Important Question Re Cashback Card

bigstu22

Hi all. I'm hoping someone with some real inside knowledge can double check something for me. It's regarding the Capital One World MasterCard which is stated to pay 1% UNLIMITED cashback on all purchases.


My specific query is this. I run an online business and a lot of my purchases are made on eBay with paypal. I can clock up a significant monthly spend on my stock this way. Therefore, it's wise for me to start clawing some of that back via a cash back card I can use via paypal.


However, I will be spending significantly more than my card credit limit. To combat this, I would quite simply make more pay-ins to my credit card than the usual once a month so that I can keep spending.


I want to make ABSOLUTELY SURE that I will still get the 1% on spending by doing this. From what I can see, the cash back is only paid annually-so I would only find out way too late if this wasn’t allowed-losing a lot of cash back! I noted another card only allowed cashback up to the monthly credit limit amount so that’s why I wanted to check. I see nothing online to tell me this card is the same.


One final question. My purchases are via paypal. Would these be classed as normal purchases by the credit card for cashback purposes? Incidentally, I did call their ‘helpline’ to confirm-twice-but, even though both answers were positive, neither rep exactly inspired me with confidence!
Thanks in advance

Blobby8_2

I have a Capital one Mastercard giving 1% cash back, my accrued cashback is shown top right on my e statement under the heading Account summary.

System

The best getting this information from the horses mouth rather than a forum.
This would be the only way to be 'ABSOLUTELY SURE'.

That being said, its a personal card so business use is likely either directly prohibited or indirectly via money laundering considerations - if they cancel the card for either of those reasons before the annual cashback payment then you get nothing.

bigstu22 wrote: »

Hi all. I'm hoping someone with some real inside knowledge can double check something for me. It's regarding the Capital One World MasterCard which is stated to pay 1% UNLIMITED cashback on all purchases.


My specific query is this. I run an online business and a lot of my purchases are made on eBay with paypal. I can clock up a significant monthly spend on my stock this way. Therefore, it's wise for me to start clawing some of that back via a cash back card I can use via paypal.


However, I will be spending significantly more than my card credit limit. To combat this, I would quite simply make more pay-ins to my credit card than the usual once a month so that I can keep spending.


I want to make ABSOLUTELY SURE that I will still get the 1% on spending by doing this. From what I can see, the cash back is only paid annually-so I would only find out way too late if this wasn’t allowed-losing a lot of cash back! I noted another card only allowed cashback up to the monthly credit limit amount so that’s why I wanted to check. I see nothing online to tell me this card is the same.


One final question. My purchases are via paypal. Would these be classed as normal purchases by the credit card for cashback purposes? Incidentally, I did call their ‘helpline’ to confirm-twice-but, even though both answers were positive, neither rep exactly inspired me with confidence!
Thanks in advance

bigstu22

Thanks Blobby-that means I'll always know at a glance where I stand.

Heng-Leng-thanks also. Your point is well worth considering. I'd be gutted if I accrued significant cash back only for the card to be cancelled before it was paid to me.

I'll need to check to see if I am allowed to use it for business purchases. I'm thinking I already know the answer..........:(

If anyone else can chime in that would be great-I couldn't easily find a FULL t&c specific to that particular card on their site.

YorkshireBoy

bigstu22 wrote: »

I couldn't easily find a FULL t&c specific to that particular card on their site.

Scroll down to the bottom of the main product details page and you'll see...

Click here for a copy of the full credit card agreement.

bigstu22

Had a look at the t&c's-thanks Yorkshireboy. Can't see anything saying I can't use this for my business purchases. Could they really cancel if they think I'm using it for business purchases??

premierfella

Firstly, let me say that I happily use a Capital One cashback card myself and have personally had no significant problems with it and there is every chance that what you propose to do would work fine.

That said, Section 18 of the T&Cs is the means that Capital One would use to close the account if they were not happy with the conduct. As far as I can see at a quick glance they don't define what "exceptional circumstances" means, but in practice that is a catch-all that they could easily apply if they were not happy with a card being used in the course of a business.

You originally asked if you could be "ABSOLUTELY SURE" that you will still get the 1% on spending by doing this. Heng Leng's answer above is correct.

Even if you got it in writing (for example) from Capital One that they were happy with you using the card for business purposes, you could not be ABSOLUTELY SURE that they wouldn't come up with a different but similar "exceptional circumstance" excuse for closing the account. And if that happens before the January cashback credit, your cashback would be lost.

bigstu22

Hmmm. Considering the cashback amount next January could be substantial, it sounds as though Capital One would have an easy 'out' if they wanted. Unless someone very knowledgable comes on and tells me otherwise, it's back to the drawing board. Thanks for your help guys.

premierfella

Notwithstanding the above comments, and given that Capital One may well have no problem with the card being used for "business" use, the (probably low) risk of Capital One at some point deciding they are not happy with the account conduct and closing the account (forfeiting cashback) is probably worth taking if the alternative is using a non-cashback credit card? Particularly given the amount of cashback it sounds like you would be generating?

YorkshireBoy

premierfella wrote: »

the (probably low) risk of Capital One at some point deciding they are not happy with the account conduct and closing the account (forfeiting cashback) is probably worth taking if the alternative is using a non-cashback credit card?

Setting aside your last point on the alternative, which is perfectly true, I think there's a very good chance their systems will pick up on, for example, a £20K per month spend on a £4K limit and flag it for investigation...bearing in mind the OP's intended use...

However, I will be spending significantly more than my card credit limit. To combat this, I would quite simply make more pay-ins to my credit card than the usual once a month so that I can keep spending.

whatyadoinsucka

give them a call if the unlimited is the same as iphone data usage they'll be a cap :0(

you run an online business buying on ebay, I'm confused