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So I recently made a purchase on Ebay using a Credit Card linked to my Paypal account. The amount was $15.00 but I was charged a $25.00 "Cash Advance Fee" by my credit card company that was billed a few days later. After being on the phone with my credit card company and also with Paypal I was informed that there is no way to tell when making a purchase if you will be charged a "Cash Advance Fee". Paypal cannot see ahead of time what kind of Merchant Code the transaction is being processed as, (and this determines the type of transaction in this case.. a cash advance) only the bank can see it when they receive it. In this case the Ebay seller chose wire transfer as the payment method from Paypal. This is what I was told but I have only been charged this fee using a Bank Of America Credit Card. Anyone else here have this happen? I will change my funding to a different card but its a little troubling to find a charge for "cash advance" from a standard Ebay/Paypal transaction.
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Alan
Why not link PayPal to your Bank current account?
Maurice -
Hi Maurice- it is but by using my credit card like I have done in the past, disputes- if they ever should arise - are much easier to handle.Comment
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Alan
I've never heard of this but it sounds a bit rich if a $15 dollar purchase has cost you $25. I thought credit cards gave some protection against things like this? but it seems from your research not in this instance.Comment
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It appears to be a credit card issue, not Paypal.
https://www.paypal.com/us/smarthelp/...payment-faq499Do I get charged a cash advance fee when I use my credit or debit card to make a payment?
No. When you use your credit or debit card, you will not be charged a cash advance fee for sending money for goods or services. Payments made as a gift or to friends and family are charged a fee that the sender can either pay themselves or opt to have the receiver pay.
For these types of transactions, PayPal charges your credit or debit card only for the transaction amount.
Note: If you make a cash advance purchase with a credit or debit card, the card issuer may charge a cash advance fee. PayPal has no control over third-party fees. To avoid incurring fees when making a cash advance purchase, you may want to use a different payment method, such as your bank account or an e-Check.
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If it were only that easy. I was on the phone with Paypal AND my credit card company for over an hour. Each side is blaming the other but then finally the Paypal representative said the merchant (not Ebay, but the Ebay seller) ultimately decides how a transaction gets processed. She said that on her screen the transaction looks like any other but on the sellers side they can decide if they want the funds to go into their paypal account as a credit or if they want the funds received immediately as a wire transfer. If they choose that then the transaction gets coded as a person to person transfer. Not all credit cards/banks charge the fee but Bank of America is one of them. Hopefully others will not follow suit. Here is an interesting article about it: https://www.nytimes.com/2020/04/24/y...-payments.html
And this could also apply to Venmo payments as well according to the article.Comment
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