Personal Finance

Is Lottery ticket purchase on Credit Card a purchase or cash advance?

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  • Apr 12th, 2009 10:31 pm
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[OP]
Deal Addict
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Jun 30, 2004
1364 posts
368 upvotes
Greater Saskatchewan…

Is Lottery ticket purchase on Credit Card a purchase or cash advance?

Is Lottery ticket purchase on Credit Card a purchase or cash advance?
When my lottery subscription came up for renewal, there was a note enclosed that said that some credit card companies consider Lottery subscriptions to be a cash advance and not a purchase.
If it is a cash advance, you'll be charged a "cash advance fee" and a horribly high interest rate.

What's your experience with this? Please state the lottery corporation, the credit card name and issuing bank, and whether or not it is considered a cash advance.
:arrow: Literally by doing nothing at home, you can save lives during the Covid-19 Crisis.
:arrow: Keep physically distant but socially connected.
:arrow: Sask distracted driving - the old fashion way - with alcohol and MJ.
28 replies
Deal Fanatic
Feb 17, 2007
6038 posts
2243 upvotes
Mort Réal
So, you're "subscribed" to a lottery?

And, one of your main concerns is that your CC company may consider this a cash advance?

Hmmm, ok. I could understand the logic of the CC company in that case.
Member
Oct 18, 2006
419 posts
206 upvotes
Toronto
saskwatcher wrote: Is Lottery ticket purchase on Credit Card a purchase or cash advance?
When my lottery subscription came up for renewal, there was a note enclosed that said that some credit card companies consider Lottery subscriptions to be a cash advance and not a purchase.
If it is a cash advance, you'll be charged a "cash advance fee" and a horribly high interest rate.

What's your experience with this? Please state the lottery corporation, the credit card name and issuing bank, and whether or not it is considered a cash advance.
The only time I bought a lottery ticket with my credit card was at Shoppers Drug Mart, and it counted as a purchase. I guess if it's at a retailer, the credit card company can't distinguish between lottery and regular merchandise.
Deal Fanatic
Jul 1, 2007
8521 posts
1678 upvotes
You can subscribe to lotteries now? Can I subscribe to Scotch?
[OP]
Deal Addict
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Jun 30, 2004
1364 posts
368 upvotes
Greater Saskatchewan…
WHO wrote: So, you're "subscribed" to a lottery?
Then I don't have to manually buy tickets for each draw. You can subscribe in Quebec, too. Click on http://loteries.loto-quebec.com/web/jsp ... US.82040.0
for details.
WHO wrote: And, one of your main concerns is that your CC company may consider this a cash advance?

Hmmm, ok. I could understand the logic of the CC company in that case.
The CC's logic is flawed. I do not receive any cash; I get a product/service. If I return/cancel the subscription, I get a credit; I do not get cash. The CCs that treat it as a cash advance, put it in the same category as OnLine Gambling.
:arrow: Literally by doing nothing at home, you can save lives during the Covid-19 Crisis.
:arrow: Keep physically distant but socially connected.
:arrow: Sask distracted driving - the old fashion way - with alcohol and MJ.
Member
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Apr 1, 2009
406 posts
12 upvotes
In the past, many companies would not accept people to purchase lottery tickets using credit cards. Even now, some retailers do not allow it.

When a purchase is made using a credit card, it is considered a cash advance because of AML laws. This because if someone uses a stolen credit card to gamble, then they can get cash back. This is effectively a cash back instead of an actual purchase. This is why it is charged as a cash back instead of a purchase.
Deal Addict
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Mar 30, 2004
4481 posts
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Durham Region
I've always bought lottery tickets and they've always counted as purchases.
Jr. Member
Mar 8, 2009
131 posts
1 upvote
at the store purch; thru online websites cash advance with the cash advance fee
Jr. Member
Jul 20, 2006
163 posts
11 upvotes
CorSter wrote: I've always bought lottery tickets and they've always counted as purchases.
+1

I have been subscribing to 6/49 for the past 4 years and purchased other lottery tickets at variety stores and gas stations, all considered purchase. I use Mastercard from Citibank.
Deal Expert
Mar 23, 2009
20692 posts
6901 upvotes
Toronto
Thalo wrote: You can subscribe to lotteries now? Can I subscribe to Scotch?
Dunno about Scotch, but you can subscribe to wine.

Many wineries will send you 2 bottles of wine per month for < $40, along with descriptions, recipes, etc. The wines range in price from around $10 to $50 per bottle, and those who have subscribed say the price you pay overall is a little bit less than the retail value of the wines.
Sr. Member
Feb 27, 2005
874 posts
66 upvotes
I use to subscribe to Lotto 6/49 with my MC Ultramar card then they changed the way they report the purchase to a "Cash Advance" I stopped subscribing and disolved my works lotto fund.
1
Deal Addict
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Jan 22, 2008
3916 posts
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Calgary
My favorite gas station nearby just adds the amount of my lotto purchase to my gas purchase so it will never be treated as cash advance :lol:
Sr. Member
Mar 6, 2007
648 posts
25 upvotes
This is correct, some of the newer card with updated terms has added lottery tickets/subscriptions to be consider as cash equivalents/cash advance.
Last time I checked:
the MBNA premier rewards platinum plus, DOES consider it as cash advance.
the CIBC dividend, DOES NOT consider it as cash advance.

update note:
When you buy in person, the store might not group the ticket as 'lottery' for the CC company, so it might still be consider purchase.

Inside MBNA account agreement
[QUOTE]
"Cash Advance" means the use of your Account for a loan obtained:
...
3. to buy "Cash Equivalents" (..., bets, lottery tickets, casino gaming chips...) with your card
...
[/QUOTE]
Deal Expert
Mar 23, 2009
20692 posts
6901 upvotes
Toronto
Lame. Since when is a lotto ticket a cash equivalent?
Deal Expert
User avatar
Jan 27, 2004
48935 posts
12412 upvotes
T.O. Lotto Captain
Easy... Buy gift cards @ shoppers drug mart with your credit card.
Purchase lottery tickets from shoppers using your gift card.
Check off the box that allows you to play the same numbers for multiple draws. I believe it allows you to play up to 10 draws... that's good for about a month.
It might not be a subscription, but it'll still save you the trips to the retailer.
Newbie
Mar 24, 2008
38 posts
4 upvotes
Richmond
I'm using the TD rebate visa on bclc.com and have had no problems
Deal Fanatic
Feb 17, 2007
6038 posts
2243 upvotes
Mort Réal
But, by subscribing to the lottery, aren't you just admitting that you're not planning on winning any time soon and will keep needed it? :confused:
Wow, I thought lottery was a game, was supposed to be fun...
I play once everyone 2 or 3 years.
Jr. Member
Apr 25, 2006
116 posts
Western Canada
Thalo wrote: You can subscribe to lotteries now? Can I subscribe to Scotch?
Are you referring to people, whiskey, tape or something else ? :lol:
Jr. Member
Apr 25, 2006
116 posts
Western Canada
WHO wrote: But, by subscribing to the lottery, aren't you just admitting that you're not planning on winning any time soon and will keep needed it? :confused:
No, it just means I want to win more than once. :D

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