Maximizing Cash-Back Rewards Via Paypal

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6 posts
LadyinRed
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Location: Los Angeles, CA

Maximizing Cash-Back Rewards Via Paypal

Postby LadyinRed » Mon Apr 14, 2014 11:23 am

It's been a while since I posted in here because you guys set me up pretty well with all my cards :) .

Anyway, I have to make a payment of around $2,000 through Paypal and was wondering if you guys knew of the best way to get the most cash back from it. I have:

Amex Blue Cash Preferred
US Bank Cash+
Chase Freedom
Capital One Venture

I can pay with the Venture through Paypal and get the equivalent of 2% back but I didn't know if there were any other tricks I should know.
AMEX: Blue Cash Preferred (6% on groceries, 3% gas & dept stores)
Capital One: Venture (2 points per $1, equivalent to 2%)
Chase: Freedom (rotating 5% categories), Disney Rewards (1 point per $1, Disney benefits)
US Bank: Cash+ (5% bookstores / 5% Electronic Stores)


linuxmachine
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Location: los angeles

Postby linuxmachine » Mon Apr 14, 2014 11:48 am

LadyinRed wrote:It's been a while since I posted in here because you guys set me up pretty well with all my cards :) .

Anyway, I have to make a payment of around $2,000 through Paypal and was wondering if you guys knew of the best way to get the most cash back from it. I have:

Amex Blue Cash Preferred
US Bank Cash+
Chase Freedom
Capital One Venture

I can pay with the Venture through Paypal and get the equivalent of 2% back but I didn't know if there were any other tricks I should know.


Your best bet is the Venture. Paypal doesn't hit any of the categories for the other cards, and there's no boost for paypal through chase shops either. None that I know of at least.

mrow
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Location: Wilmington, DE

Postby mrow » Mon Apr 14, 2014 8:39 pm

I'm assuming this is a purchase and not you sending someone money. Otherwise the fee PayPal will take to send money via credit card will make it not worth it. as it's higher than what the points or cash back would be worth.

linuxmachine
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Joined: Thu Feb 27, 2014 11:10 pm
Location: los angeles

Postby linuxmachine » Mon Apr 14, 2014 9:31 pm

mrow wrote:I'm assuming this is a purchase and not you sending someone money. Otherwise the fee PayPal will take to send money via credit card will make it not worth it. as it's higher than what the points or cash back would be worth.


Last I checked, it was categorized as a professional service, and not a cash advance. You can always test it out before you decide to do the transfer though. I know Citi is known to view this as an advance and not a purchase.

mrow
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Joined: Sun Apr 06, 2014 9:13 pm
Location: Wilmington, DE

Postby mrow » Mon Apr 14, 2014 9:52 pm

linuxmachine wrote:Last I checked, it was categorized as a professional service, and not a cash advance. You can always test it out before you decide to do the transfer though. I know Citi is known to view this as an advance and not a purchase.


What I mean is if you go to send someone $2000 dollars and choose credit card as the payment source PayPal will either tack a percentage and fee on top of that or the person you send the money to will get less than $2000 dollars.

If you choose the goods and services option the person you send the money to will pay the fees so they don't get a full $2000 dollars. They'll only get $1941.70. If you choose the family and friends option to send money, you pay the fees and your card gets charged $2058.30.

My point was that unless you're paying with a card that is going to give you 4% or 5% cash back on the transaction, the PayPal fees would cost you more than any cash back you'd be getting.

The only way around this would be finding a store that will let you reload Green Dot cards with a credit card and then using those Green Dot cards to add that money to your PayPal account.

LadyinRed
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Joined: Mon Jul 23, 2012 8:14 pm
Location: Los Angeles, CA

Postby LadyinRed » Tue Apr 15, 2014 11:36 am

mrow wrote:I'm assuming this is a purchase and not you sending someone money. Otherwise the fee PayPal will take to send money via credit card will make it not worth it. as it's higher than what the points or cash back would be worth.


Correct. This is a purchase.
AMEX: Blue Cash Preferred (6% on groceries, 3% gas & dept stores)
Capital One: Venture (2 points per $1, equivalent to 2%)
Chase: Freedom (rotating 5% categories), Disney Rewards (1 point per $1, Disney benefits)
US Bank: Cash+ (5% bookstores / 5% Electronic Stores)



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