You assume that Kiva pays nothing for paypal money transfer or the credit card.
It's plausible that Kiva pays that sum from the interest of the loans. It might also be that Kiva has indeed a deal with Paypal that allows them to receive money for free. If they have a deal somewhere in that deal it could be a clause that this doesn't count as a purchase.
You might trigger some fraud detection system if you try to do that with significant amounts of money. Maybe you even signed somewhere a clause that allows your bank, paypal or kiva to sue you for fraud.
I was assuming initially that there would be fees charged, but they would be low enough that it would still be worth it.
I had not thought of this being considered fraud. In hindsight, it seems obvious; since it is most likely not worth the trouble of looking through everything I have ever signed, I'm going to shelve this idea.
Thus spake Eliezer:
It seems that many here might have outlandish ideas for ways of improving our lives. For instance, a recent post advocated installing really bright lights as a way to boost alertness and productivity. We should not adopt such hacks into our dogma until we're pretty sure they work; however, one way of knowing whether a crazy idea works is to try implementing it, and you may have more ideas than you're planning to implement.
So: please post all such lifehack ideas! Even if you haven't tried them, even if they seem unlikely to work. Post them separately, unless some other way would be more appropriate. If you've tried some idea and it hasn't worked, it would be useful to post that too.