I had a similar problem when I funded an Citi Ultimate Savings with BA Chase, took 3 attempts. On the final try the CSR said she raised the security level on my account to allow this type of transaction.

On similar topic, just opened a Citi Checking and funded with a CC. CSR said that citi just instituted a new policy and he was required to read me a paragraph about credit card funding potentially charged as a cash advance. I had to say that was ok to continue. He indicated that it should go through as "Other Purchases", but some CC companies might treat these as cash advances. I'm not worried b/c the initial funding I am requesting is well above my cash advance limit, but we will see what Chase UAL does with it.