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Paying for Palm Springs dinner at Trio with Paypal vs. Venmo


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After sending $$ for the Palm Springs dinner event, my credit card company charged a $10 fee for using PayPal as a cash transfer transaction.   Would Venmo be a more competitive choice next time?   Does Venmo have its own drawbacks?  

If I switch to using a bank card for sending cash via PayPal or Venmo, what might be some drawbacks with that?    I'm checking whether my bank has fees in this case.   I will probably need to ask.    Don't see a fee referenced for that.

Seems like Zelle would be a better choice, but that wasn't one of the options.

 

 

 

Edited by OCClient
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9 hours ago, rvwnsd said:

I'd link my bank account for cash transfers. 

This is the part I have trouble with. I picture somebody telling me “omg, all my money is gone! Like poof, gone!!”

“ This is terrible! Did you get robbed?”

 “No…”

 ”…did your phone get hacked?”

”…no…”

” OMG was there a breach in the bank’s security system?”

”Not that I know of.”

“Any missing checks?”

”Who uses checks?”

“But how would somebody get your account information?”

”Oh, I linked it to an app on my phone, super easy!”

image.gif.28fa03abd13e5dc50da95c063ae4dc93.gif

 

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9 hours ago, jeezifonly said:

This is the part I have trouble with. I picture somebody telling me “omg, all my money is gone! Like poof, gone!!”

“ This is terrible! Did you get robbed?”

 “No…”

 ”…did your phone get hacked?”

”…no…”

” OMG was there a breach in the bank’s security system?”

”Not that I know of.”

“Any missing checks?”

”Who uses checks?”

“But how would somebody get your account information?”

”Oh, I linked it to an app on my phone, super easy!”

image.gif.28fa03abd13e5dc50da95c063ae4dc93.gif

 

While I understand your concern, this is PayPal, not a random app on your phone. Given PayPal requires you to send the money, the probability of a recipient draining your bank account is rather low. While it is possible someone could hack into PayPal, steal users' credentials, and impersonate users by sending money to themselves, the same could (and has) occur with a bank. 

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On 4/16/2022 at 4:23 PM, OCClient said:

After sending $$ for the Palm Springs dinner event, my credit card company charged a $10 fee for using PayPal as a cash transfer transaction.   Would Venmo be a more competitive choice next time?   Does Venmo have its own drawbacks?  

If I switch to using a bank card for sending cash via PayPal or Venmo, what might be some drawbacks with that?    I'm checking whether my bank has fees in this case.   I will probably need to ask.    Don't see a fee referenced for that.

Seems like Zelle would be a better choice, but that wasn't one of the options.

It sounds like it was processed as a cash advance.  Be careful with those as sometimes credit card companies get spooked by those and will slash card limits because of those sorts of transactions.  (It happened with a Chase card that was used to buy tickets to a show that somehow processed it as a cash transaction instead of a credit transaction.  Within a month they cut the card's limit by 50% citing that as the reason.)

In general, if the purpose is sending "cash" via an app, Zelle is the best way.  Otherwise don't use the funding source as a credit card...  use a debit card instead or a direct bank transfer.  

In terms of being safe...  if you use a trusted app (PayPal, Venmo, CashApp, etc), it's generally very safe.  I can provide some links if it helps on it, but my day job is in cyber security for the financial services industry... I personally have each of the apps and have them linked with a bank account.  One of them is tied to a separate account than my normal daily transaction account, but that's not because of any special requirements to do so.  

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On 4/18/2022 at 9:30 PM, RadioRob said:

It sounds like it was processed as a cash advance.  Be careful with those as sometimes credit card companies get spooked by those and will slash card limits because of those sorts of transactions.  (It happened with a Chase card that was used to buy tickets to a show that somehow processed it as a cash transaction instead of a credit transaction.  Within a month they cut the card's limit by 50% citing that as the reason.)

In general, if the purpose is sending "cash" via an app, Zelle is the best way.  Otherwise don't use the funding source as a credit card...  use a debit card instead or a direct bank transfer.  

In terms of being safe...  if you use a trusted app (PayPal, Venmo, CashApp, etc), it's generally very safe.  I can provide some links if it helps on it, but my day job is in cyber security for the financial services industry... I personally have each of the apps and have them linked with a bank account.  One of them is tied to a separate account than my normal daily transaction account, but that's not because of any special requirements to do so.  

There is one little problem with Venmo - I am told it is difficult to get the money back if you accidentally pay the wrong person.  I always think about that when I'm paying someone. 

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4 minutes ago, Rudynate said:

There is one little problem with Venmo - I am told it is difficult to get the money back if you accidentally pay the wrong person.  I always think about that when I'm paying someone. 

I believe it is impossible to get the money back, which is why providers may prefer it, in that (unlike with PayPal) the funds aren't going to magically disappear the next day.  In order to prevent error, you may send a test dollar first, or have the provider send you a request rather than you initiating the transaction.

Kevin Slater

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9 minutes ago, Kevin Slater said:

I believe it is impossible to get the money back, which is why providers may prefer it, in that (unlike with PayPal) the funds aren't going to magically disappear the next day.  In order to prevent error, you may send a test dollar first, or have the provider send you a request rather than you initiating the transaction.

Kevin Slater

excellent idea.

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