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Discover question. Is this a bad thing?

Super Contributor

Discover question. Is this a bad thing?

Ok so while messing around witth the discover app on iPhone, I noticed that there's a send money feature, powered by PayPal.

The sweet benefits of this feature is that I can send money, using my discover card, to someone, who doesn't have to be a discover member. Best part of it all is that both sender and receiver are not subject to 3% fee that PayPal usually charges when the payment is funded by a credit card.

There is a limit of 1000 per month, and the transfer is charged at regular purchase apr, not as a cash advance. Cashback is earned on transfers!!!

Now in my mind, I can transfer this to my girlfriend, and pay the 1000 off immediately. If I do this each month, its effectively 120 in cashback + more usage on my discover card. The 120 alone is more than what BofA gives as bonus for paying on time for the better balance card.

However my main concern is that as sweet as this pseudo manufactured spending sounds, will it affect my CLI chances? Or will it affect anything negatively?

What about cash-overs at grocery stores as well?

Thanks!
JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Message 1 of 21
20 REPLIES
Moderator Emerita

Re: Discover question. Is this a bad thing?

It's a good question. I noticed it to and I wondered are they tracking it for whatever reasons that may be detrimental. I used the cash back feature once for $20 and it made me nervous. Decided not to do it again.
Message 2 of 21
Mega Contributor

Re: Discover question. Is this a bad thing?


enharu wrote:
Ok so while messing around witth the discover app on iPhone, I noticed that there's a send money feature, powered by PayPal.

The sweet benefits of this feature is that I can send money, using my discover card, to someone, who doesn't have to be a discover member. Best part of it all is that both sender and receiver are not subject to 3% fee that PayPal usually charges when the payment is funded by a credit card.

There is a limit of 1000 per month, and the transfer is charged at regular purchase apr, not as a cash advance. Cashback is earned on transfers!!!

Now in my mind, I can transfer this to my girlfriend, and pay the 1000 off immediately. If I do this each month, its effectively 120 in cashback + more usage on my discover card. The 120 alone is more than what BofA gives as bonus for paying on time for the better balance card.

However my main concern is that as sweet as this pseudo manufactured spending sounds, will it affect my CLI chances? Or will it affect anything negatively?

What about cash-overs at grocery stores as well?

Thanks!

I'm pretty sure that would lead to some kind of flag in their system and eventual AA or account closure Smiley Happy




EQ FICO 548 3/3/16
Message 3 of 21
Established Contributor

Re: Discover question. Is this a bad thing?

I use the feature often, but to different people. No one ever complained about this so far. But sending 1K every months to the same person could raise some questions ...

Amex Platinum | Discover IT | Amex BCE | Citi DCB | Chase Sapphire Reserve | Chase Sapphire Preferred | CapOne | NFCU goRewards and CLOC | Chase Freedom | Walmart | Alliant CU Visa | Couple of Biz Cards | Gone for good: CapOne secured (thx for getting me started) | Amex Zync (thx for getting me into AX)

FICO (TU/EX/EQ): 737/772/752 - Total CL 215+K

Message 4 of 21
Moderator Emeritus

Re: Discover question. Is this a bad thing?


LS2982 wrote:

enharu wrote:
Ok so while messing around witth the discover app on iPhone, I noticed that there's a send money feature, powered by PayPal.

The sweet benefits of this feature is that I can send money, using my discover card, to someone, who doesn't have to be a discover member. Best part of it all is that both sender and receiver are not subject to 3% fee that PayPal usually charges when the payment is funded by a credit card.

There is a limit of 1000 per month, and the transfer is charged at regular purchase apr, not as a cash advance. Cashback is earned on transfers!!!

Now in my mind, I can transfer this to my girlfriend, and pay the 1000 off immediately. If I do this each month, its effectively 120 in cashback + more usage on my discover card. The 120 alone is more than what BofA gives as bonus for paying on time for the better balance card.

However my main concern is that as sweet as this pseudo manufactured spending sounds, will it affect my CLI chances? Or will it affect anything negatively?

What about cash-overs at grocery stores as well?

Thanks!

I'm pretty sure that would lead to some kind of flag in their system and eventual AA or account closure Smiley Happy


+1. I would be careful about abusing this feature.


Current Scores: EQ 775 (03/04/2014), EX 756 (03/01/2014), TU 760 (03/01/2014)
Ruby Spade Garden Club Member - Last App: 03/04/2013 - No apps until 2014
Cards: Cap1 Venture 6.4k, Cap1 Quicksilver MC 1.75k, BankAmericard 1-2-3 Visa Signature - UCF Alumni Association 5k, Discover 7k, Citi Diamond Preferred MC 10.35k, Wells Fargo Rewards Visa 7k, Chase Freedom 5k, Chase Ink 7.5k, Amex Green NPSL, Dillard's Amex 7.5k, JC Penney 7.5k, Kay Jeweler's 5.1k
Message 5 of 21
Super Contributor

Re: Discover question. Is this a bad thing?

Ah thanks. Guess I won't do it then.

I've been using cash over feature only because I needed cash though, and I've been paying my bill down almost completely. Hopefully this doesn't haunt me :/
JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Message 6 of 21
Mega Contributor

Re: Discover question. Is this a bad thing?


enharu wrote:
Ah thanks. Guess I won't do it then.

I've been using cash over feature only because I needed cash though, and I've been paying my bill down almost completely. Hopefully this doesn't haunt me :/

Thats exactly how you should use the feature and what Discover hopes you do: when you need it. 




EQ FICO 548 3/3/16
Message 7 of 21
Super Contributor

Re: Discover question. Is this a bad thing?

Thanks a lot for the info! Appreciate the help! Smiley Happy
I was so tempted to do it this morning and I'm glad I asked lol
JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Message 8 of 21
Super Contributor

Re: Discover question. Is this a bad thing?


enharu wrote:
Ok so while messing around witth the discover app on iPhone, I noticed that there's a send money feature, powered by PayPal.

The sweet benefits of this feature is that I can send money, using my discover card, to someone, who doesn't have to be a discover member. Best part of it all is that both sender and receiver are not subject to 3% fee that PayPal usually charges when the payment is funded by a credit card.

There is a limit of 1000 per month, and the transfer is charged at regular purchase apr, not as a cash advance. Cashback is earned on transfers!!!

Now in my mind, I can transfer this to my girlfriend, and pay the 1000 off immediately. If I do this each month, its effectively 120 in cashback + more usage on my discover card. The 120 alone is more than what BofA gives as bonus for paying on time for the better balance card.

However my main concern is that as sweet as this pseudo manufactured spending sounds, will it affect my CLI chances? Or will it affect anything negatively?

What about cash-overs at grocery stores as well?

Thanks!

Since it is capped, it's probably not too heavily monitored, but that leads to the question of how much you value the Discover: if for whatever reason they decided you had abused it and closed your cards, would the gains prior to that  event outweigh that? 

 

If you are sending to the same person each month, I would use an amount just under $1000, looks less suspicious!

Message 9 of 21
Super Contributor

Re: Discover question. Is this a bad thing?

Haha yea I don't want them to close my account lol. I'm wishing for an auto CLI or sp CLI so I guess I will avoid messing with this
JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Message 10 of 21