank account.
I thought so too - but I tried it today and sent a personal payment off my AMEX...no fees for the seller, no problems!
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post #4 of 19
7/29/09 at 1:26am
this has potential.
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post #5 of 19
7/29/09 at 1:31am
if you fund personal payment by credit card, there is a fee taken.
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post #6 of 19
7/29/09 at 1:38am
Quote:
Originally Posted by whusurdadi View Post
I thought so too - but I tried it today and sent a personal payment off my AMEX...no fees for the seller, no problems!

Go ahead and send $50k and see what happens when your brother tries to withdraw, see if they don't flag that

6.2 Withdrawal Limits. Depending on the degree to which you have Verified your Account, we may limit you to withdrawing no more than $500.00 USD per month. You can view your withdrawal limit, if any, by logging into your Account and clicking on the "View Limits" link on the "Account Overview". In addition, we may delay withdrawals of large sums of money while we screen for risk.

We may close, suspend, or limit your access to your Account or the Services (such as limiting access to any of your Payment Sources, and your ability to send money, make withdrawals, or remove financial Information);

We may hold your funds for up to 180 Days if reasonably needed to protect against the risk of liability; and

We may take legal action against you.

Sounds totally worth having $50k locked up in Paypal for $625
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post #7 of 19
7/29/09 at 1:29pm
Thread Starter 
Quote:
Originally Posted by Night Owl View Post
Go ahead and send $50k and see what happens when your brother tries to withdraw, see if they don't flag that

6.2 Withdrawal Limits. Depending on the degree to which you have Verified your Account, we may limit you to withdrawing no more than $500.00 USD per month. You can view your withdrawal limit, if any, by logging into your Account and clicking on the "View Limits" link on the "Account Overview". In addition, we may delay withdrawals of large sums of money while we screen for risk.

We may close, suspend, or limit your access to your Account or the Services (such as limiting access to any of your Payment Sources, and your ability to send money, make withdrawals, or remove financial Information);

We may hold your funds for up to 180 Days if reasonably needed to protect against the risk of liability; and

We may take legal action against you.

Sounds totally worth having $50k locked up in Paypal for $625

I was being sarcastic with the $50k...Back when I was an ebay sleer I moved $25k a month and never had a freeze like that...
I meant, what if I sent $2k, then $5k, etc...and the cashback will keep adding up...
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post #8 of 19
7/29/09 at 3:08pm
There's a fee...

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post #9 of 19
7/29/09 at 4:22pm
25K a month on Ebay??
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post #10 of 19
7/29/09 at 7:46pm
I would say your brother gets butt raped come tax time when he has to explain all this income.

I think anything over 10k as a bank transaction is reported. . .
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post #11 of 19
7/29/09 at 7:55pm
I'm no finance wizz... but this might work. Basically, send money (your CC limit) to "someone", as long as it gets charged on your CREDIT CARD... for which you have 30-45 days to pay, then take that money, invest in GIC, earn x%, then pay back your credit card with the money, but you've essentially borrowed money from the CC company, earned interest on it... without actually having to have the capital in your account. Can someone explain to me why that wouldn't work in theory? all I can think of is transfer fees, or buy/sell fees for the bonds/stocks...
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post #12 of 19
7/29/09 at 8:26pm
Isn't there a fee on the recipient side?
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post #13 of 19
7/29/09 at 8:46pm
Quote:
Originally Posted by whusurdadi View Post
Back when I was an ebay sleer I moved $25k a month and never had a freeze like that...

What did you sell, houses?
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post #14 of 19
7/29/09 at 8:54pm
Thread Starter 
Quote:
Originally Posted by winston View Post
What did you sell, houses?

kidneys
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post #15 of 19
7/29/09 at 10:08pm
Quote:
Originally Posted by Master-Classter View Post
I'm no finance wizz... but this might work. Basically, send money (your CC limit) to "someone", as long as it gets charged on your CREDIT CARD... for which you have 30-45 days to pay, then take that money, invest in GIC, earn x%, then pay back your credit card with the money, but you've essentially borrowed money from the CC company, earned interest on it... without actually having to have the capital in your account.

Can someone explain to me why that wouldn't work in theory?
all I can think of is transfer fees, or buy/sell fees for the bonds/stocks...

for the millionth time, paypal takes a fee for credit transactions
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