Since withdrawing from an ATM does indeed incur interest charges, an alternative method involves transferring the money twice via PayPal.

Question

Since withdrawing from an ATM does indeed incur interest charges, an alternative method involves transferring the money twice via PayPal. Person A would send $100 to Person B through PayPal using their credit card. Pay- Pal will charge a fee for effecting the transfer, and Person B will end up getting only $90 as a result. Afterwards Person B will re-transfer the money to Person A, and Pay- Pal will again charge its fee. Person A will now be left with $80. Since the money is now out of his credit card and inside his PayPal balance, he can make another transfer to his debit card (PayPal fees apply yet again) and then use that to withdraw from an ATM and pay his creditor. Person A will have to pay $100 afterwards to the credit card company for the initial loan. In order to offset the fees charged by the credit card company, PayPal also charges more to transfer using a credit card. Because of this, the credit card company will ultimately receive more than the principal ($100) when you factor in the fee they charged PayPal. Also note that PayPal doesn‟t allow money to be withdrawn directly from a credit card into one‟s PayPal balance. One has to go through a multi-step, feeladen process like how I described above (Person A to Person B, and then the reverse) before they can transfer the money into their debit card. The creditor also doesn‟t have a PayPal account to replace the role of Person B in said process.