topic Re: Using cashback as part of monthly payment? in Credit Cards

Using cashback as part of monthly payment?

dlister70 — Fri, 13 Sep 2019 20:45:36 GMT

I've read a few places that you can't use your cashback to make the minimum payment. However, if you are paying in full, can the cashback be part of that? I've been paying my US Bank Cash + bill by paying the statement balance even though the current balance is lower because I've applied my cashback as statement credit.

As an example, if my bill is $300, and I use $15 of cashback to apply for a statement credit, then my current balance would be $285. So can I just pay $285 at that point? I've been paying the $300 anyway and then my balance is negative until I spend more. But I don't want to somehow get dinged for not paying the statement balance. My concern is that if I use the card after making that payment, then by the time the due date comes, I will still show a balance and I will not have paid the statement balance in full (if they don't count the cashback), so they might start charging interest.

It's not amounted to much money and the surplus goes towards next month's bill anyway, so I haven't bothered to try to figure this out and just keep paying the extra. I just tried to use their live chat to ask, but it wasn't working. I figured maybe someone on here might know the answer.

Re: Using cashback as part of monthly payment?

Anonymous — Fri, 13 Sep 2019 22:21:36 GMT

Not sure about USB, but I've used cash back to pay for part if a statement in my early Chase Freedom days. Usually not an issue there.

Re: Using cashback as part of monthly payment?

Anonymous — Fri, 13 Sep 2019 22:37:11 GMT

Discover let me wipe out my entire minimum payment with cash back one time.

I know Amex doesn’t allow this but other than that I’m not sure what lenders do and don’t.

Re: Using cashback as part of monthly payment?

tcbofade — Fri, 13 Sep 2019 22:37:14 GMT

@dlister70 wrote:
I've read a few places that you can't use your cashback to make the minimum payment. However, if you are paying in full, can the cashback be part of that? I've been paying my US Bank Cash + bill by paying the statement balance even though the current balance is lower because I've applied my cashback as statement credit.

As an example, if my bill is $300, and I use $15 of cashback to apply for a statement credit, then my current balance would be $285. So can I just pay $285 at that point? I've been paying the $300 anyway and then my balance is negative until I spend more. But I don't want to somehow get dinged for not paying the statement balance. My concern is that if I use the card after making that payment, then by the time the due date comes, I will still show a balance and I will not have paid the statement balance in full (if they don't count the cashback), so they might start charging interest.

It's not amounted to much money and the surplus goes towards next month's bill anyway, so I haven't bothered to try to figure this out and just keep paying the extra. I just tried to use their live chat to ask, but it wasn't working. I figured maybe someone on here might know the answer.

Yes.

Your cash back does NOT count against your MINIMUM payment, but it does reduce your balance... if you pay in full, you can pay your statement balance less the cash back amount and no interest charges become due.

We do this monthly on a high volume Capital One card in our household. They've never charged me any interest.

Re: Using cashback as part of monthly payment?

DaveInAZ — Fri, 13 Sep 2019 22:43:36 GMT

Yes, if you're paying your statement balance in full you can use your cashback credit as part of the payment, I do that regularly on a number of cards. Even American Express which states clearly that you cannot use a cashback credit for any part of your minimum payment due has no problem with using it as part of your payment when paying your statement balance in full.

Re: Using cashback as part of monthly payment?

DaveInAZ — Fri, 13 Sep 2019 22:51:40 GMT

@Anonymous wrote:
Discover let me wipe out my entire minimum payment with cash back one time.

I know Amex doesn’t allow this but other than that I’m not sure what lenders do and don’t.

Discover is tthe oddball, you can use a cashback credit for all or part of your minimum payment. They even send you an email "your payment has posted" which confused the heck out of me at first until I figured out they meant the cashback credit.

Re: Using cashback as part of monthly payment?

Anonymous — Fri, 13 Sep 2019 23:33:03 GMT

That works for CapOne also. If I apply cash back on my Quicksilver, it reduces the minimum payment due.

Re: Using cashback as part of monthly payment?

Anonymous — Sat, 14 Sep 2019 01:11:52 GMT

@DaveInAZ wrote:
@Anonymous wrote:
Discover let me wipe out my entire minimum payment with cash back one time.

I know Amex doesn’t allow this but other than that I’m not sure what lenders do and don’t.
Discover is tthe oddball, you can use a cashback credit for all or part of your minimum payment. They even send you an email "your payment has posted" which confused the heck out of me at first until I figured out they meant the cashback credit.

Yep I was shocked when I applied like $70 cash back to my card that it wiped out my minimum due.

Re: Using cashback as part of monthly payment?

Anonymous — Sat, 14 Sep 2019 01:12:21 GMT

@Anonymous wrote:
That works for CapOne also. If I apply cash back on my Quicksilver, it reduces the minimum payment due.

Indeed. I did this with my SavorOne sign up bonus.

Re: Using cashback as part of monthly payment?

Anonymous — Sat, 14 Sep 2019 01:13:05 GMT

I always apply my PPMC cash rewards as a payment towards my balance. I have the option of withdrawing to my bank- but I'd rather use those rewards to keep my balance low.

Re: Using cashback as part of monthly payment?

staticvoidmain — Sat, 14 Sep 2019 01:24:19 GMT

@dlister70 wrote:
As an example, if my bill is $300, and I use $15 of cashback to apply for a statement credit, then my current balance would be $285. So can I just pay $285 at that point?

Yes, IF the payment posts on your account. It should count as a form of partial payment.

Re: Using cashback as part of monthly payment?

Anonymous — Sat, 14 Sep 2019 01:58:43 GMT

@staticvoidmain wrote:
@dlister70 wrote:
As an example, if my bill is $300, and I use $15 of cashback to apply for a statement credit, then my current balance would be $285. So can I just pay $285 at that point?
Yes, IF the payment posts on your account. It should count as a form of partial payment.

This is correct. I applied $10.95 to my minimum balance for this statement and it reflects $14.05 is still left. Therefore my automatic minimum monthly will pick up the rest.

Hope this helps OP

Re: Using cashback as part of monthly payment?

Anonymous — Sat, 14 Sep 2019 07:43:46 GMT

@DaveInAZ wrote:
Yes, if you're paying your statement balance in full you can use your cashback credit as part of the payment, I do that regularly on a number of cards. Even American Express which states clearly that you cannot use a cashback credit for any part of your minimum payment due has no problem with using it as part of your payment when paying your statement balance in full.

Just wondering as a thought experiment: say I have stored up $100 in reward dollars on my BCP. I then get a $50 statement. What happens if I use $50 in reward dollars as payment. Does Amex complain that I didn't meet my min payment?

Re: Using cashback as part of monthly payment?

NRB525 — Sat, 14 Sep 2019 07:59:08 GMT

@Anonymous wrote:
@DaveInAZ wrote:
Yes, if you're paying your statement balance in full you can use your cashback credit as part of the payment, I do that regularly on a number of cards. Even American Express which states clearly that you cannot use a cashback credit for any part of your minimum payment due has no problem with using it as part of your payment when paying your statement balance in full.
Just wondering as a thought experiment: say I have stored up $100 in reward dollars on my BCP. I then get a $50 statement. What happens if I use $50 in reward dollars as payment. Does Amex complain that I didn't meet my min payment?

My guess is AMEX would. A thread a few months ago, where the OP was trying to use up the last of BCP cash back, without consistently using the card for more purchases, ended badly.

My takeaway was, use the card ongoing for new charges, sprinkle in some cash back as statement credit, always pay the prior statement balance in cash even if you apply cash back during the month, and check the next statement balance, at which point the displayed balance to pay for the following month should have been reduced by the cash back as well.

I agree others are seeing Capital One and Discover reducing minimum payment by the applied cash back, but they are not talking about AMEX or US Bank

Re: Using cashback as part of monthly payment?

zerofire — Sun, 15 Sep 2019 19:16:10 GMT

I recently redeemed a bunch of cashback on my US Bank Cash+. It wiped out a full statement and sent my balance negative. I think the idea is that some banks apply it to the outstanding balance without crediting the minimum and others do credit the minimum first. AmEx being the odd one out that still wants the minimum after you wiped out your whole statement.

Re: Using cashback as part of monthly payment?

chiefone4u — Sun, 15 Sep 2019 19:33:09 GMT

If in doubt and you have a checking account with US Bank, transfer your cash into checking and make your payment from checking (simple work around if you have an account with them).

If you don't normally bank with them, but willing to open a checking account, they offer Zelle and mobile deposit as a means of transferring funds to pay your bill.

They do put a hold on mobile check deposits for a few days until they feel confident your check will clear... $200 is available immediately, they rest 72 hours later?

I can deposit $2,500 a day max and $7,000 a week max and funds are available 6am the next day.

Hope this helps someone.

Re: Using cashback as part of monthly payment?

Anonymous — Mon, 16 Sep 2019 01:52:33 GMT

@DaveInAZ wrote:
Yes, if you're paying your statement balance in full you can use your cashback credit as part of the payment, I do that regularly on a number of cards. Even American Express which states clearly that you cannot use a cashback credit for any part of your minimum payment due has no problem with using it as part of your payment when paying your statement balance in full.

Yeah, its funny how they'll tell you that you cannot do something, then allow it. Once at a grocery store, sign said Visa and Mastercard only. Without thinking, I inserted my Amex Everyday in the chip reader, saw it was approved, and was handed a receipt. Then realized I used Amex and wasn't supposed to.

Re: Using cashback as part of monthly payment?

Kforce — Mon, 16 Sep 2019 02:03:15 GMT

@Anonymous wrote:
@DaveInAZ wrote:
Yes, if you're paying your statement balance in full you can use your cashback credit as part of the payment, I do that regularly on a number of cards. Even American Express which states clearly that you cannot use a cashback credit for any part of your minimum payment due has no problem with using it as part of your payment when paying your statement balance in full.
Yeah, its funny how they'll tell you that you cannot do something, then allow it. Once at a grocery store, sign said Visa and Mastercard only. Without thinking, I inserted my Amex Everyday in the chip reader, saw it was approved, and was handed a receipt. Then realized I used Amex and wasn't supposed to.

Be careful, the credit card police monitor this forum !

Re: Using cashback as part of monthly payment?

Anonymous — Mon, 16 Sep 2019 02:07:51 GMT

@Kforce wrote:
@Anonymous wrote:
@DaveInAZ wrote:
Yes, if you're paying your statement balance in full you can use your cashback credit as part of the payment, I do that regularly on a number of cards. Even American Express which states clearly that you cannot use a cashback credit for any part of your minimum payment due has no problem with using it as part of your payment when paying your statement balance in full.
Yeah, its funny how they'll tell you that you cannot do something, then allow it. Once at a grocery store, sign said Visa and Mastercard only. Without thinking, I inserted my Amex Everyday in the chip reader, saw it was approved, and was handed a receipt. Then realized I used Amex and wasn't supposed to.
Be careful, the credit card police monitor this forum !

Good! They will see some merchants "lie" with signs lol. I've tried it with another merchant and was told they don't take Amex.

Re: Using cashback as part of monthly payment?

Anonymous — Mon, 16 Sep 2019 07:22:06 GMT

@Anonymous wrote:
@Kforce wrote:
@Anonymous wrote:
@DaveInAZ wrote:
Yes, if you're paying your statement balance in full you can use your cashback credit as part of the payment, I do that regularly on a number of cards. Even American Express which states clearly that you cannot use a cashback credit for any part of your minimum payment due has no problem with using it as part of your payment when paying your statement balance in full.
Yeah, its funny how they'll tell you that you cannot do something, then allow it. Once at a grocery store, sign said Visa and Mastercard only. Without thinking, I inserted my Amex Everyday in the chip reader, saw it was approved, and was handed a receipt. Then realized I used Amex and wasn't supposed to.
Be careful, the credit card police monitor this forum !
Good! They will see some merchants "lie" with signs lol. I've tried it with another merchant and was told they don't take Amex.

They are not after the big fish, just individuals! Expect:

"So, let us recap, rmsy1234. By your own admission you read and understood the sign that American Express payments were not permitted, and yet, with deliberate and malicious aforethought, proceeded to attempt to pay with that very vehicle. No, I don't care that it was accepted, we are talking about your behavior. And now you tell us that you tried it again with a different merchant. Clearly a career criminal......"