@MikeyMagic Most banks aren't too keen on cycling and using a lot more credit than your limit by running it up full, making a payment and then doing the same again. Some banks will quickly shut your account down for that. Capital One generally is ok with making a few payments in a month but I wouldn't make a second payment until both the available credit available has been released and the payment has fully cleared whatever financial institution you made the payment from.
@BuckyB wrote:I really don't understand why they flag accounts for this. Especially these days when people are moving money OUT of checking accounts in favor of putting it in savings and money market accounts that have at least halfway decent interest rates. Often these "high yield" accounts are at other banks.
I have several checking accounts at different banks with a couple thousand in each so if I have a large credit card bill I pay that in 2-3 smaller amounts from these different banks. If I didn't, I'd have to move a large amount out of savings at different banks into one single account and THAT would probably cause some algorithm to freak out too!
The answer to your question was addressed in two previous posts. Part of it is anti-laundering and the other is fraud concerns. Cap1 is one of those lenders that credits available credit immediately once you pay it. You could easily max your card, issue a payment, then max your card again within minutes. Now imagine if someone did that 3 or 4 times back to back and all the payments bounced.
@Brian_Earl_Spilner wrote:The answer to your question was addressed in two previous posts. Part of it is anti-laundering and the other is fraud concerns. Cap1 is one of those lenders that credits available credit immediately once you pay it. You could easily max your card, issue a payment, then max your card again within minutes. Now imagine if someone did that 3 or 4 times back to back and all the payments bounced.
Interesting you used CapOne as an example; shortly after my Chapter 13 was discharged I opened a secured CapOne card with a $1,000 limit, the problem is my monthly credit card spend averages four times that, and when I tried to pay my card weekly, it seemed every other payment was held for upwards of 12 days due to their AML protocol. In the end I closed the card after less than 7-weeks and opened up a secured card with TDBank with a $5,000 limit.
@Horseshoez wrote:
@Brian_Earl_Spilner wrote:The answer to your question was addressed in two previous posts. Part of it is anti-laundering and the other is fraud concerns. Cap1 is one of those lenders that credits available credit immediately once you pay it. You could easily max your card, issue a payment, then max your card again within minutes. Now imagine if someone did that 3 or 4 times back to back and all the payments bounced.
Interesting you used CapOne as an example; shortly after my Chapter 13 was discharged I opened a secured CapOne card with a $1,000 limit, the problem is my monthly credit card spend averages four times that, and when I tried to pay my card weekly, it seemed every other payment was held for upwards of 12 days due to their AML protocol. In the end I closed the card after less than 7-weeks and opened up a secured card with TDBank with a $5,000 limit.
I used them because they were mentioned by OP. It's a common issue rebuilders that have high spend have with cap1. Issue comes up every 3-6 months.
@NoMoreE46 wrote:To answer the question, no- not really Bad.
As noted, there are issuers that may limit the number of payments per a certain period in order to thwart AML etc. The parameters to accept Y number of payments could also be profile dependent.
TD allows up to like 5 per month; more if you speak with CSR. Wells is 5 from outside accounts but more if the payment is coming from within a WF acct. I will get a notice from Disco about a payment credit delay if I pay more than one time within like two or three days. However, there has never been a noticeable delay.
In my case, I never had an issue with multiple payments to Capital One. Furthermore, I am able to Overpay my balance by about 10%...
@Brian_Earl_Spilner wrote:
@Horseshoez wrote:
@Brian_Earl_Spilner wrote:The answer to your question was addressed in two previous posts. Part of it is anti-laundering and the other is fraud concerns. Cap1 is one of those lenders that credits available credit immediately once you pay it. You could easily max your card, issue a payment, then max your card again within minutes. Now imagine if someone did that 3 or 4 times back to back and all the payments bounced.
Interesting you used CapOne as an example; shortly after my Chapter 13 was discharged I opened a secured CapOne card with a $1,000 limit, the problem is my monthly credit card spend averages four times that, and when I tried to pay my card weekly, it seemed every other payment was held for upwards of 12 days due to their AML protocol. In the end I closed the card after less than 7-weeks and opened up a secured card with TDBank with a $5,000 limit.
I used them because they were mentioned by OP. It's a common issue rebuilders that have high spend have with cap1. Issue comes up every 3-6 months.
Everyone can overpay by 10% to cover trailing interest. If it doesn't get resolved cap1 will bring the account back to 0 and send the overage back as a check at some point. I've made multiple payments to them with no issue also. I've only had a payment held for like 10 days maybe once in like 20 years of having cap1 cards. It appears it's just a timing issue based off the previous payment. I've recommended on here multiple times to cycle those bucketed cards 3 times in a month for 3 months and they'll get their increase. I did it multiple times on multiple cards.
@Brian_Earl_Spilner wrote:
@BuckyB wrote:I really don't understand why they flag accounts for this. Especially these days when people are moving money OUT of checking accounts in favor of putting it in savings and money market accounts that have at least halfway decent interest rates. Often these "high yield" accounts are at other banks.
I have several checking accounts at different banks with a couple thousand in each so if I have a large credit card bill I pay that in 2-3 smaller amounts from these different banks. If I didn't, I'd have to move a large amount out of savings at different banks into one single account and THAT would probably cause some algorithm to freak out too!
The answer to your question was addressed in two previous posts. Part of it is anti-laundering and the other is fraud concerns. Cap1 is one of those lenders that credits available credit immediately once you pay it. You could easily max your card, issue a payment, then max your card again within minutes. Now imagine if someone did that 3 or 4 times back to back and all the payments bounced.
Cap1 has a limit on credit available upon payments. I believe it's two within a billing cycle. On your 3rd payment it will take 2-5 business days to clear.
