What keeps people from doing this?

[carlosjgg]

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@FixMyCredit1992 wrote:

Oddly enough, I noticed in line at the local store, someone bought a money order, and pulled out their amex.

This store takes credit cards for money orders, which is odd as many don't.

CC's charge a ton for cash advances, and interest usually starts the second you do it.

So what keeps someone from buying a $2,000 money order, cashing it at their bank, PIF before the due date, and essentially giving themselves a 20-30 day interest free loan?

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you said it your self, creditcars charge interest on cash advances the minute you do it, so their is no 20 -30 day interest free loan. and if you do that often the issuer wll think you are doing ms and close your account.

[keithB]

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@Anonymous wrote:

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@keithB wrote:

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Possibly, but they really do exist.   At least in some areas, some Asian grocery stores offer this

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Ya, and they charge 10% or more... And I highly doubt they'll do $2000. If you need a loan so badly that you are willing to pay 10% a month for then good luck to ya.

[Anonymous]

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@trumpet-205 wrote:

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@Anonymous wrote:

Right, nothing prevents this unless the store is doing level 3 reporting, which it probably isn't.   There are reports of such stores on FlyerTalk, the names being jealously guarded as too many people doing this would cause a rethink!

But a lot of MS is basically the same, just less direct, having to buy stuff that can be coverted into money orders.

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You don't need level 3 reporting to flag a transaction as cash advance. Simple MCC/Category that codes itself as cash equivalent purchase will do the job.

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Right, but the point is that this would code as a grocery purchase, and without level 3, indistinguishable from buying a bunch of "real groceries"

[Anonymous]

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@keithB wrote:

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@Anonymous wrote:

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@keithB wrote:

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Possibly, but they really do exist.   At least in some areas, some Asian grocery stores offer this

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Ya, and they charge 10% or more... And I highly doubt they'll do $2000. If you need a loan so badly that you are willing to pay 10% a month for then good luck to ya.

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Well, no.  2%.   And if you have a 5% grocery card..... which is why people do it.

[weehoo]

Hoping level 3 does not become the standard in the future.

All i could find about this was similar statements to this:

Level III Card Data is line item detail similar to the information on an itemized invoice, and can only be submitted via specialized payment applications. Only merchants doing business with large government and institutional cardholders should consider submitting Level 3 Card Data.

[Anonymous]

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@weehoo wrote:

Hoping level 3 does not become the standard in the future.

All i could find about this was similar statements to this:

Level III Card Data is line item detail similar to the information on an itemized invoice, and can only be submitted via specialized payment applications. Only merchants doing business with large government and institutional cardholders should consider submitting Level 3 Card Data.

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Very recent thread with some stores named in addtion to staples:  

http://ficoforums.myfico.com/t5/Credit-Cards/Amex-shows-me-what-I-bought/m-p/3395341#M941618

[Anonymous]

My co worker and me were talking about this today ha thats funny 

[weehoo]

Dont mean to thread hijack.  But i did look through my amex to see what was level 3.  

Sears, RockAuto, and Macy's =0.  This isn't good.

[thelethargicage]

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@keithB wrote:

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Hehe, I just saw OP get skewered on another forum.

[Burned2manybridgesB4]

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@thelethargicage wrote:

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@keithB wrote:

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Hehe, I just saw OP get skewered on another forum.

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