Capital One Canceled Our Cards

[Aduke1122]

Wow I knew that buying Gc could cause issues with some lenders but just ONE GC that's crazy

[swpopham]

I don't know why you went back to capital one? You took 3,hard pulls to get that 2nd card. If you pay in full why not do a green Amex? Or discover card?

[fltireguy]

I strongly disagree with the GC reasoning

A merchant DOES NOT report itemized details of a MC/Visa purchase. It is simply a dollar amount. That's all. Dollar amount, date, time, merchant, etc.... CapOne had NO idea what that transaction entailed - the only possible exception being a few $250.00 transactions, etc... exact dollar amounts that could have possibly been a GC purchase, but, again, they have no way to verify

[Anonymous]

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@fltireguy wrote:
I strongly disagree with the GC reasoning

A merchant DOES NOT report itemized details of a MC/Visa purchase. It is simply a dollar amount. That's all. Dollar amount, date, time, merchant, etc.... CapOne had NO idea what that transaction entailed - the only possible exception being a few $250.00 transactions, etc... exact dollar amounts that could have possibly been a GC purchase, but, again, they have no way to verify

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That's not entirely true but discussing it at MyFico is strongly against the rules.  Let's just say there are third party "data mining" companies whose sole business is detecting these kinds of spends and reporting them to credit card providers.

[thummel]

It's not worth the hassle of trying to fight capital one on it. They clearly see something they don't like and if I was in that situation, there's plenty of other banks out there that will take the business.

[Anonymous]

Thanks for info. I had no clue.

[Anonymous]

Lesson learned - the hard way!

[NRB525]

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@Anonymous wrote:
Lesson learned - the hard way!

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Thanks for sharing OP. Sorry to hear about the closures, my experience with CapOne is much better, so I hope yours improves as well.

[Shooting-For-800]

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@Anonymous wrote:

Yep.  Gift cards will create AA with some lenders on new rewards accounts.  The fact that it was almost 50% of your spend on that purchase is what got you flagged.

They will take you back after 180 days in the naughty chair: http://www.doctorofcredit.com/saving-your-credit-cards-from-shutdown/#Capital_One

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I have spent thousands on gift cards using capital one and never had an issue.  Knock on wood.

[Anonymous]

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@Anonymous wrote:

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@fltireguy wrote:
I strongly disagree with the GC reasoning

A merchant DOES NOT report itemized details of a MC/Visa purchase. It is simply a dollar amount. That's all. Dollar amount, date, time, merchant, etc.... CapOne had NO idea what that transaction entailed - the only possible exception being a few $250.00 transactions, etc... exact dollar amounts that could have possibly been a GC purchase, but, again, they have no way to verify

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That's not entirely true but discussing it at MyFico is strongly against the rules.  Let's just say there are third party "data mining" companies whose sole business is detecting these kinds of spends and reporting them to credit card providers.

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You are correct, the credit card companies know exactly what you are buying and they have many ways of doing it.

1. MCC Codes classify everything by store type. And they classify everything it is just not an "Dollar amount, date, time, merchant, etc."

2. All reciept are electronically stored and OCR'd for the purpose of datamining so they know everything that is on your reciept. Do not believe me do a dispute and they will send you electronic copies of your exact reciept to prove to you it is a valid charge.

3. As far as gift cards though, if they are a VISA, MC, AMEX etc the transaction ID that paid for them is relayed with the activation of the gift card to be activated on the network.  So they can tell which and if a credit card was used to pay for it and also what gift card this purchase is tied to. How do you think if a stolen credit card is used they track down the gift cards and shut them down.  All this is tied together.