Here it is: I send money to a family member via PayPal using my credit card, PayPal charges a fee but the cash back I get from the PayPal transaction exceeds the PayPal fee, my family member sends me the money back for free.
My concern is that my card might process sending money via PayPal to a friend differently from how it processes payments to a merchant via PayPal. For instance, it could count as a cash advance and that would likely incur other fees. Furthermore, I don't want to break any laws or agreements.
Edit: A customer service representative said that the card processes a PayPal payment to friends or family as it would a purchase.