Originally Posted by
mrpickles
Banks see prepayment as suspicious/unusual activity and do not like it. They suspect kiting because the instrument used to prepay could in theory be reversed by the maker. This would leave them with exposure greater than your actual line of credit. Some cards allow you to go over limit like visa signature and some Amex and Diners Club m/c. My Diners told me 3.5 time the credit line is allowed. They said just dont make payment before it show online as posted. Payment before due date is always allowed.
My Citi MC told me that pre-paying is allowed. I spoke to them the other day about how to make a significant purchase, one that was more than twice what the computer showed as my limit at the time (it's a no preset spending limit card so the maximum limit is determined daily.) When I told them that the cash was already in my checking account they said that I could pre-pay the credit card to make the purchase. I have also pre-paid my Amex card dozens of times, even in excess of 100k with no problems. Amex told me that they don't encourage pre-payments, but that my only risk is potentially not having the funds credited immediately.