We've been using our Alliant Visa to pay our utilities and other monthly bills online - and it's worked out swell. Are there some things that would be credited as a cash advance rather than a purchase when I use my card? (Aside, of course, from a cash advance). I've seen a few postings that have me confused - and I'm not (yet!) very CC savvy. For example, if I swipe the card at my dentist or attorney, is that a purchase?
I do not have a Alliant card but I do use my chase card to pay all my bill for cash back. I have never had any thing show up as a cash advance even when paying a doctor.
Starting Score: 744 Current Score: 744 Goal Score: 800
The only time a purchase is considered a cash advance is when the card is used at the ATM. And perhaps in some instances with those checks they send in the mail.
You don't have to worry too much about being charged the cash advance rate without knowing it. Sometimes when you fund an account you have just opened they offer to let you use a credit card for your initial deposit. Some institutions charge a cash advance rate for this transaction and/or put a cap on the amount you can charge/deposit to avoid arbitrage. You have to be careful with some balance transfer checks. Some utilities and mortgage/rent payments charge you a 2% or 3% surcharge for using a credit card but they are still processed as a purchase. I'm sure I have forgotten something important.
oh yes - this helps tremendously. Feeling the brain fog dissipate rapidly.
So, if DH is using his new Kroger 1-2-3 card at the dentist, he can:
1) swipe the card - it's a purchase and gets rewards
2) write a Kroger check ("With these checks enjoy the savings of your card's low 2.99% APR until April 2010" - that's balance transfer talk, right?) - it's a balance transfer with fees and no rewards.
oh yes - this helps tremendously. Feeling the brain fog dissipate rapidly.
So, if DH is using his new Kroger 1-2-3 card at the dentist, he can:
1) swipe the card - it's a purchase and gets rewards
2) write a Kroger check ("With these checks enjoy the savings of your card's low 2.99% APR until April 2010" - that's balance transfer talk, right?) - it's a balance transfer with fees and no rewards.
How am I doing?
1) Correct
2) Correct assuming that the 2.99 is a promotional APR for balance transfers, which is seems like it is.
Have a question on a similar subject. I've noticed when I use my Discover card at major supermarkets for purchases, the screen offers me cashback in increments of $20. up to $100. Is that considered a cash advance or part of the grocery purchase?
As I understand it, for a long time banks overlooked certain things that resulted in "CASH " transactions and treated them as purchases.
NOW, to get the "cash advance fees", Credit Card Issuers have what they term "CASH EQUIVELENT TRANSACTIONS" which are treated as "cash advances"
These transactions include such things purchased as wire transfers, travelers checks, cashiers checks, money orders, foreign currency, casino gaming and lottery tickets.
Starting Score: 744