I'm still having this issue. When I called Citi Bank about this, I was told that everything looked fine on my card, but she was aware of this being a problem. She further suggested that using a card through PayPal may result in it being viewed as a Cash Advance and read me a canned statement of how much money that would cost me. She had no suggestions on how to determine if that was what was happening, or what vendors through PayPal are doing that. For now, I am not using PayPal at all. They need to solve this.
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