Account in credit: not allowed?

[QF009]

Um ok i got alarmed by some of the posts here so I rang up to check. Call centre dude said my account is running fine, because the credit is not large enough to get my account blocked. He advised that due to the government's anti-money laundering laws large credits (eg over $10k or so) will result in the account being automatically blocked for 5 days whilst a funds reversal is processed.

Account worked fine when I went to book some flights, so all good.

Thanks everyone for the advice.

[angad596]

Um ok i got alarmed by some of the posts here so I rang up to check. Call centre dude said my account is running fine, because the credit is not large enough to get my account blocked. He advised that due to the government's anti-money laundering laws large credits (eg over $10k or so) will result in the account being automatically blocked for 5 days whilst a funds reversal is processed.

Account worked fine when I went to book some flights, so all good.

Thanks everyone for the advice.

Good you checked with Amex but one of my friends worked for amex before and with personal experience, the system for credit cards is known as CAS. If a credit card is in credit it by even a few hundred dollars the card not necessary but can automatically starts to get declined, Amex staff have no control over that. In such circumstances you will need to call amex credit dept / authorization dept to request them let the charge go through.
in short it is a bad idea to have your account in credit as especially overseas transactions can be declined

It does not happen with every card but happens with a lot.
It is even in the T&C of amex that you cannot put the account in credit.
Regarding cancelling the card, it does not happen but a block goes on the account. There is no check sent by Amex as a refund as it will be against the government's anti-money laundering laws . try getting a big amount refunded from amex they will ask you for the bank statement to prove the funds if you wanted a refund

Hope this helps you and enjoy the holidays

[craven morehead]

I have overpaid my Qantas Amex a few times by $3-5k and they have automatically put a hold on it. I have had to ring to get them to free it up and have been told it is a breach of conditions to have card in credit due to money laundering laws ! Usual story on hold for a while and have to speak to 2-3 people in India.
C.M.

[markis10]

My $1500 credit definatley resulted in a closed card, and a cheque, and a new card 10 days later but as I said that was 2004, things have no doubt changed a tad. In terms of money laundering, you have to wonder how gullible we are thought to be, if that was the case then why is the topic to do with Amex only , why does it not affect other providers who as a result will apply similar rules, especially the non bank creidt providers?

[anat0l]

I've had my Amex account in credit occasionally but the maximum it is ever been so is about $100 (on a Gold card which has a $9k limit). Nothing happened here.

[SnowYeti]

New anti laundering charges are getting serious. I changed $500 cash at a wholesale bank in Sydney and I had to fill in a consent form and show 2 forms of ID for the money laundering.

I've had $3k in credit on AMEX before, but that was due to a refund.

But once I put $500 extra cash on it, nothing happened (Plat Cr C).

[one9]

I have put personal CBA & NAB credit cards in credit of significant amounts due to business spending. Once around $40,000 and I have never had problems.

So it seems this is mainly an Amex issue.

[QF009]

Any reason why an account in credit is against the T&C?

I always thought paying on time, having more money in an account, not being at risk of debt etc are a good thing with credit card accounts...

[Commuter]

Any reason why an account in credit is against the T&C?

I always thought paying on time, having more money in an account, not being at risk of debt etc are a good thing with credit card accounts...

I guess it could be anti-money laundering measures, and that it's not designed to be in credit. Does the T&C specifically say you can't have it in credit though.

A bit OT but I miss the good old days when I got 17% interest on keeping my CC account in credit. None seems to pay any interest like that any more.

[Commuter]

New anti laundering charges are getting serious. I changed $500 cash at a wholesale bank in Sydney and I had to fill in a consent form and show 2 forms of ID for the money laundering.

That seems almost overkill - a set of regulations designed to unintentionally inconvenience innocent, ordinary citizens?