Gift card purchase didn't code as cash advance!

[icyhot]

Went to the grocery store to buy a gift card as an incentive for my students, tried my Hilton AMEX, denied. Cashier told me it won't take a credit card for a gift card purchase. I didn't listen and used my BofA cash, it took. Cashier was so confused because they aren't supposed to take credit cards, but oh well. I checked my account immediately after and it coded as grocery purchase, not cash advance. So I guess it depends on the bank

[longtimelurker]

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@icyhot wrote:
Went to the grocery store to buy a gift card as an incentive for my students, tried my Hilton AMEX, denied. Cashier told me it won't take a credit card for a gift card purchase. I didn't listen and used my BofA cash, it took. Cashier was so confused because they aren't supposed to take credit cards, but oh well. I checked my account immediately after and it coded as grocery purchase, not cash advance. So I guess it depends on the bank

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Buying a gift card at a grocery store will (almost) never codes as a cash advance, it is always just a grocery purchase.   The cash advance stuff comes in with buying stuff from finanacial institutions such as buying Amex cards directly online from Amex.

Now some grocery stores will hardcode that credit cards cannot purchase gift cards, but that isn't an issuer restriction

[longtime_lurker]

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@longtimelurker wrote:

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@icyhot wrote:
Went to the grocery store to buy a gift card as an incentive for my students, tried my Hilton AMEX, denied. Cashier told me it won't take a credit card for a gift card purchase. I didn't listen and used my BofA cash, it took. Cashier was so confused because they aren't supposed to take credit cards, but oh well. I checked my account immediately after and it coded as grocery purchase, not cash advance. So I guess it depends on the bank

---

Buying a gift card at a grocery store will (almost) never codes as a cash advance, it is always just a grocery purchase.   The cash advance stuff comes in with buying stuff from finanacial institutions such as buying Amex cards directly online from Amex.

Now some grocery stores will hardcode that credit cards cannot purchase gift cards, but that isn't an issuer restriction

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+1 there is a Kroger near me that declines gift cards at the manned registers when paying with CCs, but doesn't at self-scans. No idea why, but my transaction was declined when I tried to buy a $25 Olive Garden GC with a cashier lol. I wonder if I had bought other items if it would have been approved...hmm

[empiror22]

I have recently purchased a $100 amazon gift card for a birthday gift (from kroger in cincinnati, ohio, kroger does the gas bonus for gift cards) it coded as a normal transaction.  I buy about $500 dollars in gift cards a year for gifts ( not manufactured spending) and have never had a problem. they always code them as normal purchases i.e. not gift cards or cash advances.  basically code as a normal transaction at the store.

[kdm31091]

I've never heard of a gift card purchase being called a cash advance.

As far as restricting payment methods, it's only a matter of time. More and more stores are disallowing CC payments for gift cards. Eventually it's likely not going to be possible at all.

[Anonymous]

I dont see that happening. I work for a major retailer. Although I don't see what happens on the floor too much I can tell you that we are the top earning store in my area and I rarely see MS. And honestly..only time I see people buying tons of GC's on CC is Christmas (mainly older customers for grandkids) and the occasionally stolen wallet. It's not as common as everyone thinks.

[kdm31091]

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@Anonymous wrote:
I dont see that happening. I work for a major retailer. Although I don't see what happens on the floor too much I can tell you that we are the top earning store in my area and I rarely see MS. And honestly..only time I see people buying tons of GC's on CC is Christmas (mainly older customers for grandkids) and the occasionally stolen wallet. It's not as common as everyone thinks.

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I would agree it spikes around the holidays. I'm in retail too. I think most retailers are less bothered by the "store use" gift cards like home depot, kohl's etc but I have seen some stores implement "no credit card payments" for Visa/MC gift cards. I don't know that it will become eventually a normal policy across all retailers but it seems like it would. We'll see.

[icyhot]

Ok good! I read something saying that may come to be the new wave. I'm glad it's not

[Callandra]

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@Anonymous wrote:
I dont see that happening. I work for a major retailer. Although I don't see what happens on the floor too much I can tell you that we are the top earning store in my area and I rarely see MS. And honestly..only time I see people buying tons of GC's on CC is Christmas (mainly older customers for grandkids) and the occasionally stolen wallet. It's not as common as everyone thinks.

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When I worked at Target, I would get at least one scammer a week trying to buy Visa GCs with a stolen CC. I think it depends on the store's location; that Target was just off the highway so our store was a rest-stop/scammer's heaven. 

Target does not allow Visa/MC GCs to be purchased with a store gift card (for obvious reasons) but does allow CC payments for it. 

[Anonymous]

I understand what your saying but we might get one every 500 customers. If that. At my old location we would see them more often because we were across the street from an outlet center.