PenFed To Crack Down On What Counts As A Cash Advance

According to myFICO user UpperNwGuy  has received a letter from PenFed stating  that effective March 1st, 2020 the following cash-like transactions will be treated like cash advances with no grace period and subject to cash advance APR:

  • Online transfers to a deposit account
  • Purchases of casino gaming instruments
  • Purchases of travelers checks
  • Race track wagers or similar
  • Purchases of money orders
  • Purchases of foreign currency
  • Purchases of lottery tickets
  • Purchases of cryptocurrency
  • Making a payment using a third party service
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29 Comments
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Aloha808
Aloha808 (@guest_853648)
December 5, 2019 14:54

Seems like they’re following navy federal’s lead, at least with regards to plastiq.

Jason
Jason (@guest_853571)
December 5, 2019 11:07

What does “Online transfers to a deposit account” mean? Does a transfer via ACH to an external bank account count? That seems unlikely, but not clear above.

anon
anon (@guest_853572)
December 5, 2019 11:14

There’s a reason for things not being clear. Those doing it will know. For the others, it doesn’t matter so much.

frogger
frogger (@guest_853533)
December 5, 2019 09:50

How come things like this only get mentioned on here when they are shut-down? Might have been useful to know the option to use this feature.

BW
BW (@guest_853535)
December 5, 2019 09:54

Because posting a play here is a sure fire way to kill it.

frogger
frogger (@guest_853565)
December 5, 2019 10:45
  BW

Well then how do I find out about them?

Jesse
Jesse (@guest_853619)
December 5, 2019 13:57

You don’t. They’re secret.

Geo
Geo (@guest_853679)
December 5, 2019 15:32

Get off your ass and experament with new plays & ideas on your own. Nothing gets handed out for free on sites like this until it’s walking dead.

slowbrake
slowbrake (@guest_853869)
December 5, 2019 21:42

Read, remember, and apply to new situations.

Example: 2 years ago prepaidian ran a couple of prepaid cards for a number of small things – like JNF and a Boys and Girls club. Everyone said they were garbage because credit card loads were cash advances. If those cards are still around, maybe now you have a card for free load until March of 2020.

If you want a chance at a unicorn than read every dead deal and ask two questions: 1 – what’s the general pattern, 2 – Have I tried that with my routine.

There’s still lot of opportunity here. Maybe theres a crypto hub with fees that make it profitable. The cruise angle. Maybe a casino+travel angle at airport slots or gas station poker machines. Maybe an airport currency exchange cart with narrow margins. A racetrac where you can hedge a race to even odds.

You have 3 months to find an angle and burn it into the ground.

Or if you want rewards with no risk/effort there are sign up bonuses and checking accounts.

gary
gary (@guest_853532)
December 5, 2019 09:45

maybe its for funding bank account openings with credit cards. i dont do that with penfed because i can get better options with other cards

anon
anon (@guest_853494)
December 5, 2019 07:00

Thanks for the heads up on this one. Was nice while it lasted.

Don
Don (@guest_853468)
December 5, 2019 01:43

What about paying people for services via Venmo and things like that?

Svy
Svy (@guest_853428)
December 4, 2019 22:34

I have 3 PENFED CCs. Thus far, I have only received the letter with respect to only the PENFED Defender AMEX, not the Pathfinder AMEX or the old Cash Visa, which I also have. The PENFED AMEX Cards had been capable of loading Serve cards and receiving cash back/points, which would appear to be now precluded as “online transfers to a deposit account.” The defender card is marketed primarily at active duty military, so a pretty narrow audience. Perhaps I will receive additional letters regarding the pathfinder AMEX and the Visa later this week….

aubergine
aubergine (@guest_853711)
December 5, 2019 16:16

i’m amazed serve lasted as long as it did

Dan - Legal Bank Robber
Dan - Legal Bank Robber (@guest_853422)
December 4, 2019 22:20

Some person was making a pretty penny if they are changing this. Wonder what method they were using.

YoniPDX
YoniPDX (@guest_853432)
December 4, 2019 22:53

IIRC some people would/could/can gamble on Caribbean cruises – some cruise ships allowed chips it to be billed to room and give you chips that could be cashed out (play a few hands or slots – then cash out) – in ports of call that had US Bank branches on foreign soil people would deposit the cash – rinse repeat – then returning to US declare cash as required.

Dan - Legal Bank Robber
Dan - Legal Bank Robber (@guest_853434)
December 4, 2019 22:56

Yeah, but thats not Penfed specific play, had to be some P2P or B2B that was coding as purchases maybe in a bonus category.

Sam
Sam (@guest_853444)
December 4, 2019 23:22

while i agree that it’s possible this card was being exploited with some kind of loophole like alliant was (with google pay and some other avenues im not going to mention), this post doesnt necessarily mean that’s the case

Rudi Pittman
Rudi Pittman (@guest_853421)
December 4, 2019 22:18

So then I can make my payments with used non winning lottery tickets because hey it’s considered CASH according to them.

Stan
Stan (@guest_853416)
December 4, 2019 22:12

so was it possible to just buy $2500 in money orders with the card to meet minimum spend requirement on Pathfinder?…

Jason
Jason (@guest_853436)
December 4, 2019 23:06

But where can you buy a money order with a credit card?

86
86 (@guest_853476)
December 5, 2019 02:51