Old Jan 1, 2019, 2:14 pm
FlyerTalk Forums Expert How-Tos and Guides
Last edit by: FreakingFlyer
When reporting/posting here please give as many details as you can or you will be asked for it anyways. Copy and paste the text below and alter as needed.

1. SHUTdn by Bank, Credit Card info. (@m3x, chs3 ,c1t1 and brcl@y)
2. Length of account before closure and CL?
3. Average monthly account balance checking and savings?
4. Volume of ms per month and how many months?
5. Cycle CL?
6. Did you BP using both options?
- BP by issuing bank (@m3x, chs3, c1t1 and brcl@y)
- BP by Vis/MC
7. Did you spell out the bank's full name in an internet forum?
Print Wikipost

2019 Shutdown Thread

Old Aug 2, 2019, 9:13 am
  #181  
Suspended
Hyatt 10+ BadgeMarriott 10+ Badge
 
Join Date: Jan 2017
Location: EWR/PHL/BWI
Posts: 4,412
Originally Posted by Lobachevsky
Cycling your CL x times also doesn't violate any terms.
What?? If you are correct, then why we have credit line?
RedSun is offline  
Old Aug 2, 2019, 10:12 am
  #182  
 
Join Date: Mar 2005
Programs: Continental Onepass, Hilton, Marriott, USAir and now UA
Posts: 6,374
Originally Posted by Lobachevsky
Tell me what rule was broken, please.

The fact that Discover says certain purchases don't earn rewards doesn't mean that you're breaking any rules by buying them. It's not our fault that Discover (and other CC issuers) don't follow their OWN rules and pay rewards when we buy prepaid cards.
Surprise!!
They are following their rules. It says that you don't get cash back for certain purchases, including gift cards.
What they see is someone abusing their card for cash back that they (Discover) shouldn't;t pay and you don't deserve.
So, congratulations on getting 3 years equivalent of cash back before they closed you down.
But don't be shocked that they did so.
As I said, you are not their customer of choice.
radonc1 is offline  
Old Aug 2, 2019, 11:38 am
  #183  
 
Join Date: Oct 2013
Posts: 151
Originally Posted by RedSun
What?? If you are correct, then why we have credit line?
A credit line is the amount you can owe on a card at a particular time. If you have a $1000 CL and you charge $250, you can still charge $750 more--and if you pay the $250 you owe, you can then charge $1000 more. It's a LINE OF CREDIT--it's not a limit to how much you can spend per month.
Lobachevsky is offline  
Old Aug 2, 2019, 11:41 am
  #184  
 
Join Date: Oct 2013
Posts: 151
Originally Posted by radonc1
Surprise!!
They are following their rules. It says that you don't get cash back for certain purchases, including gift cards.
What they see is someone abusing their card for cash back that they (Discover) shouldn't;t pay and you don't deserve.
So, congratulations on getting 3 years equivalent of cash back before they closed you down.
But don't be shocked that they did so.
As I said, you are not their customer of choice.
There's a contract between the cardholder and the card issuer. Notions of "abusing" a card, where that definition is determined randomly, is neither legal nor fair. We're obligated to abide by the contract terms but so is the bank. If there's something called "abuse" make it part of the terms and specify what it is.

And, BTW, what's "abuse" generally means that the CC company doesn't like how many rewards you earn--despite the fact that it advertises "unlimited" rewards. The way to avoid that kind of "abuse" is to limit rewards. Otherwise, the CC company is guilty of fraud IMHO.
Zgirl likes this.

Last edited by Lobachevsky; Aug 2, 2019 at 11:59 am
Lobachevsky is offline  
Old Aug 2, 2019, 12:10 pm
  #185  
Suspended
Hyatt 10+ BadgeMarriott 10+ Badge
 
Join Date: Jan 2017
Location: EWR/PHL/BWI
Posts: 4,412
Originally Posted by Lobachevsky
A credit line is the amount you can owe on a card at a particular time. If you have a $1000 CL and you charge $250, you can still charge $750 more--and if you pay the $250 you owe, you can then charge $1000 more. It's a LINE OF CREDIT--it's not a limit to how much you can spend per month.
Interesting. I sincerely wish you the good luck to cycle 5x or more of the CL.

A lot of the shut-downs are caused by CL cycling. If you cycle a Citi DC or Fidelity Visa with $20,000 CL 5 times a month, I'm sure Citi and Elan will shut you down in no time. That is a $2,000 loss for each card.

Same with BA Premium Rewards and other high rewards cards without any reward limits....
RedSun is offline  
Old Aug 2, 2019, 12:20 pm
  #186  
 
Join Date: Mar 2011
Location: SAN
Programs: Delta Gold. Hilton Diamond. Hyatt Explorist.
Posts: 1,668
Originally Posted by RedSun
Interesting. I sincerely wish you the good luck to cycle 5x or more of the CL.

A lot of the shut-downs are caused by CL cycling. If you cycle a Citi DC or Fidelity Visa with $20,000 CL 5 times a month, I'm sure Citi and Elan will shut you down in no time. That is a $2,000 loss for each card.
Are you sure it is really a $2000 loss?
ChrisFlyer66 is offline  
Old Aug 2, 2019, 12:26 pm
  #187  
 
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 9,981
Originally Posted by ChrisFlyer66
Are you sure it is really a $2000 loss?
Yeah - I don't understand at all where the $2,000 comes from here. And is it a loss to you or the bank?
josephstern is offline  
Old Aug 2, 2019, 12:31 pm
  #188  
 
Join Date: Oct 2013
Posts: 151
Originally Posted by RedSun
Interesting. I sincerely wish you the good luck to cycle 5x or more of the CL.

A lot of the shut-downs are caused by CL cycling. If you cycle a Citi DC or Fidelity Visa with $20,000 CL 5 times a month, I'm sure Citi and Elan will shut you down in no time. That is a $2,000 loss for each card.

Same with BA Premium Rewards and other high rewards cards without any reward limits....
And you know the cause is CL cycling how, exactly? Do you think that if you used a non-rewards card with the same CL cycling you'd be closed down? Banks love to see extensive card use--as long as that use is profitable to the banks.
Lobachevsky is offline  
Old Aug 2, 2019, 12:44 pm
  #189  
 
Join Date: Feb 2014
Posts: 42
deleted
Abflying is offline  
Old Aug 2, 2019, 12:46 pm
  #190  
 
Join Date: Feb 2014
Posts: 42
Originally Posted by littlewinglet
Was it a biz or personal card, and where were you "shopping"? I'm thinking on a biz card there's a legitimate excuse to buy VGC as those are part of many business' marketing costs. With personal it's a tough call.
Personal, mix of all MS places, online, mall, grocery
Abflying is offline  
Old Aug 2, 2019, 1:41 pm
  #191  
 
Join Date: Oct 2014
Programs: All of them
Posts: 1,663
Originally Posted by Abflying
Personal, mix of all MS places, online, mall, grocery
Thanks for the info. Any particular transaction they claimed was suspicious? I'm curious if it's just something you did that was unlucky, or they're starting to clamp down on MS in general.
littlewinglet is offline  
Old Aug 2, 2019, 2:01 pm
  #192  
Suspended
Hyatt 10+ BadgeMarriott 10+ Badge
 
Join Date: Jan 2017
Location: EWR/PHL/BWI
Posts: 4,412
Originally Posted by ChrisFlyer66
Are you sure it is really a $2000 loss?
Originally Posted by josephstern
Yeah - I don't understand at all where the $2,000 comes from here. And is it a loss to you or the bank?
$20,000 CL x 5 = $100,000 spending. 2% of $100,000 = $2,000 cashback.

Also, for BA Premium Rewards, the top tier earn 2.625% cash back. I'm sure no swipe fees can cover that cost if you cycle it 5 times.

Last edited by RedSun; Aug 2, 2019 at 2:06 pm Reason: Addition.
RedSun is offline  
Old Aug 2, 2019, 2:19 pm
  #193  
Suspended
 
Join Date: Sep 2016
Posts: 198
Originally Posted by radonc1
Surprise!!
They are following their rules. It says that you don't get cash back for certain purchases, including gift cards.
What they see is someone abusing their card for cash back that they (Discover) shouldn't;t pay and you don't deserve.
So, congratulations on getting 3 years equivalent of cash back before they closed you down.
But don't be shocked that they did so.
As I said, you are not their customer of choice.
care to point me to where GCs are listed as excluded in their terms? Ill give you a hint .... they arent .....
beast7276 is offline  
Old Aug 2, 2019, 2:34 pm
  #194  
 
Join Date: Feb 2014
Posts: 42
Originally Posted by beast7276

care to point me to where GCs are listed as excluded in their terms? Ill give you a hint .... they arent .....
I agree, I read through all the terms again and only mentioned point are Cash advances. Well then again banks will be banks,

Last edited by Abflying; Aug 3, 2019 at 11:05 am
Abflying is offline  
Old Aug 2, 2019, 2:38 pm
  #195  
 
Join Date: Mar 2011
Location: SAN
Programs: Delta Gold. Hilton Diamond. Hyatt Explorist.
Posts: 1,668
Originally Posted by RedSun
$20,000 CL x 5 = $100,000 spending. 2% of $100,000 = $2,000 cashback.

.
That assumes the cash back is a "Loss". But they do get money from swipe fees. I don't know exactly how much, but I'm sure it is enough that they aren't losing the entire $2000. Just googling it I see that swipe fees average around 2%, but are higher for premium credit cards.
ChrisFlyer66 is offline  

Thread Tools
Search this Thread

Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.