50 responses

  1. Financial Success For Young Adults
    September 24, 2011

    This looks like a great way to avoid Paypal fees when sending money. I know that Chase also lets you send money through email if both parties have Chase accounts but it typically takes about 3 days for the exchange. Thanks for the heads up!

    • moneycone
      September 26, 2011

      No problem! Glad you find it useful!

  2. Andy Hough
    September 24, 2011

    This might be worth a try since I could make a little extra cashback. I have Discover and remember them advertising this service but I figured it would be the same terms as PayPal. The monthly limit will keep this from being too useful to me but I can at least use it up to the limit.

    • moneycone
      September 26, 2011

      Good way to earn a little back on your PayPal payments!

  3. DIY Investor
    September 25, 2011

    Great info! I use Discover as well.

  4. BeatingTheIndex
    September 25, 2011

    Any tricks for us Canadians MC?:)

    • Moneycone
      September 25, 2011

      You get free healthcare – that triumphs everything else Mich! :)

  5. Well Heeled Blog
    September 25, 2011

    Hey thanks for the tip! I don’t have a Discover card… but will check out the one you featured.

  6. Barb Friedberg
    September 25, 2011

    I was surprised that on my last visit to paypal they wanted my bank information before I could make a payment to someone. But… only have a couple of credit cards, none are discover.

    • moneycone
      September 26, 2011

      I believe you could back paypal with a credit card instead of a bank account.

  7. The Dividend Ninja
    September 25, 2011

    This is a great article MoneyCone! Too bad it is not available for Canadians :( but like you said to Mich, our healthcare (and my pension plan) makes up for it LOL.

    Want to do some research on ZoomPass and see what you uncover?

    Cheers
    The Dividend Ninja

    • moneycone
      September 26, 2011

      Thanks Ninja! I will look into ZoomPass.

  8. Untemplater
    September 25, 2011

    I’ve never had a Discover card before so reading through at all of those benefits comes as quite a surprise. If I ever open an account I’d still want to keep a MC or Visa as my primary card since not all places accept Discover. That’s very cool they partnered with paypal like that though! -Sydney

    • moneycone
      September 26, 2011

      That is true! That’s the reason I have 3 cards in my wallet! I use Discover mostly for the 5% I get on revolving categories and for the travel perks.

  9. Ashley @ Money Talks
    September 25, 2011

    I don’t have discover either… maybe someday Amex will come up with something like this.

    • moneycone
      September 26, 2011

      I’ve heard a lot of good things about Amex, especially when it comes to extended warranties.

  10. World of Finance
    September 25, 2011

    Thanks for the tips MC! I was big into Discover before when they offered the 5% cashback on gas purchases EVERY month, until the last few years they changed it to revolving cashback categories. I wasn’t aware about some of the other added perks. Great post!

    • moneycone
      September 26, 2011

      I joined after Discover had done away with the 5% gas cashback!

  11. 20′s Finances
    September 26, 2011

    That is awesome! I already have a discover card, so I will be looking this up soon. Thanks for the heads up.

    • moneycone
      October 3, 2011

      No problem!

  12. Miss T @ Prairie EcoThrifter
    September 26, 2011

    Too bad we don’t have Chase or Discover here in Canada. I like Paypal though- I use it for a lot of things like online shopping and for managing my blog.

    • moneycone
      October 3, 2011

      Paypal is very convenient!

  13. Hunter @ Financially Consumed
    September 26, 2011

    Good information. I wish I had Discover card. I think they send me an offer each month…just might take advatage next time.

    • moneycone
      October 3, 2011

      Not a fan of too many credit cards, but so far don’t have any complaints with Discover.

  14. SB @ One Cent At A Time
    September 26, 2011

    Field of credit cards and payment tools is becoming fierce and competitive. I am noticing a trend where card, wireless and payment provider companies are tying up with each other. It’s a game of survival now, united we stand kind of approach.

    • moneycone
      October 3, 2011

      To see the future of mobile payments here, look at Japan!

  15. Roshawn @ Watson Inc
    September 26, 2011

    Thank you for sharing this. I always like learning how to save on fees. Paypal is a great service, but if we can get it for cheaper/free, then why not?

    • moneycone
      October 3, 2011

      Glad you find the post useful Roshawn!

  16. Buck Inspire
    September 26, 2011

    Great minds think alike MC, I’m a loyal Discover card holder. I use it to get entries into their Million Dollar giveaway. I also get gift cards from TJMAXX because they actually give you more bang for your buck rather than cashing out. Also, when you make a transfer via PayPal, what shows up as the payer? Your Discover card account name? Regardless, great job!

    • Moneycone
      September 27, 2011

      Your question had me digging through the process again! Yes the recipient gets an email from your name/email id registered with your Discover account. Your card details are not shown.

      Remember, you can use this even if you don’t have a PayPal account. Only the payee needs to have one.

  17. Jeffrey Trull
    September 27, 2011

    I do have a Discover card, so this will come in handy! Thanks for the tip!

    • moneycone
      October 3, 2011

      No problem Jeffrey!

  18. Ben @ BankAim
    September 27, 2011

    Didn’t know about the Discover/Paypal service.

    Also point 2 from above:

    “2.If the payment is for personal use, there may or may not be fees depending upon the source of funds”

    I believe the ‘for personal use’, there aren’t fees unless if you also send to other countries. I’ve sent a friend in the UK funds and was charged $0.30 fee, even though it was for personal use and directly out of the funds in our paypal account.

    • moneycone
      September 27, 2011

      Thanks for chiming in Ben.

      For non-domestic transfers, personal or otherwise, PayPal will charge a fee. I should’ve clarified.

  19. Maggie@SquarePennies
    September 27, 2011

    I love this! Sending money to family and friends couldn’t get easier! And you get cash back! Amazing. I hope they don’t decide to eliminat this feature if too many people use it.

    • moneycone
      October 3, 2011

      Discover did increase the cash back payouts from a minimum of $20 to $50 now! We’ll see how this goes…

  20. Financial Samurai
    September 28, 2011

    MC, how about for receiving money though? That’s the real killer for some of us, always paying the 3% fee.

    Thx!

    Sam

    • Moneycone
      September 28, 2011

      Sam, there is no fee if you choose transaction type as ‘Personal’. PayPal charges a fee only for business transactions.

      By default, the transaction type in PayPal’s payment screen is ‘business’ and most don’t bother to change the type and hence the fee.

      For non business money transfers neither the payer nor the payee should see any fees.

  21. Suba
    September 28, 2011

    Paypal allowed me only 6 personal payments last month. After that it started saying I have exceeded my limit and added a fee. Annoying. This might be a great workaround and earn some cash back. I have to get myself a discover card though. I am hearing more and more perks for having one. Thanks for the review. It will come in handy.

    • moneycone
      October 3, 2011

      Yes, this could be a nice workaround though the monthly limit is quite low.

  22. Christa
    September 28, 2011

    Very interesting — if I ever get to the point where I have to send money a lot, this may be the way to go!

    • moneycone
      October 3, 2011

      Definitely useful if you have Discover and use PayPal for sending money!

  23. Invest It Wisely
    October 3, 2011

    Interesting stuff! I know that I’m still paying 1% even for the personal PayPal transfer simply because I am in Canada. The injustice! :P

  24. Julie
    October 5, 2011

    Considering the fact that banks are going to start charging an ATM fee I love my PayPal account even more!

  25. UltimateSmartMoney
    October 6, 2011

    I have never done this even thought I have a paypal account. I will try it out because I have also Discover card. Thanks for sharing this info.

  26. UltimateSmartMoney
    November 3, 2011

    Thanks for this info. I did not know about this. I have to try it out too. So, basically I can send $200 to my paypal account from discover and get 1% cash back on $200? Pretty neat…

  27. TheDebtPrincess
    December 22, 2011

    Another way to avoid fees is to send the money as a gift. A PayPal associate suggested that to me.

  28. Neil Durkes
    November 21, 2012

    I use Money Messenger regularly and love it! However, my wife’s Discover account isn’t able to use the service. After several inquiries to Discover, nobody is able to successfully tell me why she isn’t able to use the service.

    Anybody have any ideas to why her account isn’t eligible?

  29. Sean
    December 16, 2013

    I use paypal a lot so I end up paying the fees every time. That’s a cool trick using the Discover card to pay. I’ll definitely check that out. Thanks!

    • Neil Durkes
      December 17, 2013

      Unfortunately Discover Money Messenger has been discontinued. Sorry. It was good while it lasted.

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