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  • FIRST POST
    • Jlawson118
    • By Jlawson118 11th Oct 16, 11:02 PM
    • 384Posts
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    Jlawson118
    Post Office took a 20p 'Cash Withdrawal' to buy something?
    • #1
    • 11th Oct 16, 11:02 PM
    Post Office took a 20p 'Cash Withdrawal' to buy something? 11th Oct 16 at 11:02 PM
    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?
Page 1
    • TheShape
    • By TheShape 11th Oct 16, 11:13 PM
    • 452 Posts
    • 229 Thanks
    TheShape
    • #2
    • 11th Oct 16, 11:13 PM
    • #2
    • 11th Oct 16, 11:13 PM
    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?
    • bazzyb
    • By bazzyb 11th Oct 16, 11:50 PM
    • 874 Posts
    • 2,628 Thanks
    bazzyb
    • #3
    • 11th Oct 16, 11:50 PM
    • #3
    • 11th Oct 16, 11:50 PM
    Won't you get charged interest from the transaction date for a cash withdrawal?
    Originally posted by TheShape
    Not for withdrawing cash from a current account.
    • TheShape
    • By TheShape 12th Oct 16, 12:17 AM
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    TheShape
    • #4
    • 12th Oct 16, 12:17 AM
    • #4
    • 12th Oct 16, 12:17 AM
    Not for withdrawing cash from a current account.
    Originally posted by bazzyb
    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.
    • Heng Leng
    • By Heng Leng 12th Oct 16, 12:41 AM
    • 3,501 Posts
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    Heng Leng
    • #5
    • 12th Oct 16, 12:41 AM
    • #5
    • 12th Oct 16, 12:41 AM
    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.
    • Jlawson118
    • By Jlawson118 12th Oct 16, 5:12 PM
    • 384 Posts
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    Jlawson118
    • #6
    • 12th Oct 16, 5:12 PM
    • #6
    • 12th Oct 16, 5:12 PM
    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?
    Originally posted by TheShape
    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 it
    • Jlawson118
    • By Jlawson118 12th Oct 16, 5:13 PM
    • 384 Posts
    • 23 Thanks
    Jlawson118
    • #7
    • 12th Oct 16, 5:13 PM
    • #7
    • 12th Oct 16, 5:13 PM
    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.
    Originally posted by Heng Leng
    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
    • Jlawson118
    • By Jlawson118 12th Oct 16, 5:16 PM
    • 384 Posts
    • 23 Thanks
    Jlawson118
    • #8
    • 12th Oct 16, 5:16 PM
    • #8
    • 12th Oct 16, 5:16 PM
    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.
    Originally posted by TheShape
    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 card
    • bazzyb
    • By bazzyb 12th Oct 16, 7:03 PM
    • 874 Posts
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    bazzyb
    • #9
    • 12th Oct 16, 7:03 PM
    • #9
    • 12th Oct 16, 7:03 PM
    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
    Originally posted by Jlawson118
    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.
    • d123
    • By d123 12th Oct 16, 7:07 PM
    • 5,789 Posts
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    d123
    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
    Originally posted by Jlawson118
    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.
    Dave
    ====
    • cheesetoast
    • By cheesetoast 12th Oct 16, 7:32 PM
    • 200 Posts
    • 118 Thanks
    cheesetoast
    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.
    • eset12345
    • By eset12345 12th Oct 16, 8:03 PM
    • 288 Posts
    • 402 Thanks
    eset12345
    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
    Originally posted by Jlawson118
    stationery etc is a personal sale for the owners of that sub-post office, they pay the fees for any card transactions, which will eat up that whole 20p, so they are essentially giving you a free envelope, it probably even costs them more than the cost of that envelope.

    postage income is for royal mail, and they pay the fees for card payments.
    • Jlawson118
    • By Jlawson118 12th Oct 16, 10:48 PM
    • 384 Posts
    • 23 Thanks
    Jlawson118
    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.
    Originally posted by bazzyb
    Yeah I live in a very little village and it is a little post office so that would make sense
    • Jlawson118
    • By Jlawson118 12th Oct 16, 10:49 PM
    • 384 Posts
    • 23 Thanks
    Jlawson118
    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.
    Originally posted by cheesetoast
    I never thought of it like that. Though I'm hardly going to return an envelope for a refund..
    • reclusive46
    • By reclusive46 14th Oct 16, 4:53 AM
    • 2,679 Posts
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    reclusive46
    Its basically the same process that retailers use to process Debit in the United States. Its processed as a cash withdrawal over one of the ATM networks. Thats why in the US even if you use a debit card a retailer will say Debit or Credit (Debit basically means ATM network and Credit meaning process the transaction over Visa/MasterCard/Amex/Discover etc.)

    I've seen some foreigners get caught out by that in the US and saying debit when using their foreign debit card and end up getting charged a cash withdrawal fee.
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