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By evenwind
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Posts:  1003
Joined:  Sun Jul 07, 2013 4:16 pm
#366317
I just got my statement from Citi. It had a $10 "Cash Advance" fee added. I haven't done any cash advances, so I checked it out. Apparently, Paypal, Venmo and the others were pressured to change their internal codes to the credit card companies to make peer-to-peer (ie. "Pay Friend") transactions into "Cash Advances". If your credit card issuer decides to charge a fee for cash advances, you're now on the hook for the fee. Not all credit card issuers are currently issuing a charge. But some are. If you want to keep using Paypal, I see 2 possible alternatives. Either change your linked card to one that isn't charging the fee. Or use the "business path" when paying friends. Of course, if you use the business path, you should find out the Paypal charge and add it up front to the transfer amount, so your friend doesn't get hit with it. (I'm not sure this will actually work or if the friend has to make their account into some sort of business account. Maybe someone knows for sure?)

http://www.doctorofcredit.com/some-majo ... quare-etc/
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