Santander zero interest charges

Hi All,

I've been using Santander zero credit card for many months – the ONLY reason I use it is for the fantastic exchange rate whilst abroad and whilst making purchases from within the UK in foreign currency.

For example I work in software and frequently purchase US software products online (priced in dollars).

I have a direct payment set up to pay off the outstanding balance in full every month.

I NEVER use the card for anything that could remotely resemble a cash transaction – such as gaming, lottery or foreign exchange.

YET I've just noticed sneaky interest rate charges at the bottom of some (but not all) of my statements ... I just spoke to their support lines and they talked about some transactions being "quasi-" cash.. but they could not explain any further... fairly typically I got the distinct impression they had absolutely no idea what they were talking about.

Anyone else experience this – Am I missing something?
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Comments

  • YorkshireBoy
    YorkshireBoy Posts: 31,541
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    It'll be to do with the merchant category codes (MCCs) used by one or more of the retailers you're using. If you can identify them maybe you can source alternative suppliers?

    Presumably they can tell you which of your transactions have attracted the cash interest?
  • [Deleted User]
    [Deleted User] Posts: 35,242
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    Presumably the statement shows cash fees and cash interest.

    Can you work out the transaction from the associated interest?
  • YorkshireBoy
    YorkshireBoy Posts: 31,541
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    Presumably the statement shows cash fees and cash interest.
    It's Santander Zero, so no cash fees, just cash interest.
  • [Deleted User]
    [Deleted User] Posts: 35,242
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    It's Santander Zero, so no cash fees, just cash interest.

    I knew that...

    :embarasse
  • barnos
    barnos Posts: 15 Forumite
    Thanks guys .. I'm with YorkshireBoy .. I think they just decided that some of my suppliers are in the Quasi cash category and – if it's of interest – I think they must've recently adjusted these categories because I've been using the same suppliers for two years (only just noticed these interest charges)..

    .... I'm preparing myself for a sternly worded exchange with their complaints department tomorrow ... I have to say, the last time I had any difficulties they were very very accommodating and offered a first class service

    ... I remain hopeful.. ;-)
  • YorkshireBoy
    YorkshireBoy Posts: 31,541
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    barnos wrote: »
    Thanks guys .. I'm with YorkshireBoy .. I think they just decided that some of my suppliers are in the Quasi cash category and – if it's of interest – I think they must've recently adjusted these categories because I've been using the same suppliers for two years (only just noticed these interest charges)..

    .... I'm preparing myself for a sternly worded exchange with their complaints department tomorrow ... I have to say, the last time I had any difficulties they were very very accommodating and offered a first class service

    ... I remain hopeful.. ;-)
    You've misunderstood me, and perhaps should understand why before embarrassing yourself tomorrow.

    It's not Santander who make the decision as to whether it's a cash/quasi-cash transaction...it's the retailer/their merchant acquirer. Santander just process what they're told to process. Google "merchant category code" for further details.
  • chattychappy
    chattychappy Posts: 7,302 Forumite
    It's not Santander who make the decision as to whether it's a cash/quasi-cash transaction...it's the retailer/their merchant acquirer. Santander just process what they're told to process. Google "merchant category code" for further details.

    True. But of course the contract which governs how transactions are accounted for is the one the OP has with Santander.

    If I buy a banana in Bogota and pay by CC, then it MUST be treated as a purchase. It may well be that the merchant presents it as a cash transaction, but I have no knowledge or control over that. I'm entitled to dispute it if it goes through as cash. (Unless they use bananas for money there...)

    It should be possible for Santander to get to the bottom of this.

    In the old days it was so easy. Cash meant ATM or cash advance over the counter. There were no PDQ machines, no widespread online transactions - just manual imprinters. Cash advance vouchers were a different colour and had CASH ADVANCE written on them. You could be in no doubt how the transaction would be processed and you had the receipt to prove it.
  • barnos
    barnos Posts: 15 Forumite
    ANSWER provided – however not especially good news!

    As I'm sure is often the case, I HAD inadvertently used the card for what is apparently described as Quasi Cash ..

    in an attempt to be "money-saving" I used to Transferwise to pay for a holiday rental abroad .. and as the price quoted was in Euros I immediately reached for my trusty Santander Zero card (because of the excellent exchange rate.. avoidance of exchange charges..ect) ... little did I know was that because it was quasi-cash – charged at an interest rate of I believe 18% on a daily basis – EVEN though I pay off the balance in full at the end of every month my £172 charge seems to have incurred about £6 worth of interest charges – frankly ASTONISHING.

    I should have paid the transfer wise amount by debit card - lesson learned I suppose
  • TadleyBaggie
    TadleyBaggie Posts: 6,014
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    It won't be 18% on a daily basis, even payday lenders would blush at that rate.
  • barnos
    barnos Posts: 15 Forumite
    Yes – appreciate 18% is the annual rate and I fully understand that that is to some extent "the norm" it is however utterly, completely, outrageously, unadulterated -ley, and of course scandalously high..

    what return would Santander give me on any savings – <1.5%?

    Interestingly – Santander actually allow me to borrow from them on my mortgage .. at something like 1.75% (it's an old mortgage)

    truth is – I'm not too wound up about this – I am the ubiquitous sick squid ... down ... but I'll get over it.. eventually. :-)
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