It’s no surprise that more and more banks are catching on to manufactured spending. In an effort to not only protect themselves from having to pay out too many rewards, they are also trying to cover themselves from other risky situations such as money laundering. As much as we may think one or more of these things is an innocent expense, from the point of view from the banks, it could be risky.
Starting March 1st, 2020, these specific actions will now be considered cash advances. As such, like any other normal cash advance, these purchases will not have a grace interest period, and will be subject to the cash advance APR.
- Online transfers to a deposit account
- Purchases of casino gaming instruments
- Purchases of travelers checks
- Race track wagers or similar
- Purchases of money orders
- Purchases of foreign currency
- Purchases of lottery tickets
- Purchases of cryptocurrency
- Making a payment using third party service
Believe me when I say that some of these items are genuinely annoying. I live in Las Vegas, so I do get annoyed when I see things like “purchases of casino gaming instruments” “track wagers” or “lottery tickets”. What may be considered abnormal for many, gambling is just a way of life here, especially if you do it every once in a while. Many of these items, I could see normal people just doing every now and then. So it sucks they have to be punished.
Again, I do understand from the banks perspective as to why these purchases may be risky. It’s just annoying for the like of us that never happen to carry cash and just need to purchase something real quick. At the same time, it’s not the end of the world to get a cash advance APR. If you really needed something in a pinch, there’s nothing wrong with just paying it off right a way and calling it a day.
What do you think about these changes? Are any of the activities you do now considered a cash advance by Penfed? Let us know down in the comment section below.