Uh-oh: Some SVM gift card transactions coded as cash advance


If you’ve bought gift cards in the past few days from SVM on eBay, keep a close eye on your credit card statement: Doctor of Credit reports that some SVM gift card transactions (perhaps from 12/4 onward) were coded as cash advances – incurring an instant fee and interest with your issuer.

You do NOT want to pay a cash advance fee as if you had taken cash from an ATM

For their part, SVM is claiming that this is due to an error on PayPal’s end that switched their merchant services category, causing the transactions to appear as cash advances. One reader in the comments at Doctor of Credit shared a note from SVM that was promising a $20 PayPal credit to those customers affected, but we haven’t yet confirmed that plan. On that note, SVM claimed that the issue has been resolved and that further cash advance fees shouldn’t be incurred — though I would be wary of buying from them at least over the next few days (and perhaps in general moving forward) unless you have your cash advance limit set to $0. This is not the first time this issue has happened with SVM.

According to Doctor of Credit, this issue was reported from Visa, Amex, and Discover. Again, reports indicate that this issue affected transactions over the past couple of days (perhaps 12/4-12/5). I personally made SVM purchases on 11/28 that did not code as cash advances. However, many readers may have bought gift cards more recently — so let this be a reminder to check your statements to be sure you aren’t affected. If you are affected, I would strongly suggest sending a message to SVM on eBay (and then perhaps following up with PayPal).

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