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Sirius Glass

Sirius Glass

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This month PayPal has changed it policy to not only collect 3% from the seller, but to also charge your credit card Cash Advance! This adds to the cost of the purchase. I had recently using PayPal more, but I discovered that my last transaction had a cash advance charged added. I will now send fellow Photrio sells a personal check to be cashed before the sale item is shipped.
 
That may not be a result of a change to PayPal's policy, but rather a change to your credit card provider's policy.
 
Sirius Glass said:
No checked the notices from PayPal. This is all on PayPal increasing its profit.



VISA, but it is PayPal that changed the rules.
Click to expand...


Where's the notice from Paypal? I haven't received any lately.

As for the card, it's not so much Visa as the issuing bank that can set a policy like that. It's possible that your bank miscategorized a Paypal transaction as a cash advance instead of a purchase. Each vendor/transaction has a Merchant Category Code that determines what type of vendor or purchase it is. This is how HSA cards determine whether you're buying a prescription or beer.
 
If you see the charge categorized as a cash advance in your PayPal account, it is the result of PayPal's actions.
If you see the charge categorized as a cash advance in your VISA account, it is a result of the VISA issuing bank's actions.
It may be a case that the VISA issuing bank(s) have required PayPal to categorize the transaction with a cash advance related MCC.
There is certainly no benefit to PayPal if the cash advance categorization doesn't lead to a higher PayPal service charge.
 
Oh the nerve! Imagine, a financial institution charging customers for services...oh, the horror! The HORROR!
 
Last edited:
BradS said:
Oh the nerve! Imagine, a financial institution charging customers for services...oh, the horror! The HORROR!
Click to expand...
I know. I can't believe they actually charge people for being able to accept credit card payments, or send $ somewhere.
==
Sirius Glass said:
No checked the notices from PayPal. This is all on PayPal increasing its profit. VISA, but it is PayPal that changed the rules.
Click to expand...


https://www.paypal.com/us/smarthelp/article/FAQ499
paypal has nothing to do with it.

I called my credit card and they told me its against their policy to do that, PayPal said the same thing to me on the phone.


why is this post under "advertisers" ?
 
Last edited:
I'm confused, just checked my paypal account for some purchases we just made this last week.. and there is no additional charge, shown for any of those purchases, on the payment info for each vender, and its specific purchase.
Were are you finding this on your paypal account?
In some other location?
If so please give the location.
Thank you ... p;
 
I checked both my paypal account and credit card statements... I pay the regular PayPal fee and exactly that shows up on my credit card as a charge... with no additional bank fee.
 
This same warning was appearing a couple of weeks ago whenever I was trying to use Paypal for a purchase using my credit card. However, when I checked back no additional fee was applied to my card. It appeared to be an attempt by Paypal to encourage people to attach their actual bank account information in lieu of using your credit card. I refrained from doing that but the warnings have quit popping up. It may have been some form of phishing attempt by some outside 3rd party but that is only speculation on my part.

EDIT - By the way, I have no problem paying Paypal a standard fee for their services. I even avoid doing business with sellers who want me to transfer money through the family/friend process in order to avoid fees. But this action did seem a bit over the top, even for Paypal.
 
cramej said:
Where's the notice from Paypal? I haven't received any lately.

As for the card, it's not so much Visa as the issuing bank that can set a policy like that. It's possible that your bank miscategorized a Paypal transaction as a cash advance instead of a purchase. Each vendor/transaction has a Merchant Category Code that determines what type of vendor or purchase it is. This is how HSA cards determine whether you're buying a prescription or beer.
Click to expand...

Can you read??? PayPal changed how they charge the card. I received a letter before and it was in the fine print. I asked and the issuing bank questioned the practice change that PayPal made.
 
MattKing said:
If you see the charge categorized as a cash advance in your PayPal account, it is the result of PayPal's actions.
If you see the charge categorized as a cash advance in your VISA account, it is a result of the VISA issuing bank's actions.
It may be a case that the VISA issuing bank(s) have required PayPal to categorize the transaction with a cash advance related MCC.
There is certainly no benefit to PayPal if the cash advance categorization doesn't lead to a higher PayPal service charge.
Click to expand...

The first one. As you stated.
 
peter k. said:
I'm confused, just checked my paypal account for some purchases we just made this last week.. and there is no additional charge, shown for any of those purchases, on the payment info for each vender, and its specific purchase.
Were are you finding this on your paypal account?
In some other location?
If so please give the location.
Thank you ... p;
Click to expand...

It was an on line purchase. The seller told me that nothing was done differently on their side.
 
BradS said:
Oh the nerve! Imagine, a financial institution charging customers for services...oh, the horror! The HORROR!
Click to expand...

Not again on my watch.
 
BrianShaw said:
I checked both my paypal account and credit card statements... I pay the regular PayPal fee and exactly that shows up on my credit card as a charge... with no additional bank fee.
Click to expand...

Mine took effect 10 September. A $10 charge for a $100 purchase. Watch you bill.
 
Pioneer said:
This same warning was appearing a couple of weeks ago whenever I was trying to use Paypal for a purchase using my credit card. However, when I checked back no additional fee was applied to my card. It appeared to be an attempt by Paypal to encourage people to attach their actual bank account information in lieu of using your credit card. I refrained from doing that but the warnings have quit popping up. It may have been some form of phishing attempt by some outside 3rd party but that is only speculation on my part.

EDIT - By the way, I have no problem paying Paypal a standard fee for their services. I even avoid doing business with sellers who want me to transfer money through the family/friend process in order to avoid fees. But this action did seem a bit over the top, even for Paypal.
Click to expand...

This was over and above the PayPal standard fee. It was an on line purchase paid using PayPal. Therefore I will stop using PayPal and if that means later I stop buying on eBay [which this was not] so be it.
 
@Sirius Glass I would suggest talking to their support. Very likely it's some kind of a mistake/glitch, may even be a software bug on their side. Credit card industry does not allow individual players a lot of leeway for processing transactions. I seriously doubt that PayPal can be charging a cash advance fee for no cash changing hands at scale. Visa/Mastercard/Amex would want to have a word with them.

Also, if the support doesn't help, go ahead and dispute the charge with your card issuer. Chargebacks are costly for Paypal even if they fail.
 
Some of these digital 'properties' are taking us for granted, I think.
 
This past week I purchased a piece of camera gear using my PayPal account backed by my Visa card, and I don't see any additional charges from PayPal or Visa.
 
Bormental said:
@Sirius Glass I would suggest talking to their support. Very likely it's some kind of a mistake/glitch, may even be a software bug on their side. Credit card industry does not allow individual players a lot of leeway for processing transactions. I seriously doubt that PayPal can be charging a cash advance fee for no cash changing hands at scale. Visa/Mastercard/Amex would want to have a word with them.

Also, if the support doesn't help, go ahead and dispute the charge with your card issuer. Chargebacks are costly for Paypal even if they fail.
Click to expand...

Great idea. Will do. I will call PayPal next week.
 
jnantz said:
their customer service is open 24/7, if it is a distressing transaction fee I would call them sooner rather than later.
Click to expand...

Good point. Thank you.
 
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