Cautionary note re: PayPal Cashback MasterCard

[NYC_Fella]

I made an online payment of $11K on November 1 to bring my balance down to zero. Now I am being told that there is a hold on the payment which will be released on November 17 because it was an "out-of-character" payment. My balance is now zero but my available credit is just a few hundred dollars although I have a $12K limit.

Their explanation makes no sense because last month I made a PIF payment of ~$10K with no issues.

I have no immediate need to use the card, but it's annoying nonetheless.

[JoeRockhead]

I would agree that a two week hold on a payment seems to be overkill in regards to what they have a right to do as holding for a "reasonable" length of time considering modern technology and all with transfers etc... Very much the same as a bank doing the same thing on a deposit outside that of what they consider "normal" for the account.... The good news is that it will most likely clear much sooner than the stated two weeks and you'll see your limit come back sooner rather than later. Hopefully, if you continue this trend, they'll likely lift, or ease the restrictions.  

[FireMedic1]

It will clear before then. Disco holds payments if too many are paid in a cycle. They say one thing and it pops a day or 2 later.

[NoMoreE46]

Yes quite an inconvienience.  Maybe this 2nd large PIF triggered the review. 

Prior to the $10,000, has your spend been in this dollar range?

[youngandcreditwrthy]

that sucks. 5% interest (what I get in savings) on 11,000 in two weeks is roughly $20 of free money OP is losing. 

Wonder what their payment patten was before the two large payments?

I try to warn ppl about this stuff. ease into making large payments so you aren't an outlier

[shelbytruck]

Hi OP.  If you search for my posts you will see I posted almost the exact same situation about a month ago.  They are simply outrageous in their length of hold when they know full well the money is good and you are not going to be able to take it back (which I suppose is their explanation for the two week hold).  But it's 2023, that money was good and gone from you the day after they got it.  EIther their systems stink and they can't tell good money (i.e pushed payments ACH'd to their accounts overnight) from bad (like a 1960 check writing scheme that might unravel) or the cynic in me tells me they want to reduce our abiltiy to use their card when they see people getting so much in rewards because they use the card a lot, pay it down, use it, pay it down etc...My soultion was to suck it up and give up on the 3% they offer for the time they are holding my payment and revert back to 2.62 from my B of A unlimited cash rewards card.

[NYC_Fella]

Thanks for all the responses. Actually I had hardly used the card since getting it but wanted it to see some action so I charged a bunch of stuff and then did the two PIFs a month apart, both in the $10K range. It just seemed strange that the second one was the one that triiggered the long hold time.

I'm so used to paying my Amex cards where even larger payments clear within minutes. Same with Wells Fargo. Barclays takes maybe 24 hours.

[NoMoreE46]

Thanks for lending weight to my guess.    Going from $0 to $$,$$$ two months in row even with PIF probably flagged SAR.  Guessing Sync ain't used to this kind of "action" like the other FI you mentioned.  

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@NYC_Fella wrote:

Thanks for all the responses. Actually I had hardly used the card since getting it but wanted it to see some action so I charged a bunch of stuff and then did the two PIFs a month apart, both in the $10K range. It just seemed strange that the second one was the one that triiggered the long hold time.

I'm so used to paying my Amex cards where even larger payments clear within minutes. Same with Wells Fargo. Barclays takes maybe 24 hours.

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[youngandcreditwrthy]

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@NYC_Fella wrote:

Thanks for all the responses. Actually I had hardly used the card since getting it but wanted it to see some action so I charged a bunch of stuff and then did the two PIFs a month apart, both in the $10K range. It just seemed strange that the second one was the one that triiggered the long hold time.

I'm so used to paying my Amex cards where even larger payments clear within minutes. Same with Wells Fargo. Barclays takes maybe 24 hours.

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from time to time, the banks will put holds on payments larger than 1000. Barclay's put a hold on a payment for around 6000 for me about ten years ago.. I had been carrying a balance from one of their 3.99% check offers and paid it all off before they could charge me higher interest. It's almost as if they do that on purpose lol. Just remember.. they ARE making interest/ROI while they have YOUR money on hold.

[FireMedic1]

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@NYC_Fella wrote:

Thanks for all the responses. Actually I had hardly used the card since getting it but wanted it to see some action so I charged a bunch of stuff and then did the two PIFs a month apart, both in the $10K range. It just seemed strange that the second one was the one that triiggered the long hold time.

I'm so used to paying my Amex cards where even larger payments clear within minutes. Same with Wells Fargo. Barclays takes maybe 24 hours.

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@NYC_FellaNow that you say that. Theres another poster. I can't remeber where very recently they went thru just about the same thing to a tee. Practically the same amounts also. So your not alone.