topic Re: Are gift cards ever considered cash advances? in Credit Cards

Are gift cards ever considered cash advances?

pdxuser — Sun, 26 Oct 2008 03:36:39 GMT

I know purchases of money orders, traveler's checks, securities, casino chips and lottery tickets are considered cash advances. What about gift cards? Are there other items that are considered cash advances?

Re: Are gift cards ever considered cash advances?

tatiana — Sun, 26 Oct 2008 05:23:42 GMT

Not sure, and it may depend. I think in most instances, gift cards are considered purchases. My only firsthand experience with "gift cards" purchased ith plastic involves Disney Dollars; when you buy 'em at Disneyland or Walt Disney World, it counts as a purchase, NOT a cash advance. People buy a crapload with their cards, then exchange it for cash when it's time to leave (gotta keep the original receipt to do that, though). Woo.

Re: Are gift cards ever considered cash advances?

Anonymous — Sun, 25 Jan 2009 05:34:33 GMT

anyone else want to weigh in on this issue?

Re: Are gift cards ever considered cash advances?

Anonymous — Sun, 25 Jan 2009 15:38:35 GMT

I've purchased many traditional gift cards in the past at Wal-mart, Home Depot, BP, Target, restaurants, etc to give as gifts especially around birthdays or holidays. They have always been counted as purchases at that store or business.

On a side note: In my state we cannot purchase lottery tickets with a credit card. Cash or check only.

Message Edited by jedijennifer on 01-25-2009 07:38 AM

Re: Are gift cards ever considered cash advances?

sammyfire2001 — Sun, 25 Jan 2009 15:38:37 GMT

I've bought many gift cards, the 2 latest Bed, Bath & Beyond and Juicy Couture and they were processed as purchases.

Re: Are gift cards ever considered cash advances?

Anonymous — Sun, 25 Jan 2009 17:44:53 GMT

how about Simons mall gift cards? are they considered a cash advance if you purchase one online with credit card? and can you buy one using paypal?

Re: Are gift cards ever considered cash advances?

Anonymous — Sun, 25 Jan 2009 20:43:45 GMT

i have purchased many thousands worth of gift cards and have never gotten charged a cash advance fee. I have purchased simon malls cards, gift cards from stores and more frequently gift cards from safeway since they count as a grocery store so i get the 5% off from my CC in addition to their gas rewards program($3 per 100 on gift cards) which is about 8% discount

Re: Are gift cards ever considered cash advances?

MattH — Sun, 25 Jan 2009 21:10:27 GMT

In the current economic climate, do be careful about buying gift cards to make sure the merchant is solvent and likely to remain so. You don't want to be holding a gift card from the next Linens & Things or Circuit City (to name just a couple of high-profile retailers who have collapsed recently).

Re: Are gift cards ever considered cash advances?

KingAdrock — Sun, 25 Jan 2009 21:31:26 GMT

@tatiana wrote:
Not sure, and it may depend. I think in most instances, gift cards are considered purchases. My only firsthand experience with "gift cards" purchased ith plastic involves Disney Dollars; when you buy 'em at Disneyland or Walt Disney World, it counts as a purchase, NOT a cash advance. People buy a crapload with their cards, then exchange it for cash when it's time to leave (gotta keep the original receipt to do that, though). Woo.

That sounds pretty bizarre to me. If you have to show the original reciept, then they know you bought it with plastic. Why would they give you cash? Why not credit your CC account? What if the card was stolen? I think if they are still doing this they won't be for long.

Re: Are gift cards ever considered cash advances?

tatiana — Mon, 26 Jan 2009 13:52:12 GMT

To be honest, I was a little shocked when my friend Jim first clued me into the practice back in 2000. Further, it is entirely possible that they have recently or are currently reevaluating the redemption rules for these reasons. However, the cash back policy makes sense considering that Disney treats Disney Dollars as "real money."

"Our policy has always been that they're worth a dollar to us -- in merchandise or cash." - Bob Jimenez, Walt Disney Co.

Further, the Disney Dollar economy is so insular and the Disney Dollars themselves so unique that Disney usually ends up coming out ahead by making their scrip so convenient: people are lazy and less likely to exchange Disney Dollars for cash after the fact, which means either guaranteed expenditure of the scrip on Disney merch OR, even better, no expenditure at all (people collect them as souvenirs), which makes the original purchase of the Disney Dollars pure profit for the company.

Because of all that, Disney's historic stance has been that they don't care how your DDollars were purchased. Later, they amended that stance by *sometimes* requesting some sort of verification that they were 1) legitimately obtained by Disney guests at Disneyland, Walt Disney World, or The Disney Store and 2) not counterfeited or purchased after the fact for less than face value to be bundled and redeemed for a profit. Showing a receipt fulfills this requirement, though not every cast member or location seems to observe this - as of two years ago, I could redeem my Disney Dollars at Walt Disney World for cash WITHOUT a receipt. Since Disney regards this scrip as cash equivalent, and because it would be a logistical nightmare to require otherwise, any purchase you make with Disney Dollars at theme park shops and restaurants gets you change back in regular U.S. currency. Exchange without purchase is in most cases an indistinguishable proposition.

At any rate, Disney makes the same amount of money on the final group of transactions no matter what your initial method of payment, so it really doesn't matter how you bought them - merely the fact that SOMEONE did.

Depending on who's redeeming your Disney Dollars, you may be asked to present your card to verify that you were the legitimate buyer (my best friend was, last year at Disneyland), although I've never been asked for more than a receipt; Ostensibly, to have used a credit card for the initial purchase in the first place, you'd have to've shown identification as well, which for the most part nullifies the stolen card angle. While this has not been my personal experience, you might be able to request an account credit if that's you're preference.

A reliable and well-respected summary of the policy by an industry expert is available here:

http://www.mousesavers.com/otherdl.html#cash

"Disney Dollars are accepted just like US currency at all restaurants, shops and outdoor vending carts throughout the parks. So simply visit any in-park location that sells Disney Dollars, and buy the amount you need with a check card or credit card. The transaction is considered a purchase of gift certificates, so the credit card and check card companies do not charge a cash advance fee. Spend the Disney Dollars in the parks, and if you have any left over when you are ready to leave, trade them back in for US currency. However, be sure to save the receipt, as that is usually required if you want to turn in Disney Dollars for real cash."

Re: Are gift cards ever considered cash advances?

Anonymous — Mon, 26 Jan 2009 13:59:14 GMT

@MattH wrote:
In the current economic climate, do be careful about buying gift cards to make sure the merchant is solvent and likely to remain so. You don't want to be holding a gift card from the next Linens & Things or Circuit City (to name just a couple of high-profile retailers who have collapsed recently).

Good advice. I don't know about linens & Things, but when Circuit City made the announcement they were liquidating, they did say that at that time they would continue to honor their gift cards.

If you want to purchase a gift card for someone you can always get one with a strong bank that usually comes out to be a Visa card so the person can use it wherever they want.

Only downside: Unless you have a lot of money with the bank, there's usually a fee that can be anywhere from 3.5-4.95

Re: Are gift cards ever considered cash advances?

oracles — Mon, 26 Jan 2009 18:03:11 GMT

I purchased gift cards for Christmas ( I hate to shop) and always was charged as a purchase. Never a cash advance.

Also, very good point on making sure you purchase a gift card from a company that is not going out of business.

Also know the terms of the gift card, because some stores will start to charge a fee monthly if the card is not used in a certain time period.

I had B&N card and I did not use it until a year afterwards. I had less on the card than its orignal purcahsed amount because of the monthly fee of not using it in a particular time period.

Definitely have the person or you check the Terms and Conditions

Re: Are gift cards ever considered cash advances?

Anonymous — Mon, 26 Jan 2009 22:25:20 GMT

anybody ever have trouble activating a simons giftaccount online?