Gift Cards considered cash advance??

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chas0039
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Gift Cards considered cash advance??

Postby chas0039 » Sun Jan 19, 2014 11:22 am

I just read on another site that Citi and Chase consider gift cards to be cash advances. I have checked with AmEx and Discover and they do not do this.

Does anyone here have information about this? Is it bogus info or is there really something we need to watch for?

Thanks


samhradh
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Postby samhradh » Sun Jan 19, 2014 1:28 pm

chas0039 wrote:I just read on another site that Citi and Chase consider gift cards to be cash advances. I have checked with AmEx and Discover and they do not do this.

Does anyone here have information about this? Is it bogus info or is there really something we need to watch for?

Thanks


It's YMMV but rare and has never happened to me. I don't think you need to worry. I did but after doing searches for evidence I came up empty handed so I decided not to concern myself. Maybe someone else knows more?
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).

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otter
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Postby otter » Sun Jan 19, 2014 1:40 pm

samhradh wrote:It's YMMV but rare and has never happened to me. I don't think you need to worry. I did but after doing searches for evidence I came up empty handed so I decided not to concern myself. Maybe someone else knows more?


It's their way of scaring people into not buying a ton of gift cards to get points/cash. There's not really any way for them to tell (although I suppose it is possible for merchants to code it that way, but there would be no reason for them to do that).
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

whit
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Postby whit » Sun Jan 19, 2014 1:55 pm

Smart ones wouldn't just buy straight gift cards but throw in something into the mix so the transaction is not solid 500.00 or 502.50

But with taxes added in something like 523.94

Anyways, I'm sure the smarter the con the smarter the issuers will have to be but I'm always amazed by how people do things, some missing the elementary things

cashback
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Postby cashback » Sun Jan 19, 2014 2:19 pm

Adding things in just cuts into profits. You arent hiding anything by adding extra items in.
Credit Cards
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

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781

MemberSince99
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Postby MemberSince99 » Sun Jan 19, 2014 3:18 pm

I've personally not seen that spelled out in the Terms and Conditions. I could have missed it but I've never seen it. If they wish to alter them, which they are free to do, I believe they are supposed to notify you in writing of that.


I don't buy gift cards but if I did and they considered that a cash advance, I would call and raise hell about it.

chas0039
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Postby chas0039 » Sun Jan 19, 2014 3:56 pm

Some more digging turned up some issues specifically with cards coded incorrectly on some Air website this last fall. The Pointsguy website blog seems to have reported this as all gift cards.

whit
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Postby whit » Sun Jan 19, 2014 5:03 pm

cashback wrote:Adding things in just cuts into profits. You arent hiding anything by adding extra items in.


U can return items just like in CA u can return gift cards for cash

Silly

And when you have ur credit cards statement does it say which items (outlining them one by one) u purchased or just the grand total (spent at the store)??

whit
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Postby whit » Sun Jan 19, 2014 5:17 pm

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.

(:

chas0039
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Postby chas0039 » Sun Jan 19, 2014 8:29 pm

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.



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