Warning regarding 'Credit card cash advance'

[sportsfan112]

I recently received this email from PayPal

[quote]We've noticed that you've recently completed a credit card cash advance which we don't allow with our service, as clarified under the 'Restricted Activities' found in Section 9 of our User Agreement.
 
Please note that if you participate in a restricted activity while using our service, we may temporarily or permanently suspend your account. We may also hold or delay a payment at our discretion, to ask you for information about any payments you've completed.
 
You can view the terms of using our services by clicking the 'Legal' link at the bottom of any PayPal webpage, and clicking on 'User Agreement for PayPal Service'.[/quote]

I'm fairly new to PayPal and I made a payment from my credit card to my brother's PayPal account.. Is that the rule that I broke? Are you supposed to deposit funds into PayPal first?

When you purchase items on ebay with PayPal aren't you just transferring money from your PayPal linked credit card into the ebayer's PayPal account? So what is the difference in that and what I have done with my brother?

Is it because my brother's PayPal account had just been created? He created it on the same day as I made the transaction, I didn't have my bank login details on hand at the time and thought PayPal would have been the easiest way to do it.

Or is it because my credit card is out of funds and the money was provided through an overdraft?

[kernowlass]

"Or is it because my credit card is out of funds and the money was provided through an overdraft?"

That is the most likely reason. You need cleared funds in your paypal balance / bank account or funds available in a card to use.

If your card is maxed out then you can't use it to credit another person.

[scrummygrustle]

I think you're saying you sent money to your brother from your card through PayPal? I believe PayPal considers send money transactions conducted using credit to be cash advances