Originally Posted by
Hawkeyefan
Im sure many of you got emails or mailings about the new definition of 'cash-like' transactions, which include purchases from stores, vendors, service providers, etc that use 3rd party transaction companies like Square, PayPal, etc.
Not good.....really not good. Am I reading right that these types of transactions will be treated like a cash advance? Thats absolute bullcrap. Many small businesses use 3rd parties to transact with. My business does.
If I am right on this....what card should I switch to? I currently have the Ink Biz Preferred/Unlimited for business. Also have United Explorer as a pers card. Got mailings on them all.
Originally Posted by
RedSun
Paypal will never get banned or treated like "cash like" payment. Paypal serves as a payment processor. Eventually I expect more merchants adopt Paypal as another payment method in addition to Visa, MC, AmEx and Discover. Paypal merely links merchants with customer. Payment type is not changed.
Third party bill payment processors include the type of Plastiq. With those, payment type changes. Plastiq "charges" the CC banks, convert the charges into cash. Then Plastiq pays the landlords and other merchants with cash. Clearly Plastiq converts "charges" into cash, not just "cash like".
We'll see how Plastiq is going to change. I would expect more or all Chase CCs be excluded from Plastiq.
With its charging 2.85%, Plastiq is pretty much dead anyhow.
I agree with RedSun here and I don't think OP needs to worry. The change in language states:
making a payment using a third party service including bill payment transactions not made directly with the merchant or their service provider.
That last part is key in terms of the language. That means that if you go to the merchant's site or app and use PayPal/Square/Toast/etc. to make the payment, you are indeed making the payment directly through the merchant. For example, my local natural gas company allows customers to pay their bills using PayPal through their site. Even though PayPal is handling the payment, the payment is still being made directly through the gas company. Most restaurants use third parties to process transactions made through their sites/apps and this would also be OK as the payment is being made directly with the restaurants. This language is trying to catch payments where the cardholder is pushing the payment directly to merchant X such as using Plastiq as RedSun describes.