sam/Saar: PayDirect ??

Discussion in 'Credit Talk' started by JacquiG, May 2, 2001.

  1. JacquiG

    JacquiG Well-Known Member

    I'm curious as to how the card companies classify your PayDirect transactions. Here's the situation: FNANB was offering 0% until August on all purchases made during April, so I used my Discover card for a car repair, groceries, etc. to get the cash back, then used PayDirect to move the balance to FNANB to get the 0% deal. It is showing on FNANB's site as a purchase, and Discover as just 'Yahoo/PayDirect', with no indications as to whether it is a credit or payment. If it's a credit, I just lost my 1% for those purchases; if a payment, fine.

    Also, I recently received something from MBNA stating that PayDirect or similar transactions will soon be posted as credits (not payments) and cash advances.

    How has this worked for you? Thanks...
  2. Saar

    Saar Banned


    When using PayDirect to move money between CC accounts, the withdrawal should register as a purchase, and the deposit should register as a credit.

    That is to say, you'd still need to pay your minimum amount due for the account that the money is transferred to (unless, of course, there would be no outstanding balance left once the transfer is made).

  3. marci

    marci Well-Known Member

    Re: PayDirect


    I was wondering the same thing. I just used PayDirect for a small amount with my Capital One card. I noticed in the terms of agreement that some issuers consider PayDirect a cash advance now. I don't know how Cap One classifies it; I'll wait to find out on my statement.

    I'm not suprised that the issuers are making these transactions cash advances. :-(

    Anyway, my Cap One high balance is now $10 less than my real credit limit, so I expect a huge credit score improvement soon (last update had my current balance at $11 over my high balance making me look like I went overlimit and resulted in a 12 point credit score drop from the month before).

  4. marci

    marci Well-Known Member

    Re: PayDirect

    Btw, Saar,

    Thank you for the PayDirect recommendation a few months ago. It is a nice resource.
  5. Saar

    Saar Banned

    Re: PayDirect

    Thanks for pointing out the new potential "cash advance" danger. Anyone knows of issuers who indeed consider it a cash advance?

  6. sam

    sam Well-Known Member

    Re: PayDirect

    it can't be construed as a cash advance unless you claim the item you were selling was cash. Otherwise just say "Look i sold this item, it was a physical item". Paypal works the same way, you describe the item you are selling, and if its described as "quasi-cash" it will show up as a cash-advance.
  7. marci

    marci Well-Known Member

    Re: PayDirect


    Thanks for the heads up on the description. I guess my description is ambiguous. Not knowing this, I just put "for a friend's vacation" in the desciption field. ooops...

    Oh well, if Cap One makes it a cash advance, I'll just write them via PFB. :)

  8. creditwork

    creditwork Well-Known Member

    Re: PayDirect

    I like to test the PayPal theory with someone. I will not give them 11 installments of $100 for a $1000 membership, but I will give them a check for $1050 as soon as the funds clear. Anybody interested?

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