Funding Bank Account with Chase Card Counting as Cash Advance
Funding new bank accounts with a credit card can be a good way to increase your credit card spend and hopefully earn some juicy signup bonuses. Chase card are usually a good option for this, but a recent datapoint reported on reddit points to possible changes.
The redditor reports that soon after he used his Chase Sapphire Preferred card to fund a US Bank account, he got the following notification in the app:
“You recently used your credit card to transfer money or to fund an account(s). This is like withdrawing cash, which has a cash advance fee and APR.”
It then points to another page that says in the future these transactions will be considered cash advances. Chase might be cracking down on these transactions, so it’s a good idea to protect yourself. Cash advances are very costly. They usually have a 5% fee and high APR.
You can avoid cash advance fees by setting your cash advance limit to $0, or anything less that you are planning to charge on the card. This way, the transaction will be declined if it would be processed as a cash advance.
Please let me know in the comments if you have received a similar message, or if you have successfully funded bank account with Chase cards recently.
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