How to Use PayPal to Get Cash from Credit Card 2023 [5 Steps]

By Neil Harris 7 Min Read

You absolutely can use PayPal to get cash from credit card but this only works with UK PayPal from what I have seen. US PayPal won’t let you select your credit card for the transfer—you typically can just add the credit card or shop with it.

With your UK PayPal, you can move the funds in small amounts, so nobody will probably notice. If you do large amounts of cash cycling for cashback, you will eventually get caught and risk getting your account closed by your credit card company or just a warning to stop.

On PayPal’s end, it seems they are losing money. Since they have to give the credit card company their cut (interchange) but pass on 100% to the receiver. Perhaps, the credit card company won’t care but PayPal may. The card company should get their cut if they categorize it as a purchase.

Use PayPal to get cash from credit card in simple steps

You probably need cash urgently, but you don’t want to get slapped with those cash advance fees by credit card companies. With the trick in this section, you should be able to use PayPal to get cash from credit card.

  • Log in to your PayPal account.
  • Have your trusted friend or family member who is willing to help you out receive funds from you.
  • Use your credit card to fulfill the transaction and send the specific funds to your friend or family member’s PayPal account.
  • Once the funds have been transferred to your friend or family member’s PayPal account, they can then withdraw the money and transfer it to your current account.

It doesn’t even look like a cash transaction on your credit card statement, which means you may not be charged any cash advance fees. Instead, it’ll just look like any other purchase you’ve made on your credit card. So, that’s how you Use PayPal to get cash from credit card.

Ps. Only works for UK PayPal for now. If you reside in the US, give it a try to see if it works too.

Just a few considerations

  • You’ll need to make sure that your friend or family member is okay with being part of this transaction.
  • Be careful not to overuse this trick, as it could potentially raise red flags with your credit card issuer.
  • Only send a small amount of money from your credit card  If it’s just a small amount of cash, nobody will probably notice or care.
  • Let’s say you’re using it for large amounts of cashback. Your credit card company might catch on and either close your account or warn you to stop.

PayPal may be the party losing money in this scenario, which could lead to issues with the credit card company.

Also, using credit to cover overdrafts can lead to a cycle of debt if not managed responsibly.

Suppose that the credit card company sees it as a purchase, they will likely get their cut regardless. Just don’t try to cycle large amounts of cash or it will likely get flagged.

Furthermore, when you use PayPal to get cash from credit card, it could potentially get you flagged and you may end up on a fraud database like CIFAS.

You will also be paying fees for using your credit card for the transaction. Let’s assume you accidentally move money from personal to business accounts; you could eventually get banned.

Read also: how I moved PayPal Credit as cash to another PayPal

Fees involved with using PayPal to get cash from credit card

In the UK, the rate relating to personal transactions is free. For international transfers, the rate is 5% of the transaction amount. The minimum fee is GBP 0.99 and the maximum fee is GBP 2.99.

For the US PayPal, sending with cards fee is 2.90% + fixed fee. For international transfers, it’s 5.00% of the transaction amount. You’ll be charged a minimum international fee of 0.99 USD and a maximum international fee of 4.99 USD.

Overall, weigh the costs and benefits before using a credit card to send money through PayPal. Understand that you could gather a load of debt in the process.

Unless you have a credit card that earns significant rewards on PayPal transactions or needs to complete a spending requirement for a welcome bonus, the fees may end up costing you more than any rewards you earn. And with banks starting to charge cash advance fees for person-to-person payments, it’s worth checking the fine print to make sure you’re not getting hit with any unexpected charges.

Read also: PayPal Credit funds to yourself possible?

Conclusion—Use PayPal to get cash from credit card

One of the major benefits of using PayPal to get cash from a credit card is that it will not be considered as a cash advance, which usually carries higher fees and interest rates. However, note that using credit to cover overdrafts can lead to a cycle of debt if not managed responsibly.

It’s always best to explore all available options and seek financial advice before making such a decision. While it may work for some, it’s not a recommended solution for everyone.

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Seasoned, hands-on exec with a broad range of experience at both start-ups and large international corporations. Highly successful, results and customer oriented professional and with over 18 years experience in the software and payment innovations arena, with a proven track record in driving revenue growth and delivering results in operational performance and profitability through direct and indirect channels. Key focus is on customer success and delivering value and efficiency gains through tech. I live & breathe innovation in the payments arena - Visa & Mastercard card processing, UK Bacs, Faster Payments, Direct Debits, card acquiring & global payments are my junk food
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