Credit Tips: Purchase Restrictions on Credit Cards

Posted On: February 1, 2006

archive
Posted: Tue Nov 30, 2004 1:06 pm
Post subject: Purchase Restrictions on Credit Cards
Geoff
Date: 11/17/2000 4:36 pm CDT

Hi. I was recently told by my bank (Bank of America) that I can no longer use my Visa to make online casino gaming chip purchases. So…

Do most banks decide what their customers can and can not purchase?

Are there any banks which do not?

Also, I don’t understand this concept of extra fees or a higher interest rate when I use my card for CASH instead of a direct purchase. Are there any cards/banks which won’t charge me extra for certain purchases, or for cash?

So what I’m looking for is a MasterCard which I can use to purchase ANYTHING, and which does not make a distinction between CASH and direct purchases. Any recommendations?

archive
Posted: Tue Nov 30, 2004 1:07 pm
Post subject: Purchase Restrictions on Credit Cards

Board Monitor - AD
Date: 11/17/2000 5:46 pm CDT

Geoff,

Purchasing casino chips is considered as a cash advance. Though I find it interesting that Bank of America has limited your purchasing of casino chips, it may be for a variety of reasons; such as reaching your ‘cash advance’ limit (not your purchasing limit), or defaulting on your terms and conditions statement.

It’s quite normal for card issuers to charge cash advance fees. I think the normal rate is 2% to 3% of the amount, and sometimes with caps. However there are some cards out there that sometimes offer special promotional low rates with no transaction fees that can be applied for cash advances. One such card that I know of is the MBNA Platinum Plus Card, which for those with very good credit, will provide direct deposits (cash advances) into your checking account with no fees.

Unfortunately, you’ll need to search around for the type of card you desire. If you have very good credit, look for a platinum issued card, as those tend to have better rates and less costly fees.

Sincerely,
Alex Daskaloff
http://www.creditcardfreedom.com

archive
Posted: Tue Nov 30, 2004 1:07 pm
Post subject: Purchase Restrictions on Credit Cards

Linda
Date: 11/17/2000 11:58 pm CDT

I read somewhere recently (sorry, I read so much stuff online I can’t recall where) that there were problems with online casino chargebacks, and that many card issuers were taking action in various ways.

Some were penalizing (with fines) the casinos who had a certain % of chargebacks, and some were just not going to do it anymore. I don’t know, but perhaps this has something to do with B of A not accepting those transactions. They don’t care what you buy, believe me.

The same article referred to online porn “memberships” also. I guess people get carried away and then dispute the charges, and it eats into the card issuer’s profits.