(Update 11/13/20: Here’s an official enrollment and instructions link.)
In the latest app update, American Express has added a feature which allows sending money via Paypal or Venmo from within the AmEx app with no additional fees. Typically, when using a credit card on Paypal/Venmo there is a 2.9% fee, but with this new Amex Send Account feature you’ll pay no fees.
Some notes:
- These transactions will not earn rewards. (Not clear if it’ll count toward spend requirements or if it’ll count as a purchase on the Everyday card to bump up your transaction numbers.)
- There is no cash advance fee for using this feature.
- I’m running under the assumption that the amount spent via Paypal will just combine with your regular Amex balance, and will not accumulate fees if you pay your bill when the statement closes, just like every credit card bill works. If anyone can verify this, please let us know.
- Currently, the feature is only available on AmEx consumer cards, not on business cards.
- It also does not work with Paypal business accounts.
- You need to update your app to get this feature. It’s available on the new iOS app and Android apps.
You need to enroll and link your Paypal and Venmo accounts before using this new option. (Go to a posted transaction and select the Split purchase option in the mobile app to find the enrollment option.) Once added from within the AmEx app, you’ll then be able to use the option either from within the AmEx app or from within your Paypal/Venmo account directly; it’ll show up as an additional payment option.
Interestingly, from what I’m reading it sounds like you can RECEIVE money directly to your AmEx card as well. The example given is that if you pay at a restaurant with your AmEx card, your friends can pay back their share, and you can apply that to your AmEx balance. So there’s finally a way to pay your credit card balance directly from Paypal. This could be helpful to people who do business in large volume using Paypal. (Not sure if the funds need to come from someone else to be able to apply it to your bill or if you can use your own Paypal funds to do this.)
Overall, I actually find the new option interesting for someone who wants to use Paypal/Venmo but doesn’t want to give their debit card number or bank info. This way, it’ll all just combine with your regular AmEx bill, and there’s additional security of the funds not being drawn out of your bank.
Hat tip to readers Donald, Cole and to r/amex
