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Post Office took a 20p 'Cash Withdrawal' to buy something?
Jlawson118
Posts: 1,144 Forumite
Usually when I post a letter off in the post office, I can use my debit or credit card with contactless for no problem whatsoever. But yesterday, my girlfriend needed an A4 envelope that was 20p, and neither of us had any change on us so I pulled out my credit card to do a 20p payment. Well the lady behind the desk informed me that on stationary, they take payments out as a cash withdrawal, so I couldn't use my credit card. So I knew most of my money at the moment is on my Barclays account, so I pulled out the card, put it in the machine and she said that the minimum on that bank account to withdraw was £5.
I pulled out my First Direct card, entered my pin and it was a success, 20p was debited as a cash withdrawal rather than a payment. I looked on my statement and it did come up as a withdrawal too, not a payment. Afterwards, I paid for her postage too, this time I was able to pay via contactless on my credit card.
I just want to know if this whole 'cash withdrawal' business is normal practice? I don't feel ripped off or anything, but I'm just curious as to if this is normal?
I pulled out my First Direct card, entered my pin and it was a success, 20p was debited as a cash withdrawal rather than a payment. I looked on my statement and it did come up as a withdrawal too, not a payment. Afterwards, I paid for her postage too, this time I was able to pay via contactless on my credit card.
I just want to know if this whole 'cash withdrawal' business is normal practice? I don't feel ripped off or anything, but I'm just curious as to if this is normal?
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Comments
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The Post Office offer banking services for some of the other banks so you can pay-in, withdraw etc.
Have they simply allowed you to withdraw 20p and used that 20p as payment?
Won't you get charged interest from the transaction date for a cash withdrawal?0 -
Not for withdrawing cash from a current account.
I know that
First read, I thought he'd tried the debit card first then used the credit card. Reading it again there are three different cards?
I guess they've just processed a cash withdrawal. Cheaper (for the Post Office) than paying to process a 20p card transaction.0 -
They will receive a fee (from your bank) for the cash withdrawal.
When you pay them by Visa / MasterCard, they will be charged a card processing fee.
Makes no actual difference you cost wise.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
The Post Office offer banking services for some of the other banks so you can pay-in, withdraw etc.
Have they simply allowed you to withdraw 20p and used that 20p as payment?
Won't you get charged interest from the transaction date for a cash withdrawal?
Yeah they offer services for HSBC and First Direct. I couldn't use my credit card, she said it had to be a debit so I won't get charged interest on it0 -
They will receive a fee (from your bank) for the cash withdrawal.
When you pay them by Visa / MasterCard, they will be charged a card processing fee.
Makes no actual difference you cost wise.
I know it didn't make a difference to me, I was just curious as to why they're practicing like this instead of just taking it off as a normal payment like most services would0 -
I know that
First read, I thought he'd tried the debit card first then used the credit card. Reading it again there are three different cards?
I guess they've just processed a cash withdrawal. Cheaper (for the Post Office) than paying to process a 20p card transaction.
So for the 20p I used my First Direct debit card, and then for the actual postage of £2 or something, I was able to use my credit card0 -
Jlawson118 wrote: »I know it didn't make a difference to me, I was just curious as to why they're practicing like this instead of just taking it off as a normal payment like most services would
Is this an independent post office rather than a main crown office - if so, chances are they sell a few ancillary items themselves (such as this envelope) but don't have their oown card machine for those transactions, hence the cash withdrawal.
The actual postage was purchased from Post Office Ltd which is why they were able to take the payment through the main post office terminal.0 -
Jlawson118 wrote: »I know it didn't make a difference to me, I was just curious as to why they're practicing like this instead of just taking it off as a normal payment like most services would
As has been said, you make a debit card payment they get charged a processing fee, it wouldn't make them allowing a 20p payment viable.
You withdraw the money and then pay and they actually make a small amount from your bank for the withdrawal and don't get charged the payment fee.====0 -
Of course, it would mean that if the envelope turned out to be faulty, and they wouldn't refund/replace, you wouldn't be able to do a chargeback, as you technically paid cash.0
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