PayPal to Indian [ICICI] Credit card

Hi,
i took time out to talk to a cust care executive here, and i would like to share the info with all.

1. IF someone ( ~ PayPal) pays me into my credit card, the amount will be reflected into my credit limit and NOT my cash limit; it will show up as excess credit;

2. If i withdraw cash [Normally] from the ATM it would be treated as a cash [loan] withdrawal, and is subject to service charge [INR 300 or 2.5% which ever is more] , Service Tax on it + 1.4% ~ 3.4% interest from the date you have withdrawn to the date it is payed back. there is NO credit free period here.

3. BUT If I transfer from paypal and THEN withdraw from ATM, it is still treated as a cash [loan] withdrawal, and is subject to service charge [INR 300 or 2.5% which ever is more] , Service Tax on it + 1.4% ~ 3.4% interest for 1 day. coz when the system updates itself at night (or whenever) then it will deduct cash withdrawal from excess credit, ... so 1 days interest will be levied.

The amount of ATM withdraw doesn't matter, INR 250 Or INR 10,000/, charges will come to Rs. 300 + Rs. 31 service tax + 3.4% for 1 day;

4. If your credit limit is 75,000/ and you transfer from paypal another lets say 40,000/ even though your statement would reflect 1,15,000/ you can ONLY withdraw 75,000/, when the next system update happens, then you credit limit would reflect as 40,000/=

5. Recommended form being withdraw from PayPal to card, and spend as retail spending, where there are no charges;

[you have may other charges as per your contract;
in my case my bank gave me this card as free, so i pay nothing for purchases]

thought i might share this

Regards,
M.

 

Thanks for the share.....mate!

One Question though...
If I swipe this Paypal funds loaded credit card at my friend's shop and took cash from him, will the debit get adjusted against the cash loaded up or will I be required to pay it as usual... before the 'free credit period' ends?

I am also given a CC by my bank free of cost and so this transaction if successful, would be expense neutral for me as well!

Regards,

RightMan

 

Can you explain this please.

So say I don't have bills due on my card with limit of 75K, now I withdraw 40K to my CC and once it is deposited on my CC then I withdraw it from my ATM so that will be with service charge of Rs 300 additional correct ? and rest all the stuff is the same ? No other fees on the card right ?

 

@Rightman: not sure on this one, are you referring to it as a "Sale",
yes the "purchase" will get adjusted to your "excess credit";

but the merchant will have to pay income tax on it, and you VAT,
though ( ...i guess... ) it would still be cheaper than 300 + 31 + 3.4%; youll have to find out the numbers;

@Red_virus: yes that would be
1. (2.5% or 300 which ever is greater) as service charge +
2. service tax on the above; +
3. interest on loan: 3.4% of amount withdrawn for 1 day;

M.

 

So correct me now, with this calculation.

I withdraw 20K that I transfer on my card from PayPal. So it will be Rs 300.00 + 3.5% on 20K which is 700Rs

So total of 1000Rs gone in fees ? correct me If I am wrong.

Thanks again.

 

Alright so this may answer your question indirectly bro, one time I paid twice the amount due on my credit card, it was taken as increased credit limit. So my credit card limit was 40 k - 8k due + 16 k i paid extra = 48 k limit.

So next month i spend 10 k and i only 2k was due in next month.

So if you swipe your card at your friends shop, and takes cash from him i dont think you will need to pay anything to cc company.

 

Your calculations are right bro, best thing to do, never withdraw cash from credit card. Hefty charges apply

 

no, thats 3.4% interest of the whole month;
but in case if your being charged for 1 day (card preloaded by PayPal) that would be 700/ 30;

so thats Rs.300 + Rs.31 + Rs.(700/30)

hope im clear

M.

 

You are making an arrangement behind the scene. It would be treated as a normal purchase. However most of the credit card companies dont allow such practice. You cant spend on your card with an intention of cash advance.

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BTW that 3.45% interest may vary based on your credit card and this rate is for per month calculated on a daily basis. If you have outstanding amount in your card I guess some Banks may club it altogether if you do a cash withdrawal.
Overall this method would be very expensive considering the hidden rates/fees charged by the Credit Card companies.

 

I will be applying for a SBI CC in a week or two. My questions are:

1. If I use CC for online purchases (like domain registration, web hosting fees etc.), how much would be the fees?
Suppose, in 1 full month, I only purchased a domain name worth $9 (Rs.400).
How much amount will I have to pay in monthly billing cycle?

2. I will be withdrawing the paypal funds to my bank account and will be paying the CC bills using my bank account balance. So does CC come into play in all this business?

 

@rdthewall - i rather u open a savings account with a private bank like ICICI/ HDFC,
and start withdrawing paypal funds to that account, ...
as soon as they see money coming into your savings account, they will give u a free CC,... that you can enjoy,

applying for a credit card from SBI, you will be charged annual fee, perhaps activation fee, and all other hidden charges which come with a CC... which becomes an expensive affair.

ICICI upgraded me to a gold card last year, and to a titanium card today morning, and all for free!

once you have a CC, you just get an additional mode of payment, for sites who do not have paypal option, u can pay with CC,... i prefer to pay via paypal any day, CC is only a backup.

M.

 

Few things i also want to share when I had words with Citi Bank Credit Card CC.

When i said if i withdraw money in advance and then i take cash out from ATM.will that work?

They said, first of all you can only withdraw amount upto your due on credit card. In case you withdraw more.bank may block your account and ask for details.

Then I asked if I take cash out and then credit funds in my card from PP they said thats not a problem, I just need to pay all charges of Loan Fee and All ( As mentioned by OP )

So just dont transfer funds in advance to your CC.

Hope it will help for people who want to make CC withdraw requests.

 

Thanks for the info.
I am a student and hence I am applying for CC through Fixed Deposit facility. SBI people told me that even if I don't use the CC for 1 complete year, only Rs. 250/- (fixed charges per year) will be charged.
For any purchase, 3% fees will be charged.

Can you please tell me what other (hidden) charges do these banks apply?

 

im not a SBI customer so i dont know what they're giving you, but i have heard people talk about charges to their credit card, the tiny charges amount to a lot!

read the contract carefully, thats all i'd say

M.

 

@msolution. Thanks for sharing this info. Of course, if everything doesn't work and since Cheque is a time taking process .. this can be a great solution.

 

I am so confused after reading this...