A hypothetical: You apply for CC and in the app ask for a BT to CC#2. CC#2 has a zero balance on it before the BT. To make the question interesting, let's say you request a sizeable BT -- $11K for the sake of argument. So now CC#2 has a credit balance, you have overpaid $11K. What is the best way to get the credit balance off the card into your bank account? How long would it take? Also, let's say the CL on CC#2 is only $5K. Can you now put through a $9K charge (aka a $9K paypal to a friend), or will this get dinged? Will issuers do an electronic transfer of a big credit balance to get this immediately in your bank account? Any hidden risks in this I've missed?
I don't know the answer to all of your question, but I'll caution you about one thing. Paypal is great for handling small online transactions which carry minimal risk due to their miniimal overall value. BUT, I would be VERY cautious about ANY Paypal transaction involving large sums of money. Paypal is notorious for freezing accounts for a minimum of 30 days and not releasing the money to either the sender or the receiver during that time. They do so on even the slightest suspicion of something strange. That being said, I have personally paid for a $6000 purchase through Paypal and had no problem. I paid for a $1000 transaction and had my money frozen for a month. I didn't receive my goods from the seller because Paypal froze her account and Paypal wouldn't tell me anything or release my funds back to me until 30 days had elapsed. (There seems to be some magic in that 30-day mark for them.) I paid for a $3600 purchase through Paypal and received several boxes of garbage that weren't what I paid for. Paypal wasn't concerned about the contents of the boxes, their policies were satisfied by the fact that the seller had sent 5 boxes which I signed for. Fortunately, Citibank handled the chargeback so my money was refunded. In the future, I would never send a sum of money through Paypal that would put me in a hardship to do without for an extended period of time. I do have confidence now that my credit card issuer will stand with me, but Paypal is not reliable enough to count on if the transaction is a crucial one. My guess would be that if a cc has a credit balance you can just request they send you a check. I don't know if there would be any red flags associated with doing that for a large amount or not. I would assume people have made errors like that and accidently sent a BT check to the wrong CC account. Getting a refund check in that instance would seem the logical course of action.
