Feb 6, 2021, 10:30 pm
Last edit by: RNE
In early Feb-2021, Chase sent email to credit card holders about the changes to the section of "Cash-like" Transaction of the Cardmember Agreement. The changes take effect 4/7/2021.
4. Important Definitions
The "Cash-like Transactions" section within the Important Definitions section of your Cardmember Agreement is replaced to clarify and expand the definition as follows:
WHAT IT MEANS: Cash-like transactions will be treated as cash advances. Cash-like transactions include, but are not limited to, the following transactions to the extent they are accepted:
purchasing travelers checks, foreign currency, money orders, wire transfers, cryptocurrency, other similar digital or virtual currency and other similar transactions;
purchasing lottery tickets, casino gaming chips, race track wagers, and similar offline and online betting transactions;
person-to-person money transfers and account-funding transactions that transfer currency; and
making a payment using a third party service including bill payment transactions not made directly with the merchant or their service provider.
Data Point of Chase charging cash advance fees on any transactions (before and after 4/7/2021)
Data Point of any credit card banks that charge cash advance fees on popular payment systems (Paypal, Plastiq, Venmo etc)
Cash advance at bank branch, from credit card
Bond or bail posted at court and police station
Word to the Wise: It may be advisable to contact Chase ahead of time to reduce your cash advance limit to a minimum on the card you intend to use.
4. Important Definitions
The "Cash-like Transactions" section within the Important Definitions section of your Cardmember Agreement is replaced to clarify and expand the definition as follows:
WHAT IT MEANS: Cash-like transactions will be treated as cash advances. Cash-like transactions include, but are not limited to, the following transactions to the extent they are accepted:
purchasing travelers checks, foreign currency, money orders, wire transfers, cryptocurrency, other similar digital or virtual currency and other similar transactions;
purchasing lottery tickets, casino gaming chips, race track wagers, and similar offline and online betting transactions;
person-to-person money transfers and account-funding transactions that transfer currency; and
making a payment using a third party service including bill payment transactions not made directly with the merchant or their service provider.
Data Point of Chase charging cash advance fees on any transactions (before and after 4/7/2021)
Data Point of any credit card banks that charge cash advance fees on popular payment systems (Paypal, Plastiq, Venmo etc)
Cash advance at bank branch, from credit card
Bond or bail posted at court and police station
Word to the Wise: It may be advisable to contact Chase ahead of time to reduce your cash advance limit to a minimum on the card you intend to use.
New Chase 'cash-like' terms March 31, 2021
Jan 30, 2021, 5:48 pm
#1
Original Poster
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Location: Rochester, MN
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New Chase 'cash-like' terms March 31, 2021
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.
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.
Jan 31, 2021, 9:10 am
#3
Join Date: Sep 2015
Location: flyover country
Posts: 2,435
making a payment using a third party service including bill payment transactions not made directly with the merchant or their service provider.
Jan 31, 2021, 9:50 am
#4
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Jan 31, 2021, 10:20 am
#5
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Presuming that this is the first step in dealing with the fallout from new AML rules required under last month's legislation. Bottom line is that if a customer's conduct or transactions require or suggest reporting, but the cost exceeds the benefit of the customer, e.g. "unprofitable" the only solution is to prohibit the transaction or take other actions such as impose fees and the like. The former is manageable, the latter is not.
Jan 31, 2021, 12:29 pm
#6
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Join Date: Jan 2014
Location: Rochester, MN
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If someone has a list that would be great. IMO paying a business via Square for example, and having it be treated like a cash advance, is just plain wrong.
Jan 31, 2021, 1:18 pm
#7
Join Date: Apr 2015
Programs: United Global Services, Amtrak Select Executive
Posts: 4,098
Just so I understand, if a transaction is deemed "cash-like", does that mean you start paying interest on it from the transaction date, even if you are in an "interest-free period"?
Jan 31, 2021, 4:26 pm
#9
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Location: EWR/PHL/BWI
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This is More About Plastiq
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.
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.
Feb 1, 2021, 11:23 am
#10
Join Date: Apr 2014
Posts: 539
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.
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.
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.
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.
making a payment using a third party service including bill payment transactions not made directly with the merchant or their service provider.
Feb 1, 2021, 11:54 am
#11
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Location: EWR/PHL/BWI
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I've also paid my utility bills form their websites. Some use Western Union SpeedPay. They show correctly at the CC bank side. WU does not even show. I would think most of the tax payment sites should be no problem either.
Plastiq is about the only one I'll tread carefully. A lot of the VISA CCs have been disabled with PQ. Or they will be considered as cash advance. This is consistent with the recent updates.
Plastiq is about the only one I'll tread carefully. A lot of the VISA CCs have been disabled with PQ. Or they will be considered as cash advance. This is consistent with the recent updates.
Feb 1, 2021, 11:58 am
#12
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Location: Rochester, MN
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Posts: 1,830
I agree with RedSun here and I don't think OP needs to worry. The change in language states:
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.
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.
Feb 2, 2021, 11:15 am
#14
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https://www.chase.com/personal/credi...ychaseplan-hub
My Chase PlanŽ lets you pay off a purchase over time in fixed, equal monthly payments. There’s no interest for this purchase once it’s placed in a plan, just a fixed monthly fee.You can also calculate your plan options for a purchase of $100 or higher before you make a purchase.
Feb 2, 2021, 2:45 pm
#15
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“making a payment using a third party service including bill payment transactions not made directly with the merchant or their service provider”
Anyone have a guess if this impacts IRS tax payments via the likes of pay1040?
Anyone have a guess if this impacts IRS tax payments via the likes of pay1040?