topic Re: Credit Card Usage Question Cash Advance or Not in General Credit Topics

Credit Card Usage Question Cash Advance or Not

Iusedtolurk — Thu, 01 Apr 2021 05:56:30 GMT

I realize there is NO DUMB QUESTIONS asked in the forum but if there was this could be an exception Anyway I was wondering if you used your CC to pay your taxes would that be considered a Cash Advance or a regular credit transaction?

I anticipate owing maybe a few hundred this year and wanted to use one of my credit cards once I file online this month or I could just wait until next month (May) and use my debit card.

Re: Credit Card Usage Question Cash Advance or Not

Jnbmom — Thu, 01 Apr 2021 07:04:57 GMT

@Iusedtolurk wrote:
I realize there is NO DUMB QUESTIONS asked in the forum but if there was this could be an exception Anyway I was wondering if you used your CC to pay your taxes would that be considered a Cash Advance or a regular credit transaction?

I anticipate owing maybe a few hundred this year and wanted to use one of my credit cards once I file online this month or I could just wait until next month (May) and use my debit card.

@Iusedtolurk

It's not considered a "cash advance" it's a purchase, but they do(IRS) charge a "fee" for using a credit card.

Re: Credit Card Usage Question Cash Advance or Not

Iusedtolurk — Thu, 01 Apr 2021 09:38:06 GMT

@Jnbmom wrote:
@Iusedtolurk wrote:
I realize there is NO DUMB QUESTIONS asked in the forum but if there was this could be an exception Anyway I was wondering if you used your CC to pay your taxes would that be considered a Cash Advance or a regular credit transaction?

I anticipate owing maybe a few hundred this year and wanted to use one of my credit cards once I file online this month or I could just wait until next month (May) and use my debit card.
@Iusedtolurk

It's not considered a "cash advance" it's a purchase, but they do(IRS) charge a "fee" for using a credit card.

@JnbmomGood to know! Thanks

Re: Credit Card Usage Question Cash Advance or Not

bettercreditguy1 — Thu, 01 Apr 2021 10:50:18 GMT

No, it's a standard transaction. Usually they will charge a convenience fee of 1-3%.

Re: Credit Card Usage Question Cash Advance or Not

4sallypat — Thu, 01 Apr 2021 13:28:30 GMT

Last year during the pandemic, I paid for my taxes using my Amex card for the MR points.

Last year was August 15, so that was nice.

This year, it's due May 17 so that's nice too....

Haven't decided which card to use but I figure I could use points or cash back since it codes as a regular online transaction.

Re: Credit Card Usage Question Cash Advance or Not

Horseshoez — Thu, 01 Apr 2021 14:04:19 GMT

@Iusedtolurk, I had to pay this year as well and initially thought to use one of my Rewards cards to make the payment, then I saw the fees the IRS charges and bagged that idea in a hurry; the fees are way higher than any rewards benefit. In the end I did a simple ACH to pay the tax.

Re: Credit Card Usage Question Cash Advance or Not

Iusedtolurk — Thu, 01 Apr 2021 14:36:09 GMT

@4sallypat wrote:
Last year during the pandemic, I paid for my taxes using my Amex card for the MR points.
Last year was August 15, so that was nice.

This year, it's due May 17 so that's nice too....
Haven't decided which card to use but I figure I could use points or cash back since it codes as a regular online transaction.

@4sallypatThat gave me a thought of getting cashback if I used a credit card until I read @Horseshoez post and noted the fees were greater than the cashback reward would be.

Too bad Disco doesn't include the IRS in one of their 5% back categories. Maybe I'll send them a suggestion.

Re: Credit Card Usage Question Cash Advance or Not

Anonymous — Thu, 01 Apr 2021 15:06:16 GMT

Chase added something to their terms that says that third party billing services may be considered a cash advance starting this month but it's unclear if that includes paying taxes through a third party. If it does, they would be the only issuer I know of that codes that way.

https://www.google.com/amp/s/www.doctorofcredit.com/chase-credit-cards-to-consider-cash-like-transactions-as-cash-advance-could-include-bank-funding/amp/

Re: Credit Card Usage Question Cash Advance or Not

SouthJamaica — Thu, 01 Apr 2021 20:42:35 GMT

@Iusedtolurk wrote:
I realize there is NO DUMB QUESTIONS asked in the forum but if there was this could be an exception Anyway I was wondering if you used your CC to pay your taxes would that be considered a Cash Advance or a regular credit transaction?

I anticipate owing maybe a few hundred this year and wanted to use one of my credit cards once I file online this month or I could just wait until next month (May) and use my debit card.

With most cards it would be considered a regular credit transaction.

But it's always possible that some lender might have it buried in their fine print that tax payments are an exception.

Re: Credit Card Usage Question Cash Advance or Not

Iusedtolurk — Thu, 01 Apr 2021 21:01:24 GMT

@SouthJamaica wrote:
@Iusedtolurk wrote:
I realize there is NO DUMB QUESTIONS asked in the forum but if there was this could be an exception Anyway I was wondering if you used your CC to pay your taxes would that be considered a Cash Advance or a regular credit transaction?

I anticipate owing maybe a few hundred this year and wanted to use one of my credit cards once I file online this month or I could just wait until next month (May) and use my debit card.
With most cards it would be considered a regular credit transaction.

But it's always possible that some lender might have it buried in their fine print that tax payments are an exception.

@SouthJamaicaYes the small print of the TOS that we all agree to after reading (yeah right).

We could all experience surprise what those TOS may actually contain like the one in AMAZON TOS...

Buried in section 57.10 of Amazon’s terms of service, about the acceptable safe use of lumberyard materials, the online marketplace has stashed a clause that negates the whole section should the Zombie Apocalypse take place. Of course, they have a broader legalese way of stipulating such an event:

“However, this restriction will not apply in the event of the occurrence (certified by the United States Centers for Disease Control or successor body) of a widespread viral infection transmitted via bites or contact with bodily fluids that causes human corpses to reanimate and seek to consume living human flesh, blood, brain or nerve tissue and is likely to result in the fall of organized civilization.”