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Seeing no other option I chose to send money through Paypal and was totally shocked when my payment made through credit card is treated as a cash advance and my bank charged me a whopping $10 cash advance fee, this is to just send $25 to friend, on top of which $1 was already charged by PayPal. Please avoid Paypal for sending money.
Friends/family payments are FREE as long as you fund them from your bank account or funds already in your balance.
If you use a card you pay the cards fee.
But this was not a Card fee, it was treated as cash advance! What if you were not maintaining a balance and then had to send money immediately? I would never use PayPal again to send money.
Cash advance fees are charged by the card company, not PayPal. If you weren't paying for goods/services you would be completing a cash transaction. I would suggest speaking with your card company regarding any fees they have charged.
My question is why paying with cc is treated as a cash advance and not purchase? We are not taking out actual cash and why don't you put in bold fees which are normally $10 will be charged, then at least we will think of other options. This is the first time I used cash advance and had no intimation such a huge fee will be charged by my card. Had I known, I won't have used this service. And I did my research and most credit cards charge $10 minimum so at least you should put a clear comment there saying that. We would rather use other services to send money in cases like this.
PayPal wouldn't post your card company fees as this isn't something that PayPal would know. Sending payment as a gift or as friends/family isn't a commercial (goods/services) payment as such it is treated as a cash advance. You may want to speak with your credit card company regarding the difference.