Credit Card Companies That Class Some Account Loading as "Cash"

vicwatson

It's come to my attention that some Credit Card companies take loading money onto some online accounts as a "cash" transaction and therefore you paid a premium for this -

I think there are two parties to blame here and it's not the customers fault

Take Avantcard for example, on putting €10.00 into my Paddy Power account and €10.00 into the National Lottery account I was charged €2.50 per €10.00 PLUS a "finance fee" of 0.04c per €10.00 - so it has in effect costed me €12.54 to put €10.00 onto both accounts, or an additional €5.08 for this.

I say two parties are at fault as ;

1)Why the hell are the credit card company charging this and the "finance fee" and

2)Why aren't we advised by Paddy Power and The Lottery that there may be "extra" charges at the point of using the card, one could then make a decision to perhaps use Visa DEBIT card instead?

The problem is is that as nobody tells you that there potentially might be additional charges you assume there isn't - why would you assume there would be a charge, there isn't when you buy something with your credit card.

Apparently not all Credit Card companies charge this so I'm starting a list to make people aware of the companies that do this so they don't fall into the trap in the future -

Avantcard are one that charge as outlined above

Any others folks?

slimjimmc

Moved to Banking & Insurance & Pensions

Atlantic Dawn

Not heard of this before, did you contact the CC company to see why?

Pablo1802

Atlantic Dawn wrote: »

Not heard of this before, did you contact the CC company to see why?

Nothing new about betting/lotto/gaming transactions made online with a credit card. It is called quasi cash transaction:
http://www.ask.com/business-finance/quasi-cash-929134ba7e79191f
Most of the banks charge cash advances fee, as it is a form of getting cash online, i.e. online casinos etc.
Avantcard/BOI and UlsterBank apply interest on credit card account for such transactions cause cash advances are exempt from interest free period.

Yggr of Asgard

Avantcard clearly calls this out (bold is mine), it's both in their FAQ and also in the T&C of the card:

A cash transaction is a transaction under which you receive cash or a cash substitute by using your card or card number, including foreign currency, traveller's cheques, postal orders, gambling transactions and any electronic transfers of cash.

A Cash Handling Fee is the charge that is applied to your account when you make a cash transaction. A cash transaction is any transaction through which you receive cash or cash substitute by using your card or card number. Examples would be when you withdraw cash from an ATM or bank, when you purchase foreign currency, or when you make gambling transactions.

In addition Lotto.ie is pointing this out in their FAQ:

The National Lottery and most of the main financial institutions do not charge for uploading funds from your credit card to the Play Online wallet. However, it has been brought to our attention that some credit card providers treat this as a cash advance and charge accordingly. We suggest you check with your credit card provider prior to adding funds to your wallet.

As far as I know PTSB is also having the same definition for their visa card, where gambling is classified as cash advance.

vicwatson

Avantcard clearly calls this out (bold is mine), it's both in their FAQ and also in the T&C of the card:

In addition Lotto.ie is pointing this out in their FAQ:

In reality very few people read the T&C and FAQ's, as we all know.

No reason why the likes of Paddy Power or Lottery can't have a pop up to inform you of these potential charges at the point of going to pay with a Credit Card, if your CC company doesn't apply these extra charges then just click the x on the pop up if they do then consider paying by Debit card, simples.

Nervous Wreck

vicwatson wrote: »

In reality very few people read the T&C and FAQ's, as we all know.

That's hardly the fault of you CC company or any companies you make payments to.

Yggr of Asgard

vicwatson wrote: »

In reality very few people read the T&C and FAQ's, as we all know.

No reason why the likes of Paddy Power or Lottery can't have a pop up to inform you of these potential charges at the point of going to pay with a Credit Card, if your CC company doesn't apply these extra charges then just click the x on the pop up if they do then consider paying by Debit card, simples.

So what you are saying is that vendors should display warnings just because you don't ready the T&C of your credit card? I don't want warnings all over, especially pop ups, I want a simple smooth process when paying something.

Never mind that having gambling charges on your credit card might reduce your bank internal credit scoring and result in possible review of your credit line if they happen regularly.

I would suggest your review your avantcard T&C soon because there are loads of nice hidden fees in there which you might not know about.

vicwatson

Nervous Wreck wrote: »

That's hardly the fault of you CC company or any companies you make payments to.

No, but they could make life easier for people, particularly elderly people

Yggr of Asgard wrote: »

So what you are saying is that vendors should display warnings just because you don't ready the T&C of your credit card? I don't want warnings all over, especially pop ups, I want a simple smooth process when paying something.

Yes that is what I am suggesting, it can be a very simple pop up at the point you choose credit card to pay with, it shouldn't be hidden in the FAQ's area of a website

I would suggest your review your avantcard T&C soon because there are loads of nice hidden fees in there which you might not know about.

Such as?