Gift Cards considered cash advance??

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otter
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Postby otter » Sun Jan 19, 2014 8:52 pm

whit wrote:btw some stores will not allow u to purchase gift cards on cc for this very reason which is a shame for those who aren't abusing it but it makes sense

Walgreens being one of them if ur wondering,
although it maybe a training the cashier thing then a cash wrap system thing so there might be some that gets lucky at Walgreens

I'm sure as people get smart the issuers will get smarter.

(:


Most stores which don't allow gift card purchases with credit cards because of policy typically program the register to not allow the purchase.
In my Wallet:
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  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
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  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
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whit
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Postby whit » Sun Jan 19, 2014 8:55 pm

I don't think so

because the company handling the gift cards must hold the money until they're redeemed which is why there can be surprising fees on it if it's not used within a reasonable time

and if there was a special way to code it they would do so with the whole transaction not just part of, which is why I said all I said above

how can they tell if someone is buying a gift card if there isn't other stuff with it?

which is exactly why those who just buy gift cards and only gift cards, by pattern, get caught. NoT the "coding"

but you suspect so so it's moot

whit
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Postby whit » Sun Jan 19, 2014 9:00 pm

@otter thanks for insight

I don't typically buy gift cards but when I did I was shocked that they would not let me put it on card and on top of it charge a few dollars to buy..that was years ago and before I learned of MS

if people have that type of time and dedication I always believe they could get themselves a better job/career which would make doing stuff like that pointless but that's just my two cents

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otter
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Postby otter » Sun Jan 19, 2014 9:35 pm

chas0039 wrote:I would suspect that gift cards as well as few other financial items clearly show up to the CC company. They are processed in a unique way at the checkout. With the way computers are connected these days, they can track anything they want.


I can say with a pretty high degree of certainty that under ordinary circumstances, credit card companies do not know when a gift cards is purchased unless the merchant codes it as a cash advance. The exception would be any kind of commercial card (such as the Mastercard Fleet Card, Visa Commercial Card, or any kind of truck fuel card).

This is why trucking companies, until a few years ago, stayed away from V/MC/D/Amex... because truck drivers would take the company's Visa Card to the "Gentlemen's Club" across from the truck stop and tell their bosses they bought $500 in fuel. Trucking companies asked Visa/Master Card for help and were told the network wasn't set up to allow tracking by type of spending other than purchases and cash advances. So the trucking industry created their own alternate card system(cards like Comdata, T-chek, etc) to track exactly what their employees bought and also limit where they bought it. I know this because I've worked in the truck stop world for a decade, in management and accounting. So unless you have some sort of fleet or commercial card, there isn't enough information being passed from the merchant to the credit card company to track what items you are spending

A caveat though: If the credit card company does suspect you are buying gift cards... they CAN ask the merchant for a copy of the receipt, even without asking the customer.
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

cashback
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Postby cashback » Sun Jan 19, 2014 10:39 pm

whit wrote:I don't think so

because the company handling the gift cards must hold the money until they're redeemed which is why there can be surprising fees on it if it's not used within a reasonable time

and if there was a special way to code it they would do so with the whole transaction not just part of, which is why I said all I said above

how can they tell if someone is buying a gift card if there isn't other stuff with it?

which is exactly why those who just buy gift cards and only gift cards, by pattern, get caught. NoT the "coding"

but you suspect so so it's moot


You are so far off... keep trying to increase your MS skills. Good luck.
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JoDa
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Postby JoDa » Sun Jan 19, 2014 11:22 pm

I have not seen this with Chase. There's a coffee shop near my office I frequent, but it has a $10 minimum credit card charge. Since it's not Starbucks (lol) and I'm only getting iced coffee, my purchase is never more than a couple dollars. So I have a gift card with them and I just slap another $20 on it from time-to-time so I can avoid the minimum purchase. Chase has never treated that as anything other than a regular retail purchase, and I've been doing this once a month or more for the last year+. I've also purchased gift cards for departing coworkers on my credit card when I was tasked with being the gofer for the parting gift...same thing, treated as a regular retail purchase (though, in those cases, I'm usually buying a card for something else (Amazon is common, could also be a specialty retailer we know they like) at CVS).

Also, I do know a number of people who buy gift cards FOR THEMSELVES from certain retailers to get in on rewards. Heck, our local grocery store ADVERTISES that you should do this to max out on their gas rewards (if you buy a lot of gas, $.10 off/gallon/$100 spent could really add up, especially if you're in the market for big things...I've seen people in line buy $1000 in Home Depot cards and then seen them walking across the parking lot to the Home Depot to shop). Certainly, if most card companies were charging them the massive cash advance fees for buying gift cards, the practice would cease.
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whit
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Postby whit » Mon Jan 20, 2014 2:40 am

cashback wrote:You are so far off... keep trying to increase your MS skills. Good luck.


And your reading skills suck, or you're just misinterpreting my other reply, which is to say

I do not do MS, I make more with my job and am quite content with my salary, thanks

Also, what do you mean I am so far off?

It's annoying when people say stuff like that and then do not have anything concrete to back it up with, and so, your opinion must be correct because of that one liner, nice.

cashback
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Postby cashback » Mon Jan 20, 2014 12:12 pm

whit wrote:And your reading skills suck, or you're just misinterpreting my other reply, which is to say

I do not do MS, I make more with my job and am quite content with my salary, thanks

Also, what do you mean I am so far off?

It's annoying when people say stuff like that and then do not have anything concrete to back it up with, and so, your opinion must be correct because of that one liner, nice.


Its also annoying when people make claims on a subject they know nothing about. Explaining things to you would take a while and benefit me none. Therefore making it not worth my time.

Making $100+/hr tax free for easy work is worth my time.
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Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

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