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Is this legal?

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Valued Member

Is this legal?

So I wanted to share this story because I thought it was funny.

 

I was talking to a co-worker about how I was mad at Barclays because they wouldn't give me a soft pull CLI on my uber visa card, even though I was spending 2 times the current credit limit since I was using the card as my daily driver. Anyway, I start thinking, I figure Barclays is probably taking a small loss on their highest earning category, fast food and resturants. So, since they don't want to give me a credit limit increase, I don't want to make them any money. I figure that at most, they are probably making 3% in interchange swipe fees, if I only use the card for food, they take a loss of a few pennies each transaction I make. I know its only pennies and Barclays doesn't care about me but I'm upset they wouldn't give me a soft pull CLI, so I will make them regret it 1 penny at a time. When i'm done telling this to my co-worker she asked me seriously, "is that legal?". I just laughed because I realized at least 1 person (proabably more) in this world belives that if you are attempting to screw over a bank its actually illegal. What do you guys think? Have you experienced something similar?

 

Below is a link to Visa Interchange Reimbersment Fees, based on page 10 I think my estimate was about right, let me know if i'm wrong

 

https://usa.visa.com/dam/VCOM/download/merchants/visa-usa-interchange-reimbursement-fees.pdf

 

 

Message 1 of 7
6 REPLIES 6
Community Leader
Senior Contributor

Re: Is this legal?

For me, my CCs are a convenience where I have 25-30 days to use their money at no charge, and I earn cash back or rewards that the cards offer. The last thing I care about is what swipe fees a bank earns. 

 

Oh, the the story was about the coworker thinking screwing over a bank was illegal. That’s a new one for me. In my circle, people are shocked that I can actually earn money or rewards just from using my cards. 

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Message 2 of 7
Valued Contributor

Re: Is this legal?


@hernaemm90 wrote:

So I wanted to share this story because I thought it was funny.

 

I was talking to a co-worker about how I was mad at Barclays because they wouldn't give me a soft pull CLI on my uber visa card, even though I was spending 2 times the current credit limit since I was using the card as my daily driver. Anyway, I start thinking, I figure Barclays is probably taking a small loss on their highest earning category, fast food and resturants. So, since they don't want to give me a credit limit increase, I don't want to make them any money. I figure that at most, they are probably making 3% in interchange swipe fees, if I only use the card for food, they take a loss of a few pennies each transaction I make. I know its only pennies and Barclays doesn't care about me but I'm upset they wouldn't give me a soft pull CLI, so I will make them regret it 1 penny at a time. When i'm done telling this to my co-worker she asked me seriously, "is that legal?". I just laughed because I realized at least 1 person (proabably more) in this world belives that if you are attempting to screw over a bank its actually illegal. What do you guys think? Have you experienced something similar?

 

Below is a link to Visa Interchange Reimbersment Fees, based on page 10 I think my estimate was about right, let me know if i'm wrong

 

https://usa.visa.com/dam/VCOM/download/merchants/visa-usa-interchange-reimbursement-fees.pdf

 

 


It's not illegal to only use a card for certain categories. If it was, Chase would have taken my CSR away a long time ago.

 

The only person being hurt in this situation is you. Not only are you not hurting Barclays with this tactic, you're actually helping them. They don't offer 4% cashback on dining because it hurts them, even if it might cost them a penny a transaction. The information they mine from you is far more valuable.

Message 3 of 7
Valued Member

Re: Is this legal?



It's not illegal to only use a card for certain categories. If it was, Chase would have taken my CSR away a long time ago.

 

The only person being hurt in this situation is you. Not only are you not hurting Barclays with this tactic, you're actually helping them. They don't offer 4% cashback on dining because it hurts them, even if it might cost them a penny a transaction. The information they mine from you is far more valuable.


You're right, I forgot about them collecting data. Oh well, i'm still only going to use it for that one category

Message 4 of 7
Senior Contributor

Re: Is this legal?


@hernaemm90 wrote:


It's not illegal to only use a card for certain categories. If it was, Chase would have taken my CSR away a long time ago.

 

The only person being hurt in this situation is you. Not only are you not hurting Barclays with this tactic, you're actually helping them. They don't offer 4% cashback on dining because it hurts them, even if it might cost them a penny a transaction. The information they mine from you is far more valuable.


You're right, I forgot about them collecting data. Oh well, i'm still only going to use it for that one category


Other than meeting my SUB my Uber Visa will be used for Dining (except Disco 5% quarter), and travel @ 3%, and my online subscriptions @2%.   The only reason the 2% is there is that it is the same as my Citi DC and as long as I hit my spend of 5K this year (that is questionable if it will happen or not)  I will get the Subscription credit.

 

My Ducks Unlimited card will only see Gas purchases at 5% back.

 

I use my cards where it is most advantages to me. 


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Message 5 of 7
Regular Contributor

Re: Is this legal?

That's what the card was made for. It use to be my daily card for restaurants but that changed since I got the Gold AMEX. I usually use it for some restaurants where AMEX isn't accepted and that's about it.

 

I also  pick up the tab and let people Venmo me. It's not really mis-using the card. With the interest rate they're also expecting people to not PIF. 

 

As long as you have the right strategy, you'll be fine. Remember MF'ers are such a small % of the actual CC users, most don't know any better.

 





Message 6 of 7
Senior Contributor

Re: Is this legal?

Barclays is known for their unique actions. For that reason we do not have a Barclays card. 

 

As far as cards go. At the backwoods house and business we have cards that give reewards for almost any specific purchase.

Grocery 6% Gas 5% utility 5% Fast Food 5% Table cloth dining  3%   whole list specific shops 8% to 3%   Misc we have 2% and 1.5%

 

For biz we get anywhere from 5% to 1.5% back.

 

It can be fun when to cash back hits a large amount.   

 

 

 

Message 7 of 7
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