Credit card interest - Gambling

Katchit

Just got my credit card bill, Tesco, and my transactions with Boylesports have been charged interest, even though the previous bill was fully paid. When I phoned Tesco, they advised me that all gambling transactions are now treated as cash withdrawls rather than purchases and subject to interest - apparently the government made this ruling a couple of months ago - has anyone heard of this ?

mickc

is this an english credit card or irish?

dont remember being charged any interest but i'll have a closer look at my statement.. although i try to only withdraw not deposit!!!

Bluetonic

Katchit wrote:

has anyone heard of this ?

Fairly common practice for a while now by the credit card issuers.

Sizzler

Never heard of it, but another trick is to lodge the money and withdraw it then practically straight away, most credit card companys recognise the credit on your statement as a payment and makes it look like you have paid your bill when you havent. So for example, your bill is €500, lodge €500 into your online bookie....ten mins later, withdraw it and hey presto you have made a payment Not sure how useful this is going to be though in view of what the OP has said

HiCloy

Bluetonic wrote:

Fairly common practice for a while now by the credit card issuers.

Are you sure?

I checked my statement and no interest paid, I've deposited money to Ladbrokes and Victor Chandler in the last few months

Bluetonic

HiCloy wrote:

Are you sure?

Yes I am sure, some of the credit card providers have been doing this for a good while.

It was posted about on www.askaboutmoney.com sometime last year (last April) and here'sthe post in question

http://www.askaboutmoney.com/showthread.php?t=26505

Bluetonic

Sizzler wrote:

most credit card companys recognise the credit on your statement as a payment and makes it look like you have paid your bill when you havent.

AIB's Standard VISA never did via Paddy Power. I remember querying it in September 2004 with them.

Sizzler

Bluetonic wrote:

AIB's Standard VISA never did via Paddy Power. I remember querying it in September 2005 with them.

MBNA do

Bluetonic

Sizzler wrote:

MBNA do

They are the same culprits charging interest from day one as per the link above!

Colonel Sanders

MBNA have never charged me a cash withdrawal fee for a gambling transaction

Colonel Sanders

how about everyone posting which credit card provider they deal with and whether they do or don't charge this fee?

I was sent a statement just today by MBNA on which there are 4 deposits to online bookmakers accounts (bet365, paddypower and ladbrokesx2). Yet I have not been charged any cash withdrawal fees or interest on these transactions. Not sure why I haven't been charged but others using MBNA have.

Bluetonic

Colonel Sanders wrote:

Not sure why I haven't been charged but others using MBNA have.

Many different card 'flavours'.

Does everyone use a credit card? Personally I find the Laser/Maestro card much handier with regards to cash flow.

Colonel Sanders

I use my laser for betfair as they charge a 1.5% fee for credit cards. I agree its handier to use laser but some of the UK bookies don't accept them and some accounts I have were opened before I had a laser card so I've just continued to use my credit card for these accounts.

seand333

ive been using a standard aib mastercard for my paddypower account over the last two years and i've never been charged any interest.

imeatingchips

I've been using a pigsback mbna card on:
paddy power
pokerstars
betfair (betfair charge you 1.5% for depositing with a credit card but that's a different kettle of fish)
and have never been charged interest.

Murta

Katchit wrote:

Just got my credit card bill, Tesco, and my transactions with Boylesports have been charged interest, even though the previous bill was fully paid. When I phoned Tesco, they advised me that all gambling transactions are now treated as cash withdrawls rather than purchases and subject to interest - apparently the government made this ruling a couple of months ago - has anyone heard of this ?

You're right. I've just checked my last statement. Buggers. When did they decide to do this? Each month, there's a crappy flyer included. Yet, they never said that they were gonna treat gambling transactions as cash advances.

Tesco visa card are underwritten by Royal Bank of Scotland. These guys also own Ulsterbank and First Active. So expect the same with these credit cards. RBS are imposing all of their "master" polices on all their companies.

Murta

Can anyone confirm whether or not bank of ireland visa and aib visa treat gambling transactions as cash advances?

As soon as I find a decent credit card provided, I'm shredding tesco one. It's hard enough to come out on top after regular punting (week in / week out) without profit margin being reduced. I tend to withdraw money from PP and co. when I win rather than leave it sitting there. The reason for this is that I have approx. 10 different online accounts. When betting, I use whichever firm offers the best odds or special. I don't like to leave money sitting there as you never know when one of them will go bust.

imeatingchips

as a matter if interest, if you had a positive balance on your credit card and deposited money would that be still classed as a cash advance?

Bluetonic

Murta wrote:

Can anyone confirm whether or not bank of ireland visa and aib visa treat gambling transactions as cash advances?

Not being smart but only Bank Of Ireland & AIB will give you a definitive answer.

Bluetonic

imeatingchips wrote:

as a matter if interest, if you had a positive balance on your credit card and deposited money would that be still classed as a cash advance?

No.

Colonel Sanders

Bluetonic wrote:

No.

some cards still charge a cash advance fee if you withdraw cash from an ATM even if you're card is in credit. In fact I think most do. There is a threadstarted by yours tryuly on the banking and investment pages with a link telling you who do and do not charge this fee when a card is in credit

Katchit

I've been in touch with the Financial Regulator as this didn't form part of their recent costs survey - their reply "As you are already aware, credit card transactions are either designated as cash withdrawals or as purchases. Interest is then applied based on this designation. The designation is made at the point of sale by the retailer. If the retailer processes the transaction as a purchase then that is passed onto your credit card company as they charge the relevant rate of interest. " - so back to Boyles !

badbrian

I noted on my last Tesco bill that I was charged Cash Advance Fees for any betting transactions. I rang up and they credited them back.
This month I did notice that they charged me €0.98 interest. I will be expecting to have that credited back as well.

hiscan

i use an ulster bank zinc card for pp and boylesports and i dont get charged interest i pay my bill in full every month does that make any difference?

qzy

I use both an AIB & MBNA platinum card and have never been charged interest on either of them for gambling....