Funding a checking account with a CC for min spend?

[Anonymous]

I opened a Citi Premier last week with the 50k TY points for $4k spend SUB. A week later, I opened a checking account with Pelican State CU in Louisiana (Kasasa Cash 4.01% on up to $7.5k!). I used my Premier for initial funding of the checking account which I did for $500. The charge went through, I actually was contacted by Citi to verify the activity. My question is: will this definitely count toward my minimum spend, or might they try to pull the rug out from under me on this one?

[SouthJamaica]

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@Anonymous wrote:
I opened a Citi Premier last week with the 50k TY points for $4k spend SUB. A week later, I opened a checking account with Pelican State CU in Louisiana (Kasasa Cash 4.01% on up to $7.5k!). I used my Premier for initial funding of the checking account which I did for $500. The charge went through, I actually was contacted by Citi to verify the activity. My question is: will this definitely count toward my minimum spend, or might they try to pull the rug out from under me on this one?

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No it might not count as spend at all; might be coded as a cash advance.

[Anonymous]

Good point - although based on what the charge posting looks like I can't tell a difference between it and regular charges, and I'd rather not bring unneeded attention to the issue from Citi.

I'll hit the $4k spend and see if it trips the bonus. But if I get the points can they do a clawback cuz of the nature of that $500 transaction? How often does Citi do things like that?

[Gmood1]

Citi is very lenient compared to other lenders.

You would be charged a fee if it were coded as a cash advance. I've done it multiple times. I've only had one account opening that posted as a cash advance. 

Citi is one of the few lenders that will allow you to use Plastiq without frowning on the charges.

The MasterCard network isn't as stringent as Visa.

[wasCB14]

Pelican is a pretty obscure CU. "Pelican" produces few search results on MF (several which are your posts) and it's not on the DoC database (which has hundreds of banks and CUs). You might not get a clear answer here.

With no datapoints to say it will count as minimum spend, you should assume it won't count and meet your spend target without it. It could also be treated as a cash advance.

I'm not sure if it's relevant, but in Feb 2016 Citi stopped allowing customers to use a CC to fund a new Citi account.

[Anonymous]

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@SouthJamaica wrote:

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@Anonymous wrote:
I opened a Citi Premier last week with the 50k TY points for $4k spend SUB. A week later, I opened a checking account with Pelican State CU in Louisiana (Kasasa Cash 4.01% on up to $7.5k!). I used my Premier for initial funding of the checking account which I did for $500. The charge went through, I actually was contacted by Citi to verify the activity. My question is: will this definitely count toward my minimum spend, or might they try to pull the rug out from under me on this one?

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No it might not count as spend at all; might be coded as a cash advance.

 d

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Not likely.  Almost all of funding bank accounts counts as regular spend and not as a cash advance.  Doctor of Credit has a huge ongoing thread about funding new bank accounts with CCs and few if any ever code as a  cash advance.  From data points Citi, while not allowing you to fund their own bank accounts with CCs almost always codes funding other accounts as a purchase

[longtimelurker]

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@Anonymous wrote:

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@SouthJamaica wrote:

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@Anonymous wrote:
I opened a Citi Premier last week with the 50k TY points for $4k spend SUB. A week later, I opened a checking account with Pelican State CU in Louisiana (Kasasa Cash 4.01% on up to $7.5k!). I used my Premier for initial funding of the checking account which I did for $500. The charge went through, I actually was contacted by Citi to verify the activity. My question is: will this definitely count toward my minimum spend, or might they try to pull the rug out from under me on this one?

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No it might not count as spend at all; might be coded as a cash advance.

 d

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Not likely.  Almost all of funding bank accounts counts as regular spend and not as a cash advance.  Doctor of Credit has a huge ongoing thread about funding new bank accounts with CCs and few if any ever code as a  cash advance.  From data points Citi, while not allowing you to fund their own bank accounts with CCs almost always codes funding other accounts as a purchase

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I think it's a little more mixed than that, several places where there are reports of coding as cash advance.   As the article warns, these are just data points and no guarantee.   Most important is the advice at the beginning (for those doing this), set the cash advance limit to $0 or as low as possible.

Even for Citi, on one (random) CU,  we have 3 reports of the AA Plat coding as purchase, one with the Double Cash coding as purchase, and then the Premier being a cash advance.   And on another CU, DC codes as cash advance.  

[Anonymous]

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@longtimelurker wrote:

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@Anonymous wrote:

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@SouthJamaica wrote:

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@Anonymous wrote:
I opened a Citi Premier last week with the 50k TY points for $4k spend SUB. A week later, I opened a checking account with Pelican State CU in Louisiana (Kasasa Cash 4.01% on up to $7.5k!). I used my Premier for initial funding of the checking account which I did for $500. The charge went through, I actually was contacted by Citi to verify the activity. My question is: will this definitely count toward my minimum spend, or might they try to pull the rug out from under me on this one?

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No it might not count as spend at all; might be coded as a cash advance.

 d

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Not likely.  Almost all of funding bank accounts counts as regular spend and not as a cash advance.  Doctor of Credit has a huge ongoing thread about funding new bank accounts with CCs and few if any ever code as a  cash advance.  From data points Citi, while not allowing you to fund their own bank accounts with CCs almost always codes funding other accounts as a purchase

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I think it's a little more mixed than that, several places where there are reports of coding as cash advance.   As the article warns, these are just data points and no guarantee.   Most important is the advice at the beginning (for those doing this), set the cash advance limit to $0 or as low as possible.

Even for Citi, on one (random) CU,  we have 3 reports of the AA Plat coding as purchase, one with the Double Cash coding as purchase, and then the Premier being a cash advance.   And on another CU, DC codes as cash advance.  

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Good points.  Particularly about always setting your cash advance limit as $0