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cv91915

Discovery IT Card - 3rdQ 5% PayPal Category - What Am I Missing?

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So far this quarter I've put one ~$40 restaurant charge on on my Discovery IT, and it's unlikely I'll use the card again (4 MRs/$ on restaurants on my Amex Gold, and I virtually never use PayPal when I buy things).

 

Why wouldn't I just pay the 2.9% + $0.30 in fees to send TAD ~$1,418 via PayPal, pay with my Discovery card, pocket ~$32, and call this quarter done?  

 

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Am guessing that they know MOST people don't pay in full...and given the APR so many cards tend to have, a bunch of the people likely would take more than a year to pay off that small of a balance.  A year of interest at 25% on an original amount of $1400 generates more than the money people like you would collect through the PayPal bonus. 

 

Think about it...even if it was only an 18% APR, that is still roughly twenty bucks in interest for the first cycle for the idiots that carry a balance. 

 

One other thing to look at, however, is whether they process the PP payment as a purchase or a cash advance...interest on those often starts ticking right away.  May want to make a small transfer at the end of a cycle just to confirm...

 

(I did the same thing for the first WSOP event entry I put on a card this year just to make sure they didn't flip them to a cash advance- they didn't).

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1 hour ago, centex said:

One other thing to look at, however, is whether they process the PP payment as a purchase or a cash advance.

This crossed my mind.  I've used the "Send money..." functionality with my Aviator Silver and it was processed as a purchase.  Haven't found any data points on Discovery.

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7 hours ago, cv91915 said:

Why wouldn't I just pay the 2.9% + $0.30 in fees to send TAD ~$1,418 via PayPal, pay with my Discovery card, pocket ~$32, and call this quarter done?  

That’s basically what I’m doing - but I just won’t be sending it to TAD. 

Plus I only recently got the card, so I’ll ending up making 7% instead of 2%. 

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13 hours ago, DPB said:

That’s basically what I’m doing - but I just won’t be sending it to TAD. 

Plus I only recently got the card, so I’ll ending up making 7% instead of 2%. 

Have you tried this with Discovery before?

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I have done that before, and was going to again, but I have found some of my online retailers I shop at take PP as a payment.  I have made 3 purchases using PP as a payment and then using Disco when I am sent to the PP site.  So far all three have posted as Paypal...merchant XYZ.  I will be checking after statement closure to see if I got the bonus cash back.  If so I will do that all quarter until the end, and then just send the balance of the $1500 cap to DW as outlined.

 

I have done the PP transfer on other cards and was always charged as purchase.  I used to send my landlord the rent this way, as I can usually earn >$1.625/point of redemption on URs.

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9 hours ago, cv91915 said:

Have you tried this with Discovery before?

Not with the PayPal category. But the terms state that you can send money to friends. My plan is to do organic spend for the first 80 days or so of the quarter since I can usually make a few normal purchases via PayPal in a month. I’ll use the send money to friends option for whatever is remaining towards the end of the quarter. 

Last quarter was gas stations, Uber, and Lyft. I almost never use Uber or Lyft. And there’s no way I could $500 per month in gas. So I did some M$ for the final $1000 during the last week of the quarter. The discover app shows that I maxed out the category. The rest of the cash back should post in a couple days when my statement cuts. 

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3 hours ago, DPB said:

Not with the PayPal category. But the terms state that you can send money to friends. My plan is to do organic spend for the first 80 days or so of the quarter since I can usually make a few normal purchases via PayPal in a month. I’ll use the send money to friends option for whatever is remaining towards the end of the quarter. 

Last quarter was gas stations, Uber, and Lyft. I almost never use Uber or Lyft. And there’s no way I could $500 per month in gas. So I did some M$ for the final $1000 during the last week of the quarter. The discover app shows that I maxed out the category. The rest of the cash back should post in a couple days when my statement cuts. 

 

Yeah, the gas stations category is fairly useless for me and DW, since we both work from home, and only drive for errands. In fact, I only purchased gas twice in 2018 for my car, although we fill her car up about 6 times a year since we use it more frequently.

 

I'm curious as to how you managed to M$ this category? Please share.

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1 hour ago, policebox said:

 

Yeah, the gas stations category is fairly useless for me and DW, since we both work from home, and only drive for errands. In fact, I only purchased gas twice in 2018 for my car, although we fill her car up about 6 times a year since we use it more frequently.

 

I'm curious as to how you managed to M$ this category? Please share.

Prepaid visa gift cards. Can be loaded up to $500. Activation fees vary, but the ones I buy are $4.95, so under 1%. Then you can use them for regular purchases or, as I did, use them to buy money orders. 

Disclaimer: There are a ton of variables when doing M$. Not all methods work everywhere, and different cards work differently. So if you, or anyone else, isn’t familiar with it I’d recommend doing a ton of research and ask a bunch of questions in the proper forums before attempting. 

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14 hours ago, DPB said:

Prepaid visa gift cards. Can be loaded up to $500. Activation fees vary, but the ones I buy are $4.95, so under 1%. Then you can use them for regular purchases or, as I did, use them to buy money orders. 

Disclaimer: There are a ton of variables when doing M$. Not all methods work everywhere, and different cards work differently. So if you, or anyone else, isn’t familiar with it I’d recommend doing a ton of research and ask a bunch of questions in the proper forums before attempting. 

Agree with the above.  For me, I can't be bothered with the effort.  I am not going to do the whole go to Walmart and buy MO route (I'd have to be getting 100% cash back before I'd step into that store) and if I just use the GC for regular spend, I am losing another 1.5 URs/$, making the spread not all that beneficial.

 

I may end up doing it this quarter to get the bonus URs, but that is mainly because I am trying to amass enough for travel plans next year.

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6 hours ago, CTSoxFan said:

Agree with the above.  For me, I can't be bothered with the effort.  I am not going to do the whole go to Walmart and buy MO route (I'd have to be getting 100% cash back before I'd step into that store) and if I just use the GC for regular spend, I am losing another 1.5 URs/$, making the spread not all that beneficial.

 

I may end up doing it this quarter to get the bonus URs, but that is mainly because I am trying to amass enough for travel plans next year.

I share your hatred of Walmart. But I pass by one a few times a day. If I go in at 3pm when I’m on my way home, the parking lot is usually empty. And the money center is right by the entrance. 

But in this case, the gas stations by me sell Vanilla brand, which can’t be cashed out at Walmart. So I cashed them in at the grocery store. I did the cash-outs when I had to go grocery shopping. I don’t go out of my way for M$, but I’ll gladly do it if it’s convenient. 

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On 7/11/2019 at 11:27 AM, CTSoxFan said:

I have done that before, and was going to again, but I have found some of my online retailers I shop at take PP as a payment.  I have made 3 purchases using PP as a payment and then using Disco when I am sent to the PP site.  So far all three have posted as Paypal...merchant XYZ.  I will be checking after statement closure to see if I got the bonus cash back.  If so I will do that all quarter until the end, and then just send the balance of the $1500 cap to DW as outlined.

 

I have done the PP transfer on other cards and was always charged as purchase.  I used to send my landlord the rent this way, as I can usually earn >$1.625/point of redemption on URs.

Just to follow up, my statement closed and I did receive the 5% on the purchases, so I will continue to utilize this method for non-category spend with merchants who take PayPal for the quarter.  Not nearly as useless as I first thought.

 

note - we all know the big shocker here is that Disco actually processed the transactions and paid the rewards correctly.

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My concern wasn't with merchandise purchases paid with PayPal... 

 

I was concerned about sending money to someone through PayPal (like you would with Venmo, Zelle, etc.) and using Discovery as the funding source, and having the transaction processed as a cash advance.

 

TfU3XZU.png

 

 

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7 hours ago, cv91915 said:

My concern wasn't with merchandise purchases paid with PayPal... 

 

I was concerned about sending money to someone through PayPal (like you would with Venmo, Zelle, etc.) and using Discovery as the funding source, and having the transaction processed as a cash advance.

 

TfU3XZU.png

 

 

Understand.  Was just reporting on an alternate option to doing that to save the 2.9% fee and the possibility of a CA (although likely remote).  As I mentioned before, I did this with various other cards without issue (processed as charge), but not specifically with Disco... You can also specify it's for payment of goods/services (rather than send a friend money) and the 2.9% comes out of "his" funds rather than yours (you send $1,500 he'll receive ~$1,456), like if you were buying something off Ebay.  Another option is to send a smaller test amount of like $50, make sure it works OK then send the remainder if you can't utilize the feature of paying a merchant with PP.

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