SVM Gift Cards on eBay is Coding as Cash Advance…Again

Deja vu.

Since a couple of days ago, the SVM gift card seller on eBay purchases are getting coded as cash advance. Seems to be universal across all credit cards; we’ve seen data points on Visa, Amex, and Discover.

Update: SVM insists the issue was only for a few hours and has been fixed. Let’s hope that’s the case. Please contribute data points below.

They had this issues a few times before. Oddly, last time Amex did not code as cash advance while this time it appears thus far that they are, as shown in screenshot above.

Last time around, their merchant category coding got changed from “Services Not Elsewhere Classified” to “Prepaid and Stored.” It’s probably something similar this time as well. The new coding is coming through as a cash advance which has fees and doesn’t earn points.

You might want to leave them bad feedback to make them aware of the issue. Calling in could work too, but it takes them longer to find out that way. It’s worth noting that the issue seems to be a Paypal mistake, not an SVM mistake.

Also, if you did get hit with a cash advance fee, it could be a good idea to quickly pay down your balance in case it can’t be reversed. Otherwise, interest starts accruing immediately. We have one data point with Discover reversing the cash advance fee based on seeing prior transactions from SVM which weren’t cash advances.

For now, I’d advise against buying from SVM or just using Paypal and paying with your bank account or debit card.
    Chuck
  • On December 6, 2017, 11:40

View Comments (45)

  • On 12/12, SVM submitted a $20 credit back to the card that was charged the CA fee. I can see the history in my PayPal account.

  • If I pay off my balance completely and them start spending again before my next statement, should I be free and clear of any interest charges except the one day that the charge posted? Or, do I need to wait a full billing cycle before using this card again.

  • Thanks Chuck for your helpful, solid efforts on this. (and providing the links. :-) ) Interesting that SVM wants to lay blame/responsibility with paypal..... (reminds me of long trains of abuses with paypay/ebay where never mind their common parentage, reps for each oft' blame the other half...)

    Curious too that SVM tries to rebut your concerns by reference to the USPS..... Well actually, yes, if USPS would fail to deliver a package -- that indeed would be SVM's responsibility to make right..... (Ok, it wouldn't be SVM's "fault" -- but it IS their responsibility -- for having elected such a vulnerable method of shipping.....) I actually had one gc shipment from SVM waylayed a year ago -- lost by USPS..... To their credit, SVM was very good about sending me new ones..... Yet that issue of mail security and untracked first class delivery has long kept me awake at night. What exactly would be our recourse if someone unintended received my gc's from SVM -- and then chose to use them for themselves? (Those things ship "live" -- no separate pin envelopes, and no shipping tracking)

    This whole subject deserves a separate post & review - especially as the USPS groans under the massive Amazon load..... A lot of us here do considerable gift card re-selling with a much appreciated service that for the mortals among us, still uses snail mail..... That too, wakes me up at night -- wondering/worrying..... Yes, most of their checks come quick -- but I have two of them that I know of that were misdirected and arrived over a week+ later than expected.... Sure, that service says that they'll be happy to replace and re-send a check -- if we "give it time"..... But still.....

  • My BoA card coded it as cash advance.

    Emailed SVM to complain -- and will probably email BoA as well to ask about this issue

      • well i spoke with my contact there and supposedly they caught this one pretty quick. Like the previous message, supposedly if was a paypal related issue -- caught by ebay and they fixed in -- in an hour or 2.

        Of course I have an order on 12/5 on my fidelity card, I am keeping my eye out.

        Barclay refused to change the coding, but i'm going to try to speak with a supervisor later -- better to get $20 and the fee reversed :D

  • "We have one data point with Discover reversing the cash advance fee based on seeing prior transactions from SVM which weren’t cash advances."

    BA+ did this as well...

  • Is it possible that the codings have been changed again, and that PPDG is now coding as 5X and 3X? Any data points?

  • Purchased BP gas card on 11/27,

    Category:
    Merchandise & Supplies - Wholesales Stores

    Transaction:
    Paypal * SVM LP

    I just did the calculation myself, total credit line - available credit = purchase amount of these gift cards, so can I say I'm safe so far? It's unlikely it would convert to CA later right?

  • Had two SVM gift card purchases with two different AMEX cards on 12/5. Neither coded as cash advance. I don't think anyone is getting a cash advance code on an AMEX card. You might want to retract the AMEX statement unless you really do have a data point.

  • Amex DP. No fee for me but it did post differently.
    12/4: description: MONEY SERVICE BUSIN
    11/27: description: NON-DURABLE GOODS

    • +1 same for me on Amex SPG for 12/4 versus earlier. I don't see anything about a fee anywhere either, but unsure where exactly that would be other than listed in the transaction history?

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