topic Re: Will Citi, Chase & US Bank have issues? Buying Gift Cards for SUBs in Credit Cards

Will Citi, Chase & US Bank have issues? Buying Gift Cards for SUBs

Anonymous — Sat, 10 Jul 2021 18:33:08 GMT

If I buy giftcards to meet their SUBS?

Re: Will Citi, Chase & US Bank have issues? Buying Gift Cards for SUBs

Anonymous — Sat, 10 Jul 2021 18:33:33 GMT

@Anonymous wrote:
If I buy giftcards to meet their SUBS?

Historically, US Bank has closed Altitude Reserve with people buying gift cards with mobile pay (That said, I did some in the UK without incident).

Small amounts, mixed in with other purchases, are generally OK with all. Putting down $3K at a place where you normally spend $10 is a bit more asking for trouble.

Re: Will Citi, Chase & US Bank have issues? Buying Gift Cards for SUBs

Aim_High — Mon, 12 Jul 2021 02:56:24 GMT

It may also depend on the retailer. I was limited in buying gift cards at two different Walgreen's recently when I was running up some extra spend on my GS Bank Apple card before asking for a CLI. On the one hand, it seemed they were trying to look out for scamming victims by asking if someone had asked me to buy gift cards from an online solicitation. But it also seemed they were concerned about fraud in some manner and were limiting the dollar amount of gift cards sold to one person in 24 hours. I was told it was a new corporate policy. I was surprised to run into this issue since it was just some gift cards I was legitimately buying in advance for gifts and/or for personal use at places like restaurants that I frequent.

Re: Will Citi, Chase & US Bank have issues? Buying Gift Cards for SUBs

GatorGuy — Mon, 12 Jul 2021 03:13:45 GMT

@Aim_High wrote:
It may also depend on the retailer. I was limited in buying gift cards at two different Walgreen's recently when I was running up some extra spend on my GS Bank Apple card before asking for a CLI. On the one hand, it seemed they were trying to look out for scamming victims by asking if someone had asked me to buy gift cards from an online solicitation. But it also seemed they were concerned about fraud in some manner and were limiting the dollar amount of gift cards sold to one person in 24 hours. I was told it was a new corporate policy. I was surprised to run into this issue since it was just some gift cards I was legitimately buying in advance for gifts and/or for personal use at places like restaurants that I frequent.

What was the dollar limit they imposed?

Re: Will Citi, Chase & US Bank have issues? Buying Gift Cards for SUBs

csryang — Mon, 12 Jul 2021 03:53:47 GMT

@Anonymous wrote:
If I buy giftcards to meet their SUBS?

From my experience, Chase and Citi would probably be fine. US bank would probably be ok as long as it's not altitude reserve with mobile pay. Just don't buy too many and mix in with other charges.

An easier way to meet SUB would be funding bank accounts if you won't have upcoming big charges. However, it would require some research as some banks do not allow CC funding and some Credit card company code certain banks as cash advance. Some datapoints here to research:

https://www.doctorofcredit.com/does-funding-a-bank-account-with-a-credit-card-count-as-a-purchase-or-cash-advance/

Other ways to meet SUB would be to pay quarterly taxes, pay rent... Etc

Re: Will Citi, Chase & US Bank have issues? Buying Gift Cards for SUBs

Anonymous — Mon, 12 Jul 2021 04:03:17 GMT

I work in banking and purchasing gift cards is always a red flag in the financial system due to scams, fraud and other types of situations. Navy Fed for example would run any charge to purchase a gift card as a cash advance so it would defeat the purpose.

Re: Will Citi, Chase & US Bank have issues? Buying Gift Cards for SUBs

Anonymous — Mon, 12 Jul 2021 05:07:47 GMT

@Anonymous wrote:
I work in banking and purchasing gift cards is always a red flag in the financial system due to scams, fraud and other types of situations. Navy Fed for example would run any charge to purchase a gift card as a cash advance so it would defeat the purpose.

Even if you bought a card at a supermarket that doesn't provide L3? How would they know!

Re: Will Citi, Chase & US Bank have issues? Buying Gift Cards for SUBs

Aim_High — Mon, 12 Jul 2021 14:45:59 GMT

@GatorGuy wrote:
@Aim_High wrote:
It may also depend on the retailer. I was limited in buying gift cards at two different Walgreen's recently ...
What was the dollar limit they imposed?

I believe the limit is supposed to be $500 per customer per day. Although if you come back later or go to another location, you may be able to bypass it. They definitely wouldn't let it all go through in a single transaction at either store. Or you could use two-player mode to get around it, I guess.

Re: Will Citi, Chase & US Bank have issues? Buying Gift Cards for SUBs

coldfusion — Mon, 12 Jul 2021 15:30:21 GMT

You need to tread a bit carefully as this was historically the first step taken in different variations of a shady practice that we don't discuss here and which issuers and vendors have over the last few years put policies in place to make the road to success more difficult. Buying gift cards when there is a SUB involved is something you want to do in moderation.

Citi and Chase have in the past been more tolerant that USBank but you'd risk attracting unwelcome attention if for example you picked up a CSP and then ran out to buy $4000 worth of gift cards.

Re: Will Citi, Chase & US Bank have issues? Buying Gift Cards for SUBs

Aim_High — Mon, 12 Jul 2021 15:52:59 GMT

@coldfusion wrote:
You need to tread a bit carefully as this was historically the first step taken in different variations of a shady practice that we don't discuss here and which issuers and vendors have over the last few years put policies in place to make the road to success more difficult. Buying gift cards when there is a SUB involved is something you want to do in moderation.

Citi and Chase have in the past been more tolerant that USBank but you'd risk attracting unwelcome attention if for example you picked up a CSP and then ran out to buy $4000 worth of gift cards.

+1. In my case, I was buying the gift cards for actual gifts or personal use, but I've heard about lenders being sensitive to gift cards in terms of potential abuses. As mentioned upthread, if purchased in moderation and mixed in with other purchases (like a normal and legitimate customer would probably do), there probably won't be an issue. Also, if you don't use a brand new card for normal swipes but run up excessive amount of gift cards, that would be a huge red flag.

Re: Will Citi, Chase & US Bank have issues? Buying Gift Cards for SUBs

randomguy1 — Mon, 12 Jul 2021 19:46:07 GMT

@Anonymous wrote:
If I buy giftcards to meet their SUBS?

It's better to pre/overpay bills. Utility companies that don't charge a CC fee, HOA, auto insurance, phone bill, etc.. Many insurers will give you a discount if you pay semi-annual or annually as opposed to monthly as well.

Re: Will Citi, Chase & US Bank have issues? Buying Gift Cards for SUBs

rgd51 — Mon, 12 Jul 2021 21:48:26 GMT

@Aim_High wrote:
@coldfusion wrote:
You need to tread a bit carefully as this was historically the first step taken in different variations of a shady practice that we don't discuss here and which issuers and vendors have over the last few years put policies in place to make the road to success more difficult. Buying gift cards when there is a SUB involved is something you want to do in moderation.

Citi and Chase have in the past been more tolerant that USBank but you'd risk attracting unwelcome attention if for example you picked up a CSP and then ran out to buy $4000 worth of gift cards.
+1. In my case, I was buying the gift cards for actual gifts or personal use, but I've heard about lenders being sensitive to gift cards in terms of potential abuses. As mentioned upthread, if purchased in moderation and mixed in with other purchases (like a normal and legitimate customer would probably do), there probably won't be an issue. Also, if you don't use a brand new card for normal swipes but run up excessive amount of gift cards, that would be a huge red flag.

Why do lenders not like when you purchase gift cards? Can't see a reason why since credit cards are supposed to give cash back on all purchases.

Re: Will Citi, Chase & US Bank have issues? Buying Gift Cards for SUBs

coldfusion — Mon, 12 Jul 2021 23:42:05 GMT

@rgd51 wrote:
@Aim_High wrote:
@coldfusion wrote:
You need to tread a bit carefully as this was historically the first step taken in different variations of a shady practice that we don't discuss here and which issuers and vendors have over the last few years put policies in place to make the road to success more difficult. Buying gift cards when there is a SUB involved is something you want to do in moderation.

Citi and Chase have in the past been more tolerant that USBank but you'd risk attracting unwelcome attention if for example you picked up a CSP and then ran out to buy $4000 worth of gift cards.
+1. In my case, I was buying the gift cards for actual gifts or personal use, but I've heard about lenders being sensitive to gift cards in terms of potential abuses. As mentioned upthread, if purchased in moderation and mixed in with other purchases (like a normal and legitimate customer would probably do), there probably won't be an issue. Also, if you don't use a brand new card for normal swipes but run up excessive amount of gift cards, that would be a huge red flag.
Why do lenders not like when you purchase gift cards? Can't see a reason why since credit cards are supposed to give cash back on all purchases.

Cashback and sign up bonuses are the motivation behind the ethically suspect practices I alluded to in my previous post above.

Re: Will Citi, Chase & US Bank have issues? Buying Gift Cards for SUBs

Anonymous — Tue, 13 Jul 2021 02:01:56 GMT

@coldfusion wrote:
@rgd51 wrote:
Why do lenders not like when you purchase gift cards? Can't see a reason why since credit cards are supposed to give cash back on all purchases.
Cashback and sign up bonuses are the motivation behind the ethically suspect practices I alluded to in my previous post above.

And in particular, most cards now have a set of exclusions, purchases that won't give rewards, and these include the suspect practices @coldfusion refers

Re: Will Citi, Chase & US Bank have issues? Buying Gift Cards for SUBs

Remedios — Tue, 13 Jul 2021 02:47:25 GMT

Did I miss a memo where "cash equivalent" cannot be spelled?

Re: Will Citi, Chase & US Bank have issues? Buying Gift Cards for SUBs

Anonymous — Tue, 13 Jul 2021 21:59:50 GMT

@Remedios wrote:
Did I miss a memo where "cash equivalent" cannot be spelled?

Let me try!! C, um, A, C,H,E No, too hard.

Re: Will Citi, Chase & US Bank have issues? Buying Gift Cards for SUBs

Remedios — Tue, 13 Jul 2021 22:16:43 GMT

@Anonymous wrote:
@Remedios wrote:
Did I miss a memo where "cash equivalent" cannot be spelled?

Let me try!! C, um, A, C,H,E No, too hard.

This post is invalid without winky emoji.

Re: Will Citi, Chase & US Bank have issues? Buying Gift Cards for SUBs

FinStar — Tue, 13 Jul 2021 22:45:32 GMT

@Remedios wrote:
@Anonymous wrote:
@Remedios wrote:
Did I miss a memo where "cash equivalent" cannot be spelled?

Let me try!! C, um, A, C,H,E No, too hard.
This post is invalid without winky emoji.

But, I'm sure @Anonymous can reply with their own winky emoji.