Posted by Chuck on December 6, 2017
Credit Cards

Published on December 6th, 2017 | by Chuck


SVM Gift Cards on eBay is Coding as Cash Advance…Again

Deja vu.

Since a couple of days ago, the SVM gift card seller on eBay purchases are getting coded as cash advance. Seems to be universal across all credit cards; we’ve seen data points on Visa, Amex, and Discover.

Update: SVM insists the issue was only for a few hours and has been fixed. Let’s hope that’s the case. Please contribute data points below.

They had this issues a few times before. Oddly, last time Amex did not code as cash advance while this time it appears thus far that they are, as shown in screenshot above.

Last time around, their merchant category coding got changed from “Services Not Elsewhere Classified” to “Prepaid and Stored.” It’s probably something similar this time as well. The new coding is coming through as a cash advance which has fees and doesn’t earn points.

You might want to leave them bad feedback to make them aware of the issue. Calling in could work too, but it takes them longer to find out that way. It’s worth noting that the issue seems to be a Paypal mistake, not an SVM mistake.

Also, if you did get hit with a cash advance fee, it could be a good idea to quickly pay down your balance in case it can’t be reversed. Otherwise, interest starts accruing immediately. We have one data point with Discover reversing the cash advance fee based on seeing prior transactions from SVM which weren’t cash advances.

For now, I’d advise against buying from SVM or just using Paypal and paying with your bank account or debit card.

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Someone has mentioned SVM told them they would be refunding $20 to people impacted. Have not confirmed this myself.

Since when did they change to CA? It seems the transaction on 11/30 is fine.

These types of issues can keep one awake at night not knowing if the charge will be coded as a cash advance or not. I’m anxious to find out if my transaction using the Citi Premier card to fund a bank account will post as a purchase. I set the cash advance limit to zero and the charge went through without any problems. I didn’t even get a fraud alert.

Is this only when paying directly with credit card in ebay instead of paypal?

I got scared there for a second and had to check. I used paypal and it was coded as merchandise.

I can provide screenshots if you want but I’m not seeing this on my SPG card as of yesterday, coded as a purchase

My SPG card shows these transactions as purchases as well.

Amex cards can’t code as CA – they have never been an issue in the past with these things either.

That’s true for their charge cards but I’m not sure about credit cards.

Tried to make a purchase on 12/4 with my Chase card and it was strangely declined, must be because my cash advance limit is only $100. Used my checking account instead.

Went through on 12/5 but purchase is still under pending at this point.

I purchased two GCs from them yesterday using $200 Vanilla Gift that I wanted to drain.
This one didn’t get coded as cash advance. Obviously, it doesn’t have cash advance feature, or does it?
Just a DP.

In terms of paying down balance, that’s referring to full balance on the card, or just the amount of the cash advance (plus a little extra for potential interest)?

Just got this from SVM after contacting them:

Thank you for reaching out to SVM Gift Cards. SVM was informed by PayPal that PayPal inadvertently made a payment processing change to SVM’s account that is responsible for accepting and processing payments on our eBay store. The change resulted in your payment being processed as a Cash Advance payment. PayPal will be providing a credit to your account in the amount of $20. PayPal has confirmed the issue has been resolved and no future purchases will be affected.

Please note that this was NOT a mistake caused by SVM, rather it was an internal processing error in the PayPal system. There were no changes made by SVM that would have caused these transactions to be processed as a cash advance, so we were shocked to see this error. We are working diligently with eBay and PayPal to rectify the situation with those customers that have been affected, but have limited control due to the issue stemming from non-SVM controlled systems. If you do not receive contact from PayPal or eBay within the next five business days and the transaction has not been corrected, please respond directly to this message and we will work to get this resolved on your behalf.

Thank you for your understanding and continued patience.

Thank you,

The SVM Team “

Looks like it was a Paypal issue then regarding SVM purchases?

Chuck said on article that paypal isnt affected?

On my amex SVM is coming through as “supplies ans merchandise – wholesale clubs”. Not CA.

Where are the “data points” you reference? (a few links please) And how should we “leave them feedback” — as in where? And how would that be better than actually picking up the phone and calling? Given how much you do to help ebay with promoting these deals, we’ll anticipate much more follow-up on this.

self-correction — I’m glad we have many readers already contributing more details. Thanks.

Ebay has an integrated feedback system for purchases. He recommends leaving feedback there because it is not only visible to SVM, but other users as well — so they have a much bigger interest in fixing things because it could hurt future sales.

i used cap1 spark directly through ebay (didnt use paypal) and coded fine for purchase made on 12/4.

Again? How does this keep happening? You’d think they would have someone on staff at SVM by now to make sure this doesn’t happen since it’s such a huge shit show for them…

Amex DP. No fee for me but it did post differently.
12/4: description: MONEY SERVICE BUSIN
11/27: description: NON-DURABLE GOODS

+1 same for me on Amex SPG for 12/4 versus earlier. I don’t see anything about a fee anywhere either, but unsure where exactly that would be other than listed in the transaction history?

Same coding for me on BBP

Had two SVM gift card purchases with two different AMEX cards on 12/5. Neither coded as cash advance. I don’t think anyone is getting a cash advance code on an AMEX card. You might want to retract the AMEX statement unless you really do have a data point.

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