Q: CBA Awards: Earning points when in a positive credit card balance?

[Deewhy]

Considering using my Dia awards card on a purchase that exceeds my limit a few times over. Anyone with experience on earning points on purchases when the balance is in credit i.e. if I was to pre-load the credit card, pay, load, then pay over a number of consecutive days, knowing it takes 2-3 days for each transactions to turn from pending to confirmed, so the account is likely to read as "in credit" each time I go to pay)?

I found this condition in the terms but is it enforced?

"5. The Bank reserves the right to refuse to award points:
• to the extent that any transaction results in the creditlimit (including a temporary limit) on a Member’s Cardaccount being exceeded; or
• to the extent that any transaction is debited againstcredit funds in the Member’s account."

 

[Nutcase]

Considering using my Dia awards card on a purchase that exceeds my limit a few times over. Anyone with experience on earning points on purchases when the balance is in credit i.e. if I was to pre-load the credit card, pay, load, then pay over a number of consecutive days, knowing it takes 2-3 days for each transactions to turn from pending to confirmed, so the account is likely to read as "in credit" each time I go to pay)?

I found this condition in the terms but is it enforced?

"5. The Bank reserves the right to refuse to award points:
• to the extent that any transaction results in the creditlimit (including a temporary limit) on a Member’s Cardaccount being exceeded; or
• to the extent that any transaction is debited againstcredit funds in the Member’s account."

You need to be careful. CBA may, at their discretion not allow you to go into credit. There are many reasons why, however the main reason is chargeback risk. The bank is liable for any chargeback that is legitimate. Should your transaction end up being fraudulent for any reason, the bank would have to cover you at their cost. For example: If you charge up your credit card with $100k and then its skimmed, the bank may be liable.

The non payment of points sits in with this.

My counsel is to call the bank and discuss your plans before you do anything.

Many on this forum will disagree but the bank has the last word on this and do not want to be liable for anything above your limit.

 

[coles525]

I know BW & Nab don't complain if your account goes into credit (ie: $10k+ car deposit / $5k cc limit for example).

Nab even pays you interest on a credit balance. Even if it's a tiny amount.

 

[shadowground]

I used to do this when paying Uni Fees (back in the day when cards were accepted without surcharge) and would pre-load +5/10k as necessary onto my CBA card and never had an issue. Points were also credited without any complaint.

but as stated above YMMV