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Original poster

New message about credit cards on paypal

29 replies

KatyMac · 07/04/2023 11:00

Just gone to pay for something on marketplace and paypal came up with a message saying my credit card provider might charge a money withdrawal fee

Is this new? I use a tesco cc if it's different

I know I can ring them but it's good Friday and I reckon they will be understaffed!

OP posts:
MissLC · 07/04/2023 11:24

Hmm.... watching with interest. I paid for something with my credit card via PayPal this week and didn't get a message. My card is with Lloyd's.

Original poster
KatyMac · 07/04/2023 12:54

Scary!

OP posts:
Original poster
KatyMac · 07/04/2023 16:01

Has anyone else seen the message

OP posts:
SnaccidentsHappen · 07/04/2023 16:38

If its classed as a transfer or 'withdrawal' then the associated fee that are in your credit card T&C's may apply.

I work in banking and have also seen companies process payments as a cash withdrawal which then means the customer gets charged a fee, that's all to do with how the company processes it though - this could be a similar scenario.

Original poster
KatyMac · 07/04/2023 16:41

There is nothing I can see on tesco credit card site and I've read through the recent changes

It's annoying that I haven't been able to find out - I'll ring on Tuesday I guess

OP posts:
Baileysoverice · 07/04/2023 16:53

Ooh stalking for an answer. I had this yesterday when I paid for my Avon order via the PayPal app. Pay as family and friends and only have my credit card on my account. Never seen this message before but did yesterday. I have paid this way to family and friends many many times and I will be annoyed if I get charged. I'm with Tesco for my credit card too... though won't be much longer if I do get charged. The benefits of a tesco credit card has diminished drastically lately. Only stayed with them cos I'm loyal (ahem.... lazy!!).

BurntOutGirl · 07/04/2023 17:13

I have a Tesco CC... paid a friend via paypal and was charged.

I phoned them up and they said it's a recent change and they class it as a cash withdrawal.

But not if you're paying a business with it.

This was literally yesterday!

Original poster
KatyMac · 07/04/2023 17:14

Thanks @BurntOutGirl I couldn't see it in their changes

Can anyone recommend a credit card that doesn't 🙄

OP posts:
BurntOutGirl · 07/04/2023 17:47

I can't see it either

Baileysoverice · 07/04/2023 18:03

@BurntOutGirl could you see the charge straight away or was it just when you received your bill please? Not impressed at all. Means I need to add another card to my PayPal.... I used my credit card as protection after my Mum's PayPal got hacked and they tried to empty her bank account with fake payments against her debit card 🙄

Original poster
KatyMac · 07/04/2023 18:25

I guess it's only friends/family and that goods and services are still ok

I can see me getting a different card pdq

OP posts:
BurntOutGirl · 07/04/2023 18:25

It took 2 days. I phoned them up to query it and they refunded it.

BurntOutGirl · 07/04/2023 18:28

KatyMac · 07/04/2023 18:25

I guess it's only friends/family and that goods and services are still ok

I can see me getting a different card pdq

That's what Tesco said to me. Hoping they are correct as l use PP for anything under £100 for extra security

BarbaraofSeville · 08/04/2023 10:27

KatyMac · 07/04/2023 18:25

I guess it's only friends/family and that goods and services are still ok

I can see me getting a different card pdq

I think that's it.

If you use PayPal to buy goods from a business (although it's probably better to just directly use your credit card) then you won't get charged.

But if you use it to send money using the friends and family method, they could be treating it as cash and charging accordingly.

Maybe it's to stop people misusing PayPal to get cash off their credit cards without paying the fee?

Eg if I used my credit card to send money to DP via PayPal he could then withdraw it to our joint account and we've got a credit card cash advance that up to now could have been treated like a purchase with lower interest and no fee.

Baileysoverice · 08/04/2023 10:33

Yup so it happened..... £32.75 payment to my Avon rep has had a charge added of £1.31.... not a massive amount in the great scheme of things but I'm not impressed.

Original poster
KatyMac · 08/04/2023 15:44

It's annoying as I buy loads of 2nd hand stuff from fb marketplace and I use f/f as most people aren't making a living at it just selling their stuff

So now I either stop or use cash or pay the PayPal fees for them - I like using PayPal as its an electronic record and it make my self assessment easier

OP posts:
Brahumbug · 08/04/2023 19:41

Instead of a credit card, use PayPal credit, that way you get the section 75 protection as well and works just like a credit card.

Original poster
KatyMac · 08/04/2023 22:59

@Brahumbug will that work for friends and family?

OP posts:
bamboonights · 08/04/2023 23:03

Please make sure that you get the telephone number from the official website-do NOT Google it. I was scammed badly by doing this.

SnaccidentsHappen · 08/04/2023 23:14

You will not be protected by either PayPal or credit card when paying friends and family.

With PayPal and a credit card dispute it's classed as a money transfer and as long as the money for to the intended account there is nothing to dispute. So be careful if buying things online and you are asked to pay this way, only use it for people you know.

PayPal transactions on credit cards are not eligible fire section75 claims on credit cards as there is a 3rd party involved (PayPal). To be eligible for section75 the transaction needs to be over £100 but less than £30,000, a direct link between debtor (you) creditor (credit card) & supplier (company you are buying from) & lastly there must be a breach of contract or misrepresentation.

Unfortunately there are no guarantees with when raising either a dispute/chargeback or section75 claim.

AppleDumplingWithCustard · 08/04/2023 23:18

I saw this yesterday. I was giving a cash donation to a charity which I’ve done several times before and the message popped up for the first time. I assumed it was because the cc company treats it as a cash withdrawal as no item is actually being purchased. I added my debit card to PayPal and paid via that instead.

Original poster
KatyMac · 09/04/2023 01:13

I normally buy things under £10, almost always under £20

I'm not too worried about protection as I have the item but I do t want to pay fees

So back to cash which is inconvenient

OP posts:
Brahumbug · 09/04/2023 07:34

@KatyMac

@Brahumbug will that work for friends and family?

I must confess I don't know if it will work with friends and family.

Brahumbug · 09/04/2023 07:39

@SnaccidentsHappen

PayPal transactions on credit cards are not eligible fire section75 claims on credit cards as there is a 3rd party involved (PayPal). To be eligible for section75 the transaction needs to be over £100 but less than £30,000, a direct link between debtor (you) creditor (credit card) & supplier (company you are buying from) & lastly there must be a breach of contract or misrepresentation.

PayPal credit payments are eligible for section 75 as it is a credit transaction and the link is direct between you and the goods provider. It is not the same as using a credit card through PayPal. I have made a section 75 claim through PayPal credit and been successful. Of

BasoonerOrLater · 09/04/2023 07:45

Why not just use a debit card @KatyMac?