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Stamp duty on credit cards

  • 13-04-2016 6:11pm
    #1
    Escapees
    Registered Users, Registered Users 2 Posts: 662 ✭✭✭


    I heard somewhere before that you only get charged stamp duty on credit cards if you use them so I avoided using mine for the past year, only to find out that you do actually still get hit with the stamp duty! I'm thinking at this stage of just closing the account but am worried that I might need it for booking something in the future - although my debit card seems to be accepted everywhere these days (even by Paypal). Is there any good reason not to close the account if I have savings and don't ever have need for a credit or cash advance? Also, will I get hit again with the stamp duty for 2017 if I close the account in the morning?! Can't believe it was 30 euro and not something like 5 or 10!!


Comments

  • #2
    Mongfinder General
    Registered Users, Registered Users 2 Posts: 1,992 ✭✭✭Mongfinder General


    Escapees wrote: »
    I heard somewhere before that you only get charged stamp duty on credit cards if you use them so I avoided using mine for the past year, only to find out that you do actually still get hit with the stamp duty! I'm thinking at this stage of just closing the account but am worried that I might need it for booking something in the future - although my debit card seems to be accepted everywhere these days (even by Paypal). Is there any good reason not to close the account if I have savings and don't ever have need for a credit or cash advance? Also, will I get hit again with the stamp duty for 2017 if I close the account in the morning?! Can't believe it was 30 euro and not something like 5 or 10!!

    It gets worse. You'll get hit for €30 again when you go to close the account off. Best solution for you is to get a prepaid credit card if you are travelling just in case you're debit card doesn't work for some reason


  • #3
    Escapees
    Registered Users, Registered Users 2 Posts: 662 ✭✭✭Escapees


    Mongfinder General wrote: »
    It gets worse. You'll get hit for €30 again when you go to close the account off. Best solution for you is to get a prepaid credit card if you are travelling just in case you're debit card doesn't work for some reason

    Even if I close the account as soon as possible?! Will try contacting my bank this week...


  • #4
    rsl1976
    Registered Users, Registered Users 2 Posts: 831 ✭✭✭rsl1976


    As far as I know you have to cancel it before April to avoid getting charged for the year.


  • #5
    Nervous Wreck
    Closed Accounts Posts: 16,115 ✭✭✭✭Nervous Wreck


    Escapees wrote: »
    Even if I close the account as soon as possible?! Will try contacting my bank this week...

    Yes. GSD is charged in arrears. Here's an example:

    5th May 2014, you open a CC account.
    1st April 2015, you pay your GSD for the period covering 5/5/14 to 31/3/15.
    1st April 2016, you pay your GSD for the period covering 1/4/15 to 31/3/16.
    2nd April 2016, you close your CC off. You pay your GSD for the period covering 1/4/16 to 2/4/16.


  • #6
    Terrontress
    Registered Users, Registered Users 2 Posts: 3,918 ✭✭✭Terrontress


    It is a ridiculous tax in a modern society. The banks are all in favour of it because people won't close their accounts due to the complicated stamp duty procedure meaning new entrants are reluctant to enter the market.


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  • #7
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,957 Admin ✭✭✭✭✭Toots


    It's the Debit card tax that you don't get charged if you don't use it, AFAIK. The credit card tax is a pain alright. I forgot it was due this month and had made a large purchase on the card, then the tax hit before my transfer from my bank account reached the card, and it put me over the limit. I got charged €7.50 for the pleasure. :(


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