Immediate interest to be charged on cross-border credit card purchases?!

nomdeboardie

I got a notice about changes to Bank of Ireland credit card charges today and see that interest will be soon be charged on cross-border purchases from the date of transaction (presumably until the next bill is paid). So if I buy something from e.g. the UK I will incur a fee even if I pay the next bill immediately (which I do by direct debit)? Is there any way around this - would I have to deposit funds into the credit card account in advance?

Now that my Laser card has been replaced with the Visa Debit card, the only reason I would generally have to use the credit card for cross-border purchases is the possible protection it might afford, so I presume I will be using the debit card in most cases from now on. Or looking further into changing bank...

Bank of Ireland: Tara

Hi nomdeboardie,

Thanks for your post.

The recent changes to the terms and conditions on credit cards relates to cash transactions and how interest is applied to them only. Cross border handling fees, purchases and interest on purchases has not changed. 

We've had a question recently regarding these changes and you can find our detailed response here. 

Thanks
Tara

nomdeboardie

Bank of Ireland: Tara wrote: »

Hi nomdeboardie,

Thanks for your post.

The recent changes to the terms and conditions on credit cards relates to cash transactions and how interest is applied to them only. Cross border handling fees, purchases and interest on purchases has not changed. 

We've had a question recently regarding these changes and you can find our detailed response here. 

Thanks
Tara

Thanks for the speedy reply, Tara. However I'm still a bit unclear: by "cash transactions" do you mean paying with the card in a shop while outside Ireland or what is referred to in the leaflet as "cash advances"?

Bank of Ireland: Tara

Hi nomdeboardie,

On a credit card a cash transaction/cash advance is a withdrawal of cash using the card at an ATM and purchases would be using the card to pay for goods or services at point of sale, online or by phone.

Thanks
Tara 

nomdeboardie

Bank of Ireland: Tara wrote: »

Hi nomdeboardie,

On a credit card a cash transaction/cash advance is a withdrawal of cash using the card at an ATM and purchases would be using the card to pay for goods or services at point of sale, online or by phone.

Thanks
Tara

OK, thanks again Tara.

The leaflet I got had 3 entries under "Interest free periods":
(i) Cash advances ...
(ii) Cross Border Handling fees ...
(iii) Purchases ...
Thus it was not clear to me that (ii) referred to! Perhaps you could pass this on to the communications people? Thanks

Bank of Ireland: Tara

Hi nomdeboardie,

You're more than welcome. I'll ensure to pass on your comments to the Communications Team, we appreciate you taking the time to highlight this.

Thanks,
Tara

peannoir

First post on here and its about frigging banking!  Anyway, I was just as confused by the reference to 'cross border handling fees' as it seems are so many others - including the 3 BoI reps I spoke to today.

Finally got some sort of clarity on that issue - basically if Credit Card is used as an ATM card outside of EuroZone, the cross border handling fee will incur interest immediately and therefore will not be included in the interest free period on purchases etc within the Eurozone.  However, purchases made online, or purchases made using credit card outside the Eurozone, will not incur these new charges.  Phew.  As for the rest of the charges, well I am not surprised.  I have closed my BOI account, held since I was 7 years old but am unfortunately stuck with BOI credit card for the moment.  I fully expect that there will be charges placed on entering banks door ways in the not too distant future. :mad: 

nomdeboardie

peannoir wrote: »

First post on here and its about frigging banking! Anyway, I was just as confused by the reference to 'cross border handling fees' as it seems are so many others - including the 3 BoI reps I spoke to today.

Finally got some sort of clarity on that issue - basically if Credit Card is used as an ATM card outside of EuroZone, the cross border handling fee will incur interest immediately and therefore will not be included in the interest free period on purchases etc within the Eurozone. However, purchases made online, or purchases made using credit card outside the Eurozone, will not incur these new charges. Phew. As for the rest of the charges, well I am not surprised. I have closed my BOI account, held since I was 7 years old but am unfortunately stuck with BOI credit card for the moment. I fully expect that there will be charges placed on entering banks door ways in the not too distant future. :mad:

Oh - it's referring to interest on the fee? They charge a fee (for CC use in a foreigh ATM) and then charge interest on it immediately?! :rolleyes: I wonder if they also charge interest on the interest, and so on ad infinitem... :pac:

Thanks for this clarification - I read the description in the link supplied above by the BoI rep, but don't think I understood this aspect until now!

+ Welcome to boards