What to Know About Chase’s New Policy on ‘Cash-Like Transactions’ Advertiser disclosure You’re our first priority. Each every time. We believe everyone should be able make financial decisions with confidence. Although our site doesn’t include every business or financial product available on the market We’re pleased that the advice we provide as well as the advice we provide as well as the tools we design are impartial, independent, straightforward — and free. So how do we earn money? Our partners pay us. This could influence the types of products we write about (and the way they appear on our site) however it in no way affects our recommendations or advice that are based on hundreds of hours of study. Our partners are not able to be paid to ensure positive review of their services or products. . What should you know about Chase’s New Policy regarding “Cash-Like Transactions.” These transactions can trigger fees and may prevent purchases from earning reward points. Written by Gregory Karp Senior Writer | Credit cards, personal finance and the credit score Gregory Karp is a former NerdWallet author and an expert on personal finances and credit cards. A journalist for more than 30 years, he has been a reporter for newspapers and an editor, authored two books on personal finance, and developed”Spending Smart,” a “Spending Smart” syndicated newspaper column. His distinctions include national recognition several times from the Society for Advancing Business Editing and Writing. April 15, 2022 Edited By Kenley Young The editor assigned to the assignment Credit scores, credit cards Kenley Young is the director of daily credit cards coverage for NerdWallet. Prior to that, he worked as an editor of the homepage and digital content producer for Fox Sports, and before that a front page editor for Yahoo. He has a wealth of experience in both digital and print media, with periods as an editor at the copy desk as well as a wire editor, and metro editor at McClatchy. McClatchy newspapers chain. Email:
. A majority or all of the products we feature are made by our partners, who pay us. This influences which products we write about and where and how the product appears on the page. However, this does not influence our opinions. Our opinions are entirely our own. Here’s a list of and . Chase is now using a revised and expanded definition of “cash-like purchases,” which for Chase credit card holders refers to purchases that trigger the penalties of taking the risk of taking . Cash advance rules can vary according to the card you use however they usually have high fees and interest, while also excluding purchases from earning reward points, such as cash back, points or miles. An example of transactions that look like cash, often called “cash equivalents,” would be using credit cards to cash out cash at an ATM. In some ways, Chase is just making explicit its current definition. The changes take effect at different times, but typically from early to mid-April 2021. >> MORE: What’s changing Chase in recent times? It has ruled out certain kinds of transactions, like funding an account for and from an exchange. That remained true as Chase introduced its new definition of cash-like transactions. However, if Chase eventually allowed those transactions, they’re clearly identified as cash-like transactions and are considered to be cash advances. In its notification to cardholders, Chase stated that cash-like transaction include, but are not restricted to the following categories: Exchange of currency as well as other payment methods such as travelers checks, foreign currency, money orders wire transfers, cryptocurrency, similar digital or virtual money and other similar transactions. Gambling: Lottery tickets, casino betting chips, racetrack bets and similar online and offline betting transactions. P2P transactions: Individual-to-individual money transfers and account-funding transactions that are used to transfer money. Third-party bill-pay services: Includes bill-payment transactions not made directly with the merchant , or their provider. Certain items, such as lotto tickets were considered to be cash-like transactions by the prior agreements between Chase and cardholders. The new definition broadens and clarifies what Chase means by cash-like transactions, it said. The list does not include explicit mention of well-known payment platforms including , Google Pay, Venmo, PayPal Key and . A Chase spokesperson confirmed that each of them “could” be considered cash-like transactions. The purchase of products or services by a business using a third-party payment service are not cash-like transactions and do not incur the charges that go with them, she added. Thus, for instance that you use the Chase card to pay for the purchase in-person through Apple Pay or an online purchase through PayPal at the point of purchase would not be a cash-like transaction. Transactions made using a Chase credit card are regarded as transactions and cannot be cash-like transactions, she explained. And Plastiq says it automatically declines transactions if the issuer treats them as cash advances. Why the definition matters Generally, a cash-like transaction could have these downsides: Cash advance fee . This is a once-off fee charged when you take your advance, usually 3% to five percent of the total amount. Higher interest rates. A lot of cards have a higher annual percentage rate for cash advances than regular purchases. No grace period. If you pay your total balance monthly generally, you’ll have a time frame of at least 21 , days in which to pay for purchases before you’re charged for interest. Cash advances however begin to earn interest on Day One. Credit limits are lower. Some credit cards offer a separate money advance limit that is less than the overall credit limit. There are no rewards on credit cards. Spending money on a cash equivalent probably doesn’t qualify for rewards, such as cash back, travel points or miles. Similarly, it won’t contribute to your minimum spending to earn a sign-up bonus. >More: What to do if you’re nervous If you’re concerned about being socked with cash advance fees You can contact the number located on the reverse of your credit card and ask that you Chase . That way, if a purchase is found to be a cash-like purchase that is rejected in the event that it is over the limit, instead of being subject to fees. If you aren’t happy with Chase’s changes to the definition of cash-like transactions you are able to reject them until the day before they become effective. But then Chase will cancel your account. What options do Chase offers as alternatives to cash advances can be a costly option to obtain cash. However, Chase provides a different way to get access to the credit card’s line credit, besides purchasing, if that’s your goal. My Chase Loan is like a bank loan. Once you’ve been approved, you’ll get a payment directly in your banking account. You have a set amount of time to repay the loan, and you’re paying a variable rate of interest dependent upon the Chase card you are using for the loan. >> MORE: About the author: Greg Karp is a writer at NerdWallet who was a former expert on personal finance and credit cards. He previously worked at the Chicago Tribune and wrote two books about money. On a similar note… Choose the perfect credit card for you. If you’re looking to pay less interest or earn more rewards, the perfect card is available. Answer a few simple questions and we’ll narrow your selection for the right card for. 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