Jay m A

iTrader: (2)

I am the typical "pay full balance at the end of each month" CC customer, obviously much to the displeasure of Barclaycard

The last 2 bills I have had this 'Interest on your cash balance' charge. What is this? I thought its always been 60 odd days free credit. Its the only reason I use the CC, free credit for convenience and all my net purchases.

Looks like its time to change - what are my best options?

And if I do change, can I just not use the Barclaycard? - or will they charge me for non-usage

grrrr

suprabeast

Cash balance is where you take cash out from the cash machine or make a purchase of something like foreign currency, that is not covered by your 60 days interest free. Cash withdrawals and the like are usually subject to a 2% fee plus immediate interest

Jay m A

iTrader: (2)

Ah - those stag do's raise their ugly heads

Is this the same with all CC companies?

suprabeast

pretty much....

PAS

iTrader: (4)

I have a Natwest Mastercard and have noticed this too, only a small amount like 38p. I wondered what it was too, although I have not taken any cash out with it and haven't used to for foreign currency.


Tracey (posting in Paul's name)

Jay m A

iTrader: (2)

38p i wouldn't mind, £8 for using a cash machine twice in Hungary, withdrwing a total of about £130 is a bit of a pisstake if you ask me.

Or am I being tight?

Chrisgr31

Presumably the reason for interest on cash advances is that the credit card company themselves are debited the money immediately.

What's the betting that if you purchase from a retailer using a credit card the card company don;t actually hand over the money for a month or so? If this was the case it wouldn't be the card company giving the interest free but the retailer.

Might explain the logic, but I don;t know the facts!

mart360

56 days interest free.... bollox!!!

you make your purchase....


the statement comes in ....

on it is the purchase and intrest....

how come when my last cc statement came....

balance outstanding £15.00

interst next statement 0.08

yel i payed the full £15.00 and got a bill for interest.


intrest free dont make me laugh


M

RLE

iTrader: (2)

Strange one Mart.

My statement always reads:

Current balance xxx
Minimum payment required xxx
Estimated interest on next statement xxx

The estimation is displayed on the basis that the full balance is not settled within the stipulated period.

Be glad when I get rid of my Barclaycard one though......on the home straight now. Learning not to mod the car on these 12 month free interest cards.

Tracey

That does sound a bit steep, I wasn't aware that they charged amounts like that. Have you queried it, cause sometimes they do make mistakes

Tracey

16vmarc

Spooky!!!

Ive just checked my credit card balance online, i have a direct debit set up, and i have been charged 1.87 @ 1.24% on purchases

little-ginge

If i remember rightly... they charge really ****ty interest rates for cash advances and they charge you to use a cash machine abroad.

I don't think this is just limited to credit cards but some banks also charge for overseas withdrawals on debit cards too...hence why it may be £8!!

Jay m A

iTrader: (2)

I used the cashpoint twice, £2 a pop, then £4 interest on the cash.

The month before I bought some Euros at Gatwick, charged £2.50

Had I have realised this cash balance charge I would have made sure I had funds in the current account.

£10.50 - 3 pints and a packet of crisps!!!

Thanks all

imlach

You're all a credit card company's dream customers
....always at least read some of the T&C's!

Suspect more people are now pulling out money on their credit cards with the introduction of chip & pin.....previously, 95% of ppl probably never had/used a credit card PIN. Now, nearly everyone has a PIN....bet the credit card companies love Chip & PIN now

mart360

eh???

read post #8

i have no outstanding balances on any ccards... so how can i be a dream customer??

dream on... its them nappys,, fried your brain!!!!


LOL

Mart

imlach

Post No.8 -> presumably they gave you an valid explanation when you phoned up to query this 8p, right? Otherwise it'll be cancelled surely

Jay m A

iTrader: (2)

LOL Imlach, because I don't know everything about CC T&C's, I've wasted a good 100 disposables

Oh well at least the times had in Amsterdam and Budapest were well worth the surcharge

douglasb

Ever noticed recently that when you pay with a credit card some places (eg. Comet's) receipts say something along the lines of "There is a 2.5% charge for credit card payments. We have not passed this on to you."

Even if the CC company is not getting any interest off you (or me ), they are still creaming 2.5% off the retailer. Spend a lot on the CC and all these 2.5%s add up. Dream customer!

imlach

I feel for you, but the interest rates & charges aren't even buried deep in the T&C's. Usually on EVERY statement.....

ATMs usually now tell you there'll be a surcharge too, although maybe not outwith the UK yet??

mart360

lol its called 56 days interest free


my ****...... no more cc,s for me (yet)


M

Chrisgr31

That was a scheme dreamt up to try and save VAT. Basically the theory was that as a financial transaction it was exempt from VAT and for the big retailers those 2.5%s would add up to a significant sum.

However a test court case or tribunal case involving Debenhams (I think) confirmed that this was not an acceptable way to avoid VAT.

douglasb

Thanks Chris. I hadn't realised that that it was a VAT avoidance scheme. I just thought that it was good explanation of how CC companies could afford to pay cashback to people who don't pay them any interest.

(Make 2.5% from the retailer. Give the cardholder 0.5%. CC co is still 2% up on the deal, never mind the interest they make from people who don't pay in full every month.)

imlach

Hmm.....doesn't sound like an explanation to me....give them a buzz....I'm sure they can either explain it, or waive it.

MattN

it's not 56 day interest free, it's UP TO 56 days interest free, depends on your statement date and date of purchase. If you had 8p interest on your statement it means you probably didn't pay the balance in time.

ChrisB

The Debenhams VAT case mentioned above:

http://news.bbc.co.uk/1/hi/business/4694631.stm

boomer

From the BBC article:

So the fact that the government should NOT charge VAT on financial transactions in the first place is ignored if it means that they can't screw the consumer for quite as much otherwise

I wonder how much Bliar gave the Judges in backhanders to ensure that they got their way

The next step will be that speed cameras are not generating enough revenue, so they have decided to reduce all speed limits by 50%!!!!

mb