【Updated 2020.12】This amazing promo is ending soon (12.31). PayPal has not said whether it will be extended next year (the promo page is no longer viewable). If it is not renewed, the fee will be 1.9% + $0.1 per transaction, which honestly is not that expensive. There is also a very bug-like angle here that KUKU mentioned before.

  • A US PayPal account can scan the code from a Hong Kong PayPal account (or other non-US PP accounts). Once you get through risk control, you may be able to keep scanning repeatedly (paid with a US credit card).
  • Considering that USD and HKD are pegged, this is still pretty powerful.

There are some other use cases too, such as cashing out small amounts from various Visa gift cards and Mastercard gift cards. When linking them, remember to leave some balance available for PayPal verification. But a reminder:

  • If your USD PayPal account is not strong enough, using gift cards and then getting flagged by risk control can turn into a real headache. Also, watch out for being issued a 1099-K tax form.
  • PayPal is notorious. Do not mess around with it casually.

【Updated 2020.8】I believe many of you already received the email: the no-fee scan-to-pay promo has been extended through the end of this year! This promo really is very strong, but do not push it too hard. If you overdo it, PP may come after your account. If you do get flagged, usually you just need to submit the requested documents; see the DP in the comments section.

【Updated 2020.7】Due to COVID and to encourage convenient spending, PayPal launched a QR Code payment promo today: through September 30, 2020, merchants will pay no transaction fees at all on revenue received via customer scans; after that, the fee is 1.9% + $0.1 per transaction. If a merchant lets you pay by scanning their code, during the promo the merchant does not need to pay PayPal any card processing fee, with no cap.

Interestingly, personal accounts can also generate QR codes and participate in the promo.

And to help businesses impacted by COVID-19, we’ve temporarily lifted seller transaction fees on QR code transactions until September 30, 2020. After that, sellers pay just 1.90%+$0.10 per transaction.*

How to generate a QR code:

  • According to PayPal, you need to use the PayPal Business app to generate one (requires a PayPal business account).
  • You can also log in to your PayPal account on the web, then go here to download one (both personal and business accounts can generate one).
  • The personal account app can also generate person-to-person payment codes. Path: More——Get Paid with QR codes——Go to QR codes——Business Code OR Friends Codes

This promo is actually very strong: no fee and no cap. That said, PayPal’s risk-control department is even stronger, so do not play with fire too much. Overall, the author does not recommend pushing this too far.

In addition, PayPal in other countries or regions seems to have similar promos as well. If interested, you can search on your own.

HT: WeChat reader CK

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【Updated 2020.9】PayPal emailed some merchants: if you participate in QR-code payments, you can earn up to $100 or $500 back!

  • Email subject: Limited-time offer – get up to $100/$500 cash back (check your Spam folder)
  • By October 31, receive your first payment of at least $5, and PayPal will give you $50/$250 back
  • By October 31, receive five payments of at least $5, and PayPal will give you another $50/$250 back

That is $100 or $500 back in total. If your PayPal business account received this promo, this is basically free money. There may also be other offers, such as 10+30. HT: Edward

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About PayPal

PayPal is an essential financial tool for living in the US, and basically everyone has already signed up for PayPal. PayPal is mainly used for:

  • Online shopping: Nearly all US shopping websites support PayPal, such as eBay, Target, Best Buy, and more
  • Transfers to family and friends: This requires US personal PayPal accounts on both sides. Transfers post instantly to the recipient’s PayPal account. Using a non-credit-card funding source (account balance or bank account) has no fee
  • Receiving payments: As long as the payer supports paying with PayPal, such as when selling used items on eBay or running a small business, you can receive payment via PayPal
  • International transfers: PayPal supports transfers between different countries, and funds arrive instantly in the PayPal account, but fees can be high (note: transfers between your own accounts in different countries may be treated as business payments)

PayPal issues a 1099-K when annual business-payment volume reaches a certain threshold, so if you are not careful, do not mess around with PayPal. Normal online shopping and payments among family and friends are generally fine.

PayPal Deal

PayPal has a PayPal Deals system that occasionally has some good offers. Sometimes they can be stacked with other shopping portals, YMMV. If there is a good deal, we will try to update this post as soon as possible.

PayPal eGC deals

PayPal occasionally offers discounts on various third-party electronic gift cards (10%-20% off). Paired with a quarterly 5% credit card or certain specialty cards, you may be able to stack savings. This is especially useful for buying highly liquid gift cards. If there is a good deal, we will update this post or mention it in 101 Express.

Business account

In addition to personal accounts, PayPal accounts can also be converted to business accounts to access more features for business users. If you want a PayPal Business Debit, you must upgrade your account to a business account and provide your SSN.

【Warning】If your status is not suitable for engaging in business activity, we do not recommend upgrading to a business account.

Sign-up bonus

PayPal rarely has a sign-up bonus. Only occasionally can you get a bonus by registering through a friend’s referral link.

Credit cards that pair well with PayPal

Because PayPal is so widely accepted, it is nice to have a card that earns elevated rewards on PayPal purchases.

PayPal Mastercard

Discover it

  • Discover it credit card (quarterly 5%, starter card): You can apply with 0 credit history, and the welcome bonus is $50. Every year there is always 1 quarter with 5% cash back on PayPal, with up to $75 cash back per quarter. Just remember to link this card to your PayPal account before using it. This quarter happens to be the PayPal 5% quarter, through the end of September.
  • Note 1: If you have very high spending, you may want to consider applying for the Discover it miles card (a starter card that you can get with 0 credit history): It currently has a record-high $100 welcome bonus, and during the first year, Everything 1.5% x 2 = 3% cash back, with no cap.
  • Note 2: Discover Bank allows each person to hold two of its credit cards. After holding your first card for one full year, you can apply for a second one. If you have held the Discover it for more than one year, then apply for the Discover it miles, you can still receive the normal $100 welcome bonus, and the first year will also have double cash back, i.e. 3%.

Chase Freedom

  • Chase Freedom (quarterly 5%, Chase starter card): The current welcome bonus is $200 (20,000 UR). Like Discover it, it always has 1 quarter each year with 5% cash back on PayPal, with up to $75 cash back per quarter. This year it is Q4 (October-December 2019). See details here.

BofA Cash Rewards

  • BofA Cash Rewards is a no-annual-fee credit card. You can choose online shopping as the 3% cash back category, and most purchases paid through PayPal will code as 3%. The 3% online shopping category is capped; combined with the 2% cash back category, only the first $2,500 per quarter is eligible.

Some stories about PayPal

  • If you are paying for used items through PayPal on a forum or in a private transaction (not through eBay), try not to use family and friend; goods is better. Although there is a 3% fee, you can later use PayPal purchase protection if something goes wrong.
  • PayPal payments can be charge back, so if you are buying or selling something and the other party pays with a credit card through PayPal, be especially careful.
  • Although PayPal is a widely accepted payment method, it is also quite sensitive. If there are several identical charges in a row, your account may be temporarily suspended. This is especially common when buying gift cards multiple times on eBay.
  • When paying with PayPal, you may run into an endless verification loop. PayPal may keep asking for your phone number and verification code. If this happens, it will usually resolve itself after a few days. If not, you can call PayPal. But be prepared for India-based customer service, a very long wait, and support that may not be very helpful.
  • There is a limit on how many credit cards you can add to PayPal, and the same credit card cannot be added to two PayPal accounts. If one of your PayPal accounts gets shut down, the credit cards in that account may no longer be addable to other PayPal accounts.
  • Receiving a large amount of money through PayPal may trigger a review, and the funds could be held there for a long time.

Summary of small PayPal deals

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[2019.12 update] PayPal currently has a no-minimum $5 off promotion. You need to click the link to save the offer. Both personal and business accounts can register. It is limited to the first 70,000 users (cap on additions) and ends on the 20th. If you are interested, register soon. H/T: WeChat reader Xie

No-minimum $5 off registration link
Update: The Offer has already reached capacity. Congratulations to readers who added the offer. If you added it but have not used it yet, you should use it as soon as possible. Hesitate and you miss out.

If you are not sure what to buy, there may also be a no-minimum $15-20 off 1800-Flowers offer in the Shopping section of the web interface. Combined with Ebates and ShopRunner, it is even possible to come out ahead while getting a bouquet. See the article below.

PayPal | 800-Flowers no-minimum $15-20 off (how to get free flowers)
If you have already used the flower deal, you can also consider these uses:

Reload your iTunes balance (there is currently a 10% bonus, equivalent to an easy extra $5.5)
Buy a $5 e-gift card from merchants that accept PayPal, such as Target, Best Buy, Walmart, Starbucks, etc.
Reload through a third-party bill payment system that accepts PayPal, such as using Recharge to top up a mobile phone plan (minimum reload amount is $10). Or buy some small items on eBay.
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