What happens if I receive a message about "completing credit card cash advances"?

[ak123456789]

I recently sent a sum of $575 to pay a family member back money I owed them on September 8th in the afternoon. They initated a transfer of this sum to their bank shortly after. We both assumed they would be receiving the money in their account after the weekend. Today at 1 pm, we both receive messages that I "completed a credit card cash advance" through paypal which is not allowed. I'm not sure what this means, because I 100% had sufficient money on my card to pay this sum to them.

My question is what happens to my money? It's still been taken off my credit card but not put into my family member's account. Can they still get the money tomorrow even though this warning was sent? If it was returned to me, I would simply use another service like venmo to pay them, but since it's not been returned I can't do that. The messages had no further info about this matter.

Please help!!

[DPCreations]

My guess is that it will all be reversed.

What was you cash advance limit on your credit card?

How much fee was taken from the transfer?

Was the payment as friends/family?

Assuming your are both in the U. S.

[ak123456789]

By cash advance limit, do you mean how much I can spend on my credit card per month? That's $5000.

Fee taken was 3%, so $17.25.

Yes, it was paid friends and family and we are both in the US.

I'm just having trouble understanding why this happened and why paypal took a few days to notify me of this.

[DPCreations]

Doing some Google and PayPal searching comes up with your type of activity likely being a restricted activity.  Next step may be limiting your account.

Check PayPal policies 9.s for restricted acvities:  Using PayPal for a cash advance to yourself or helping others with a cash advance.  You took a cash advance from your credit card; normally your credit card would add it's own cash advance.  You sent the funds to somone else who immediatedly deposited funds into a bank account.  There might have been something suspcious-looking there.

You coud check your credit card activity to see what happened there.

You could also phone PayPal customer service for specific information.

Let your friend know that the money may be revered and your friend's PayPal account may be at risk.

[ak123456789]

Thanks so much for being helpful! I guess I'll just wait and see what happens in the next couple of days.

Since you seem to know a lot can you tell me: is the suspicious activity just the large amount of money coupled with the immediate withdrawal? Because I've used this credit card to pay people on Paypal too many times to count and have never had an issue before.

[DPCreations]

Actually, I don't know that much; I'm just guessing based on general information and searches.

You mean you've been sending people money from the linked credit card as family/friends before and never had a problem?

Does your credit card see it as cash advance with a fee?

Is there any link or relationship between your friend's bank and/or account and your bank account?

[ak123456789]

Yep, I've used this credit card numerous times for both ebay transactions and sending money through friends and family. I'm not really sure how my credit card sees it. And I don't think so, except for us having the same address due to living together?

[DPCreations]

Except the same address.  That's the most important information.

It's difficult responding to question when so much informatin is not provided in the original post; that's the reason for so much guessing.

You used your credit card to send money to someone else at your same address.  It looks like you are using the cash advance for yourself---clearly a restricted actvity.

If it's your same address why didn't you just get a cash advance from your credit card and give the cash to your friend.

If the reason was a restricted activity then both of your accounts are in jeopardy.

[ak123456789]

Ah got it! I didn't know that would be an issue, and it's so much quicker to do a paypal transaction than it is to go to the atm, give a person cash, and have them go deposit it at their bank. Thanks for the explanation!

[DPCreations]

I still suggest you phone PayPal customer service to find out the real answer as my reasoning may not be correct.

I also suggest being prudent about how you use cash advances with PayPal.  It would be much better to do a credit card cash advance directly INTO your checking account separate from PayPal,  Then, transfer the bank funds into your PayPal account.