AMEX BCP question.

Anonymous · ‎03-09-2015

I'll be apping for either the BCP or BCE by the end of this week, and wanted to ask a quick question. I've read that some member that can't justify or just can reach the 6k cap on groceries by visa/MasterCard prepaid cards to "fill in the gap" so they can maximize the cash back and still have the money for when it's needed I.e not spending it on things they don't need, you're basically time shifting your money. Me myself I spend about 4500 a year on groceries so I won't quite meet the 6k cap and there for break even or come out ahead after the annual fee. My question is does amex even allow this? By allow I mean when you buy a prepaid visa/mc at the groceries store don't they count that transaction as a cash advance? Or do they indeed count it as a regular grocery store purchase? Just trying to figure out which of the two cards I should app for, I know the BCE would be the right card for my spending now but if I can cap on the 6% 6k cap by buying prepaid cards to pay my bill and such later down the line I'll just get the BCP and do it that way for more cash back.

Runitup · ‎03-09-2015

@Anonymous wrote:
I'll be apping for either the BCP or BCE by the end of this week, and wanted to ask a quick question. I've read that some member that can't justify or just can reach the 6k cap on groceries by visa/MasterCard prepaid cards to "fill in the gap" so they can maximize the cash back and still have the money for when it's needed I.e not spending it on things they don't need, you're basically time shifting your money. Me myself I spend about 4500 a year on groceries so I won't quite meet the 6k cap and there for break even or come out ahead after the annual fee. My question is does amex even allow this? By allow I mean when you buy a prepaid visa/mc at the groceries store don't they count that transaction as a cash advance? Or do they indeed count it as a regular grocery store purchase? Just trying to figure out which of the two cards I should app for, I know the BCE would be the right card for my spending now but if I can cap on the 6% 6k cap by buying prepaid cards to pay my bill and such later down the line I'll just get the BCP and do it that way for more cash back.

Haven't tried it yet but I plan on buying gas cards at my local supermarket to take advantage of the 6% because like you, I don't spend 6k/year in food. Also keep in mind AMEX offers a sign up bonus which will pay for the annual fee for three years.

Anonymous · ‎03-09-2015

@runitup Didn't know they were offering a bonus, probably because the website knows I have a card. I've haven't read about anyone having problems but I just wanted to ask to be sure before I pull the trigger. Hopefully someone else will chime in.

WillTeasle · ‎03-09-2015

According to the card terms (emphasis mine):

"Eligible Purchases means purchases for goods and services minus returns and other credits. Eligible purchases do NOT include fees or interest charges, balance transfers, cash advances, purchases of travelers checks, purchases or reloading of prepaid cards, or purchases of other cash equivalents. Additional terms and restrictions apply."

Having said that, there are few retailers that provide that much information on what items are purchased, so many do exactly this without issue. Technically, it's against the terms and if caught there could be consequences (people have definitely had Amex accounts closed for exploiting this). Can't go in to much more detail as this is already bordering on MS discussion. The risk/reward assessment will have to be performed by you.

Runitup · ‎03-09-2015

My guess is if you throw a gas card in with the rest of your groceries, it shouldn't be a problem but not 100% sure.

longtimelurker · ‎03-09-2015

@Anonymous wrote:
@Runitup Didn't know they were offering a bonus, probably because the website knows I have a card. I've haven't read about anyone having problems but I just wanted to ask to be sure before I pull the trigger. Hopefully someone else will chime in.

Unless the store does level 3 reporting (and they check) Amex has no way of knowing what you bought and certainly won't charge it as a cash advance. You are talking about buying maybe 3 $500 cards over the course of a year. This is not a problem.

It's the pattern of large unusual spending that catches attention. So they shut down my card after 9 months of spending $25-30K a month at groceries and drug stores. Again, they didn't know what I bought, but they were able to have a good guess.

Anonymous · ‎03-09-2015

Thanks @willteasle definitely dont want to tread the line of MF on the forum or in real life. Just thought I'd ask before I decide which card.

Anonymous · ‎03-09-2015

@longtimelurker that's insane dude 25-30k a month?!

yfan · ‎03-09-2015

Please be aware that what you are asking about is MS, and even if it is technically possible to do to a degree before you get caught, the practice isn't exactly promoted or condoned on MyFico.