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Senior Contributor
Posts: 4,831
Registered: ‎04-20-2007
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Re: AMEX and usage

 


haulingthescoreup wrote:

lol, it wasn't me who used it; it was someone who got the number and expiration date, probably at the Days Inn reservation center.

 

That card was replaced with another Gold, which I then closed before I had to pay for it. Now I have a lowly Blue, which works as well.

 

Just an example of how I found PayPal to be not terribly concerned with consumer credit protections!

 

 

eta: just re-read your post --if you meant not using an AmEx to reserve hotel rooms, I have to say that I was so impressed at their helpfulness that now I do use an AmEx card to hold rooms. When we were on the phone with PayPal, I felt like a spectator at Wimbledon, listening to the AmEx CSR's chew out their PayPal counterparts. :smileyvery-happy:


No I know you didn't but they have tightened up what they consider a purchase/cash advance.

 

Senior Contributor
Posts: 3,626
Registered: ‎10-13-2009
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Re: AMEX and usage


TimothyBryce wrote:

From what I've read, there are issues with Amex and people who make numerous Paypal transactions.  I'm not going to dispute the fact that it is a convenient way to transfer money, since its basically giving any person with a computer their own card swiper.  The problem in Amex's eyes is that any transaction via PayPal goes through as a purchase.  

 

For example if you were to call me and say that you needed cash quickly and that you were going to PayPal me 1000 dollars from your card and then wanted me to hand that money to you.  That registers as a purchase on your Amex card which you get reward points for.  But in actuality it is a hidden cash advance.

 

Bottom line is you do what you want to do, but in this climate doing anything that can be questioned may result in an account closure. 


Actually, when you use PayPal for a transaction there are three options of which you have to select one:

 

1.  Purchase of merchandise;

2.  Payment for services; or

3.  Send cash.

 

If you select #3 your credit card company may decline the transaction or else just consider it a cash advance.  The scam comes in when you select #1 or #2 and are really just sending cash to yourself or a friend.

IAALBNYL
Senior Contributor
Posts: 3,626
Registered: ‎10-13-2009
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Re: AMEX and usage


haulingthescoreup wrote:

Congrats on getting on top of things!

 

Supposedly AmEx doesn't track usage and punish "undesirable" patterns any more, after a pretty good public exposure. At any rate, I haven't seen anything recent, as in over the last year, that indicates that they're still doing so.

 

I suppose the most traditional (= safe) usage would be for their original purposes: travel, hotels and airlines, restaurants, and so forth. I've used it for groceries, although I prefer to use my PenFed for the 2%. I've handed it over at the Chick-Fil-A drive-thru for my $5.72 chicken nuggets. I'm past my Babies R Us stage, thank the Lord, but I've used it at WalMart, and the ceiling has not caved in. In fact, I have never had any negative feedback or even throat-clearing by American Express, although I'm well aware that this isn't true for everyone.

 

Just in my personal experience, AmEx likes you to use your card a lot and pay it off that month, period.


Within the past week or so one of our beloved moderators posted how AmEx automatically sent him to FR Hell just because he charged legal services to his AmEx.

 

One thing you can count on, AmEx is still gaming the system.

IAALBNYL
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Posts: 28,098
Registered: ‎04-01-2007
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Re: AMEX and usage

Yikes!

 

OK, more evidence that I'm way behind on reading posts!

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Moderator Emeritus
Posts: 16,375
Registered: ‎03-12-2007
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Re: AMEX and usage

I'm done saying nice things about Amex.:smileysad:

Credit Profile -
FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: EX 1, EQ 1

Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring Mastercard ~ Chase Freedom Visa ~ CITI Dividend Platinum World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
Valued Member
Posts: 49
Registered: ‎05-20-2010
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Re: AMEX and usage

 


O6 wrote:

Actually, when you use PayPal for a transaction there are three options of which you have to select one:

 

1.  Purchase of merchandise;

2.  Payment for services; or

3.  Send cash.

 

If you select #3 your credit card company may decline the transaction or else just consider it a cash advance.  The scam comes in when you select #1 or #2 and are really just sending cash to yourself or a friend.


 

If it was me personally I'd still avoid using Amex on PayPal, even with the 3 choices for type of payment.  If you know its something they're sensitive on its best to use a different card.  Its not worth it to me to lose a TL for something that can be avoided and I'm guessing most people who carry Amex have at least another card that is a Visa or MC.

 

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