cancel
Showing results for 
Search instead for 
Did you mean: 

What happens if a single purchase puts you over the CFF Bonus limits

tag
simplynoir
Community Leader
Mega Contributor

Re: What happens if a single purchase puts you over the CFF Bonus limits


@Remedios wrote:

@longtimelurker wrote:

@Remedios wrote:

I want to marry Pay Pal Key.

Not sure how Optimus Prime would feel about it, but that's my wish. 


I suggest trying to be a little less impulsive (but it's progress that you are not considering offering a kidney).  Give the relationship some time before jumping into marriage, I wouldn't be at all surprised if we see Paypal Key becoming a lot less generous, and possibly controlling exactly who you can partner with....


 

You're so critical of me I might as well marry you then offer my left kidney to divorce attorney. 

 

On a more serious side (not that eMarriages aren't), do you really think paypal will become more restrictive with the use of paypal key and why?

 

 


The way I see it it's not so much Paypal themselves that will make it more restrictive but more really on how merchants and the credit card companies will deal with it. There were already some datapoints on the DoC article when the PPK feature was first introduced that there were a few merchants/processors verified as not working; believe trying to pay taxes to the government are showing an equal amoutn of declines and approvals at this point. How other companies/banks view this is going to be interesting moving forward

 

Two examples of this are privacy.com and Plastiq. With privacy.com it acts pretty much like PPK where you can have a virtual card number to use (you can even use alt addresses and names I believe which is wild to me) and even set limits on the card so that way merchants that do auto-debits like Netflix and Amazon will not be able to take out more than what the set limit is. From what I can tell this service works the same as it did years ago with some hiccups. With Plastiq when it was first introduced years ago pretty much any network could take advtange whether it was paying your mortgage, car payments, tutition and so. Nowadays there are restrictions on what you can pay, with what card, and even the bank themselves if they'll allow it to begin with. Considering the mass savings here I imagine Plastiq will starting putting flags on any PPK transactions before too long

Message 11 of 19
longtimelurker
Epic Contributor

Re: What happens if a single purchase puts you over the CFF Bonus limits


@simplynoir wrote:

@Remedios wrote:

@longtimelurker wrote:

@Remedios wrote:

I want to marry Pay Pal Key.

Not sure how Optimus Prime would feel about it, but that's my wish. 


I suggest trying to be a little less impulsive (but it's progress that you are not considering offering a kidney).  Give the relationship some time before jumping into marriage, I wouldn't be at all surprised if we see Paypal Key becoming a lot less generous, and possibly controlling exactly who you can partner with....


 

You're so critical of me I might as well marry you then offer my left kidney to divorce attorney. 

 

On a more serious side (not that eMarriages aren't), do you really think paypal will become more restrictive with the use of paypal key and why?

 

 


The way I see it it's not so much Paypal themselves that will make it more restrictive but more really on how merchants and the credit card companies will deal with it. There were already some datapoints on the DoC article when the PPK feature was first introduced that there were a few merchants/processors verified as not working; believe trying to pay taxes to the government are showing an equal amoutn of declines and approvals at this point. How other companies/banks view this is going to be interesting moving forward

 

Two examples of this are privacy.com and Plastiq. With privacy.com it acts pretty much like PPK where you can have a virtual card number to use (you can even use alt addresses and names I believe which is wild to me) and even set limits on the card so that way merchants that do auto-debits like Netflix and Amazon will not be able to take out more than what the set limit is. From what I can tell this service works the same as it did years ago with some hiccups. With Plastiq when it was first introduced years ago pretty much any network could take advtange whether it was paying your mortgage, car payments, tutition and so. Nowadays there are restrictions on what you can pay, with what card, and even the bank themselves if they'll allow it to begin with. Considering the mass savings here I imagine Plastiq will starting putting flags on any PPK transactions before too long


I don't know how the finances work behind the scenes, but on the face of it would appear:

1) You pay the merchant using PPK.   This is a debit card transaction, and so generates a small debit card transaction fee from the merchant, and some fraction of that goes to Paypal.

2) Paypal somehow charges the linked credit card.    If paypal is acting as the merchant here, it would have to pay a larger credit card transaction fee.    

 

That would appear to be a money loser, because even if the user doesn't PIF, the interest goes to the used credit card issuer, not Paypal.

Which implies either it is bound to be short-lived or, more likely, 1and 2 above are not right/the whole story.

 

But my original comment was based on the history of the PP Business debit being linked to PP Cash Back MC, earning 3%, which didn't last long

Message 12 of 19
simplynoir
Community Leader
Mega Contributor

Re: What happens if a single purchase puts you over the CFF Bonus limits


@longtimelurker wrote:

@simplynoir wrote:

@Remedios wrote:

@longtimelurker wrote:

@Remedios wrote:

I want to marry Pay Pal Key.

Not sure how Optimus Prime would feel about it, but that's my wish. 


I suggest trying to be a little less impulsive (but it's progress that you are not considering offering a kidney).  Give the relationship some time before jumping into marriage, I wouldn't be at all surprised if we see Paypal Key becoming a lot less generous, and possibly controlling exactly who you can partner with....


 

You're so critical of me I might as well marry you then offer my left kidney to divorce attorney. 

 

On a more serious side (not that eMarriages aren't), do you really think paypal will become more restrictive with the use of paypal key and why?

 

 


The way I see it it's not so much Paypal themselves that will make it more restrictive but more really on how merchants and the credit card companies will deal with it. There were already some datapoints on the DoC article when the PPK feature was first introduced that there were a few merchants/processors verified as not working; believe trying to pay taxes to the government are showing an equal amoutn of declines and approvals at this point. How other companies/banks view this is going to be interesting moving forward

 

Two examples of this are privacy.com and Plastiq. With privacy.com it acts pretty much like PPK where you can have a virtual card number to use (you can even use alt addresses and names I believe which is wild to me) and even set limits on the card so that way merchants that do auto-debits like Netflix and Amazon will not be able to take out more than what the set limit is. From what I can tell this service works the same as it did years ago with some hiccups. With Plastiq when it was first introduced years ago pretty much any network could take advtange whether it was paying your mortgage, car payments, tutition and so. Nowadays there are restrictions on what you can pay, with what card, and even the bank themselves if they'll allow it to begin with. Considering the mass savings here I imagine Plastiq will starting putting flags on any PPK transactions before too long


I don't know how the finances work behind the scenes, but on the face of it would appear:

1) You pay the merchant using PPK.   This is a debit card transaction, and so generates a small debit card transaction fee from the merchant, and some fraction of that goes to Paypal.

2) Paypal somehow charges the linked credit card.    If paypal is acting as the merchant here, it would have to pay a larger credit card transaction fee.    

 

That would appear to be a money loser, because even if the user doesn't PIF, the interest goes to the used credit card issuer, not Paypal.

Which implies either it is bound to be short-lived or, more likely, 1and 2 above are not right/the whole story.

 

But my original comment was based on the history of the PP Business debit being linked to PP Cash Back MC, earning 3%, which didn't last long


To me the fact that Paypal acts as the intermediary for the customer and bank therefore collects ALL that information must be a gold mine in itself. Reminds me a lot of the Uber credit card by Barclays when it was first introduced; it is no longer open to apps but the data they mined from it was worth eating the loss that the card caused especially in Barclays case if Uber paid the awards that came with the card. In the case of Paypal they can now tell their advertisers which customers to target for their offers and reap the rewards from that. Not to mention if this is your first time using Paypal they can push other services to the individual such as their credit cards

Message 13 of 19
SunriseEarth
Moderator Emeritus

Re: What happens if a single purchase puts you over the CFF Bonus limits

The caps are based on dollar amounts, not the purchase.   So only the portion of the purchase that exceeded your cap would have reduced cash back.  



Start: 619 (TU08, 9/2013) | Current: 809 (TU08, 3/05/24)
BofA CCR WMC $75000 | AMEX Cash Magnet $64000 | Discover IT $46000 | Disney Premier VS $43600 | Venmo VS $30000 | NFCU More Rewards AMEX $25000 | Macy's AMEX $25000 Store $25000 | Cash+ VS $25000 | Altitude Go VS $25000 | Synchrony Premier $24,200 | Sony Card VS $23750 | GS Apple Card WEMC $22000 | WF Active Cash VS $18,000 | Jared Gold Card $16000 | FNBO Evergreen VS $15000 | Citi Custom Cash MC $14600 | Target MC $14500 | BMO Harris Cash Back MC $14000 | Amazon VS $12000 | Freedom Flex WEMC $10000 | Belk MC $10000 | Wayfair MC $4500 ~~
Message 14 of 19
Loquat
Moderator Emeritus

Re: What happens if a single purchase puts you over the CFF Bonus limits

Something tells me that PPK will be altered in some way. I've read a number of sites over the past coupe of days where some folks are getting really creative and as such I can't imagine that it'll stay this way for long. I hope I'm wrong...
Message 15 of 19
MrT_521
Regular Contributor

Re: What happens if a single purchase puts you over the CFF Bonus limits


@Loquat wrote:
Something tells me that PPK will be altered in some way. I've read a number of sites over the past coupe of days where some folks are getting really creative and as such I can't imagine that it'll stay this way for long. I hope I'm wrong...

On Reddit's r/CreditCards sub there are reports of people using PPK in stores by manually entering the number. Success is hit or miss, but there are successes.

 

I had it for my default payment in Amazon until I realized my Discover card has a bonus 3% cash back until the middle of December. Yeah, I'll take 8%!

Personal Cards

Business Cards

Debit Cards

FICO 8 Scores (as of Dec 14, 2022)


Message 16 of 19
Anonymous
Not applicable

Re: What happens if a single purchase puts you over the CFF Bonus limits


@SecretAzure wrote:

@sxa001 wrote:

@Remedios wrote:

5% up to the cap, 1% on remaining amount 


Cool, so they do prorate?  If I already had earned 5% on $50 and then went and made a $2000 purchase I would earn 5% on $1450 of that $2000 purchase.

 

PayPal Key makes this too easy, I hope Discover and Chase do PayPal quarters again next year!  


I don't think I've ever been able to hit the cap before on Freedom until this year. PayPal Key has been amazing. I know $1500 may not seem like a lot to most but that's several months of disposable income for me. 


What exactly is this pay pal Key and how is it better?

Message 17 of 19
simplynoir
Community Leader
Mega Contributor

Re: What happens if a single purchase puts you over the CFF Bonus limits


@Anonymous wrote:

@SecretAzure wrote:

@sxa001 wrote:

@Remedios wrote:

5% up to the cap, 1% on remaining amount 


Cool, so they do prorate?  If I already had earned 5% on $50 and then went and made a $2000 purchase I would earn 5% on $1450 of that $2000 purchase.

 

PayPal Key makes this too easy, I hope Discover and Chase do PayPal quarters again next year!  


I don't think I've ever been able to hit the cap before on Freedom until this year. PayPal Key has been amazing. I know $1500 may not seem like a lot to most but that's several months of disposable income for me. 


What exactly is this pay pal Key and how is it better?


https://www.doctorofcredit.com/paypal-launches-virtual-card-numbers-for-use-anywhere-paypal-key/

Message 18 of 19
longtimelurker
Epic Contributor

Re: What happens if a single purchase puts you over the CFF Bonus limits


@simplynoir wrote:

$2000 purchase I would earn 5% on $1450 of that $2000 purchase.

 

PayPal Key makes this too easy, I hope Discover and Chase do PayPal quarters again next year!  


I don't think I've ever been able to hit the cap before on Freedom until this year. PayPal Key has been amazing. I know $1500 may not seem like a lot to most but that's several months of disposable income for me. 


What exactly is this pay pal Key and how is it better?


https://www.doctorofcredit.com/paypal-launches-virtual-card-numbers-for-use-anywhere-paypal-key/


And to summarize that in context of the discussion here:  paypal key allows you to link a virtual debit card to any credit card.   So if you have a card that is giving enhanced rewards on Paypal transactions (Discover last quarter, CF/CFF this) basically any online transaction that accepts credit cards can become a paypal transaction, earning the 5x rewards up to the cap.   So this adds a virtual "checkout with paypal" to sites that don't have one!

Message 19 of 19
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.