Credit card pymt using Paypal -- interest charge/problems?

[jien]

Hi, just wanna check whether anyone had issues with credit card payments through paypal. I used a citibank credit card for my first SN purchase and was slapped with a 13% interest -- it's not a lot of money as my purchase was small. Citibank claimed that paypal had posted the charge as a cash transaction as opposed to a credit transaction, hence it's classified as a withdrawal of sorts -- and you have to pay interest for such transactions. Citibank waived the interest payment as it so happened that I had a credit balance in my card at that time (due to a refund - unrelated to this matter).

Then, for my 2nd SN purchase, I tried to use another credit card but was not allowed to do so (think the error message was that the card was in error, wth?) and I had to use the same Citibank credit card. I don't think I was charged interest for the 2nd purchase but I don't know yet cos haven't receive my latest statement (but I would think the Citibank agent would tell me just now) and I don't see it on my transaction summary.

Citi's explanation of paypal being the culprit worries me. They even claimed that they had seen similar cases with paypal transactions. I have every intention on putting in a big order later. Don't want another 13% interest charge!

Anyone had similar issues?

p.s I'm actually more angry with citi right now... I don't quite buy their story

[mgmsrk]

I use a Citi card for my paypal but honestly have not checked ( I know I should watch it but….) My payments come automatically from my bank and I don’t use the card for anything else so I just assumed if the balance did not make a big jump it was OK.

I would complain to paypal if they did what Citi said it’s their fault.

[jien]

update: Citi called me yesterday and now claimed that the interest debit was a system error, they couldn't provide further explanation. They emphasized that merchants are able to post transactions as cash advances, hence incurring interest for the card holder, but it wasn't the case for me... so citi blames it on technology.