Be careful with Robinhood credit card rewards system

Discussion / Conversation Forum
1

I bought a lot of stuff at Costco, including a bar of gold. They denied my rewards and called it abuse without saying why. It’s not in their terms and conditions. I canceled my credit card and chose to use other cards for 1-2% cash back that I can trust.

2

A lot of people have shared experiences here that buying gold at Costco seems to trigger a crackdown on rewards from Robinhood.

3

Nevan said:
A lot of people have shared experiences here that buying gold at Costco seems to trigger a crackdown on rewards from Robinhood.

Can’t buy gold with RH gold, that’s just ironic.

4

Nevan said:
A lot of people have shared experiences here that buying gold at Costco seems to trigger a crackdown on rewards from Robinhood.

Can credit card companies see what we buy item by item now? That’s a bit concerning.

5

@Spence
Sometimes they can if the merchant provides L3 data. Not sure if Costco does, but Kroger stores do.

6

Grayson said:
@Spence
Sometimes they can if the merchant provides L3 data. Not sure if Costco does, but Kroger stores do.

I thought Amex always finds a way to do that and some companies do it to stop gift card purchases.

7

@Barrett
Are you referring to affinity FCU or Affinity Plus FCU?

8

Charley said:
@Barrett
Are you referring to affinity FCU or Affinity Plus FCU?

Regular FCU.

9

Barrett said:

Charley said:
@Barrett
Are you referring to affinity FCU or Affinity Plus FCU?

Regular FCU.

Got it, thanks!

10

@Spence
This isn’t new. L3 data has been a thing since 2018 or earlier. Not every merchant or card uses it, but many do.

11

The truth is you did break the terms by buying gold since it’s considered a cash equivalent. I haven’t had issues with my card and will keep using it.

12

MysteryMaverick said:
The truth is you did break the terms by buying gold since it’s considered a cash equivalent. I haven’t had issues with my card and will keep using it.

Does Robinhood know what you bought?

13

@Tyson
Yes.

14

MysteryMaverick said:
The truth is you did break the terms by buying gold since it’s considered a cash equivalent. I haven’t had issues with my card and will keep using it.

Why is buying gold against the rules? It’s not a gift card.

15

@Flann
It’s basically treated like currency.

16

Montana said:
@Flann
It’s basically treated like currency.

I see it as jewelry no one wants.

17

Perrin said:

Montana said:
@Flann
It’s basically treated like currency.

I see it as jewelry no one wants.

Your view doesn’t change what it effectively is.

18

Tarian said:

Perrin said:
Montana said:
@Flann
It’s basically treated like currency.

I see it as jewelry no one wants.

Your view doesn’t change what it effectively is.

True, it’s still useless.

19

@Perrin
Useless? You can buy it and cash out at a higher value with little risk now.

20

@Perrin
Just saying, it’s definitely worth more than your opinion.