PayPal circular connected transactions

[TonyF]

Hi all,

I am new here and this is my first post.

We had dinner last evening with a couple who say they have collected loads of points by wiring money from an amex-linked paypal account to another (husband’s and wife’s) and refunding the bank account linked to the direct debit. They say they have been doing this for 4 years now and showed us screen shots.

How is this possible?
Thanks

[Aston100]

It really isn’t difficult at all to game Amex and PayPal.
However, the consensus here is that you’ll get into trouble with one or both of those organisations if you do it often or for silly amounts.

[John]

I used to do it with myself using 2 paypals. May not be possible any more as paypal may check the name on bank accounts.

As long as they have enough other genuine transactions it won’t trigger anything with paypal, until it does, then there is a risk of getting banned. Same with Amex

[memesweeper]

If Amex catch you paying yourself you will be banned for life. This includes paying a business you have an interest in. I would imagine paying a significant other via PayPal is going to fall foul of the same rules.

I’m surprised PayPal haven’t cottoned on to that couple and investigated, but unless and until they do I guess there’s nothing to stop them. PayPal are the real looser here, not Amex.

[QFFlyer]

Yep agree with the above, this is incredibly easy and equally risky to (mainly) your PayPal account and also your Amex account. Now and again, for reasonable amounts, is ok (and even permitted, seemingly – they have a pay friends and family feature), but using it to deliberately obtain cash advances (which is exactly what’s happening) is specifically prohibited by PayPal. I guess PayPal will decide/define reasonable, when/if the time comes.

[Lady London]

Don’t mess with Paypal would be my suggestion. If you land with their team in the Philippines it’s a living hell.

[Super Secret Stuff]

I get worried when I transfer someone £50 from my amex on pay pal by mistake. To me the hotel cashback offers and the points are way more valuable than a few extra points