Posted by Chuck on March 17, 2019
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Published on March 17th, 2019 | by Chuck

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PNC Bank Funding Now Codes as Cash Advance

PNC allows $2,000 in credit card funding on their bank accounts, and they also have some nice signup bonuses, including this nationwide $200-300 offer. Unfortunately, many data points are coming in that PNC has changed their system and the credit card charges are now coding as a cash advance, not an ordinary purchase.

This includes attempts with Chase (INK Preferred, United, etc.), Fidelity, Bank of America, Citi, and Barclay. It’s likely that everything is now a cash advance. See data points in the comments of this post and this post (toggle to get the newest comments), as well as these Reddit reports.

The change happened something on March 13th, I believe. If anyone finds anything that still works from March 13th and beyond, please let us know. We’ll update our resource on Bank Accounts that Count as Purchase with the new information.

If you were hit with a cash advance fee, the first thing to do is pay off the balance immediately so that you don’t continue to accrue interest. You can also try calling in and explain the situation, and ask the bank to waive the 3% cash advance fee. Not sure if it’s possible to have a cash advanced reversed, that seems unlikely.



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Matthew
Matthew

A bummer as I am still fairly new to this and PNC was next on my list. Actually the only reason I did not do it about a week ago was when I tried to and found that a non-US citizen cannot open online. Sad to lose the 2k points or cashback, though $300 is still a good bonus.

A M
A M

And churbable from year to year!

vipul
vipul

Can’t do it in branch also, so we didn’t lose anything here 😉

Realname
Realname

Funded 2k with CSR on 3/5 coded as purchase and DD
Funded 2k with CIU on 3/11 coded as purchase (this was for a savings account)

WL
WL

Funded with Citi Preferred on March 15. What is the best thing to do to minimize the fees once the $2000 is posted as cash advance?

The Man
The Man

Pay off that balance ASAP!

Jags
Jags

Pay immediately as you’ll accrue Interest from day 1.

Jim
Jim

FYI I chatted to try to get the fee and interest waived but the CSR wouldn’t do it. She did give me 4K aa miles for my trouble. I might try again tomorrow

Sevillada
Sevillada

Besides paying it off right away, contact citi. They may waive it as a one time courtesy. They also do it if you forget to make a payment.

vince
vince

pay off your entire statement balance + the cash advance now before it even posts (i’m pretty sure you can do that)

if you can’t… then well you really need to reconsider your risk tolerance when playing in this game and doing CC funding.

LC
LC

its just 3%. this shouldnt be hurting anyone in this game if you are doing it right. this is a 1 out of 100 time the 3% gets us. Big deal guys!

Aaron
Aaron

$60 is sixty bucks. I know people are still coming out ahead overall, but it does cut into the profits.

WL
WL

Too bad Citi won’t let me pay before the transaction is posted.

ABC
ABC

What about AMEX?

Ben
Ben

What about AMEX? We’re talking about funding PNC opening deposit from Visa, Mastercard, or Discover. They don’t process AMEX as a cash advance, because they don’t process AMEX at all.

Vy
Vy

It was bound to happen sooner or later… 🙁

Sevillada
Sevillada

Everyone “blames” PNC (as in, something PNC did), but it’s quite possible they didn’t change anything, and instead visa/MC/banks added the MCC that PNC used to the list of “cash equivalents”.
Something like this happened when buying Bitcoin at coinbase. One day it started counting as a cash advance and apparently coinbase didn’t realize for 2-3 days until enough complaints came in. According to coinbase, they didn’t change the MCC.
in that case though, coinbase was originally already charging a 3% (or so) fee when buying with CC, so when it changed, the total fee became around 6% plus interest, without warning. Coinbase didn’t give any fucks, so…they made it to my blacklist.

AkJohnny
AkJohnny

what is mcc?

Charlie
Charlie

MCC is merchant category code.

Ben
Ben

Cash advances don’t have an interchange fee charged at point of distribution, so it makes sense that it gets collected at the source side instead.

It’s the quasi-cash transactions that are the problem. If a bank is both receiving their portion of a purchase interchange fee, and also charging a cash advance fee on top of that, time to send them a clear message that’s unacceptable. But you won’t see a bunch of unaffiliated banks making that change simultaneously — when multiple banks are affected it’s virtually guaranteed that the merchant changed the processing.

Perhaps Coinbase knew full well that something had changed, but that something wasn’t (just) the MCC, so their public statement would be true on a technicality.

Getting back on topic, it’s likely that PNC got tired of writing off interchange on initial credit card funding as a customer acquisition expense, and has started processing using a method that doesn’t cost them.

Schmekel
Schmekel

Coinbase sucks.

CHUCKLEHEAD
CHUCKLEHEAD

DUN DUN DUN! Another one bites the dust! DUN DUN DUN! ANOTHER one bites the dust!

Jags
Jags

Any news on Citizens Bank? That was another go to.

TheDataPointYouAskedFor
TheDataPointYouAskedFor

I funded a Citizens bank account on 3/15 with a Chase Freedom and it counted as a regular purchase.

gnomeozurich
gnomeozurich

How quickly did it post? I just opened a new citizens, tried to do a 1k opening deposit with a CIP and when I logged in, the account had $0 and nothing was showing up on my CIP login either. Opened the account about 45 minutes ago. I reduced my cash advance limit because I got burned on associated bank 2 weeks ago, so I’m expecting the transaction not to go through if it’s counting as a CA.

JohnK
JohnK

I had issues with my Arrival+ not going through. When I was on the phone with an agent, they said “a $1000 cash advance for Citizens Bank”. I applied online and the payment was held up twice with Barclays, the second time calling them the agent said the above..

arch
arch

They seem to be getting tougher on DD’s also. Did Discover DD’s and got the alerts but bonus never posted. Did Chase, got alert and it has been 3 weeks, nothing yet. Anybody else had DD issues?

Lc
Lc

Just don’t call the bank

arch
arch

If I was going to call them, I would have called after the Discover DD didn’t work. Hopefully the automated process will work for Chase soon, otherwise I’ll close and start the clock for the next one.

Bruce
Bruce

Not sure bonuses for this month have posted yet? Last DP I saw bonus posting on 2/22

arch
arch

I don’t know the timetable for posting bonuses but hopefully I’ll get it by next week

Oliver
Oliver

Could you kindly report back if/when your bonus posts? Would be nice to get some new DPs on working DDs.

Kevin
Kevin

I opened my account on the 13th of March and posted on the 14th as a sale. Used Business Ink Preferred.

sam
sam

Same here on United Biz on 3/13. I freaked at first, but my CA limit was set to min. and the CA balance is still 0 days later. RIP Pnc funding!

quasimodo
quasimodo

ditto CSP

Theory
Theory

We’ll miss you PNC bank funding, you were a real one 🤜🤜☝️

Joe
Joe

This is what happens when it’s literally talked about 24/7 on blogs and the subreddit, as well as so many noobs calling the bank and asking if they can fund in order to meet their spend, or fund in branch, etc.

William Charles

Wasn’t really talked about much on blogs to be fair. The reason this likely died is because people were just opening multiple accounts purely for the CC funding.

Bob Roberts
Bob Roberts

I agree someone on reddit said they’d opened 17 accounts. Jfc.

Parkerthon
Parkerthon

Why didn’t they just lower the limit to discourage the repeat MSers? Probably further evidence this was done by Visa/MC and not by PNC.

Sevillada
Sevillada

And moving out the funds as soon as they cleared, they have no patience

Emporio
Emporio

Thanks for the post Chuck! It’d be quite the headache to be charged cash advance fees on $2K when you are expecting it to post as a purchase.

vince
vince

why would anyone do this on a card that doesn’t allow them to set their cash advance to <2000 let alone not set their cash advance on a card prior to doing this

Orin
Orin

Before it would sometimes code ca at beginning and convert to purchase when posting

Sevillada
Sevillada

Because it used to work just fine

JV
JV

I have CA limit at $0 on all cards that allow it. Only fund checking accounts with cards at $0 CA so i’d have an argument if CA posted and it shouldn’t have

MoreSun
MoreSun

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