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    • barnos
    • By barnos 17th Jul 17, 6:29 PM
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    barnos
    Santander zero interest charges
    • #1
    • 17th Jul 17, 6:29 PM
    Santander zero interest charges 17th Jul 17 at 6:29 PM
    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?
Page 1
    • YorkshireBoy
    • By YorkshireBoy 17th Jul 17, 6:45 PM
    • 29,533 Posts
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    YorkshireBoy
    • #2
    • 17th Jul 17, 6:45 PM
    • #2
    • 17th Jul 17, 6:45 PM
    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?
    • zx81
    • By zx81 17th Jul 17, 6:45 PM
    • 14,126 Posts
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    zx81
    • #3
    • 17th Jul 17, 6:45 PM
    • #3
    • 17th Jul 17, 6:45 PM
    Presumably the statement shows cash fees and cash interest.

    Can you work out the transaction from the associated interest?
    • YorkshireBoy
    • By YorkshireBoy 17th Jul 17, 6:47 PM
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    YorkshireBoy
    • #4
    • 17th Jul 17, 6:47 PM
    • #4
    • 17th Jul 17, 6:47 PM
    Presumably the statement shows cash fees and cash interest.
    Originally posted by zx81
    It's Santander Zero, so no cash fees, just cash interest.
    • zx81
    • By zx81 17th Jul 17, 6:52 PM
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    zx81
    • #5
    • 17th Jul 17, 6:52 PM
    • #5
    • 17th Jul 17, 6:52 PM
    It's Santander Zero, so no cash fees, just cash interest.
    Originally posted by YorkshireBoy
    I knew that...

    • barnos
    • By barnos 17th Jul 17, 7:40 PM
    • 14 Posts
    • 3 Thanks
    barnos
    • #6
    • 17th Jul 17, 7:40 PM
    • #6
    • 17th Jul 17, 7:40 PM
    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
    • By YorkshireBoy 17th Jul 17, 7:45 PM
    • 29,533 Posts
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    YorkshireBoy
    • #7
    • 17th Jul 17, 7:45 PM
    • #7
    • 17th Jul 17, 7:45 PM
    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.. ;-)
    Originally posted by barnos
    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
    • By chattychappy 17th Jul 17, 11:03 PM
    • 6,401 Posts
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    chattychappy
    • #8
    • 17th Jul 17, 11:03 PM
    • #8
    • 17th Jul 17, 11:03 PM
    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.
    Originally posted by YorkshireBoy
    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
    • By barnos 18th Jul 17, 10:54 AM
    • 14 Posts
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    barnos
    • #9
    • 18th Jul 17, 10:54 AM
    ANSWER provided – however not especially good news!
    • #9
    • 18th Jul 17, 10:54 AM
    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
    • By TadleyBaggie 18th Jul 17, 11:35 AM
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    TadleyBaggie
    It won't be 18% on a daily basis, even payday lenders would blush at that rate.
    • barnos
    • By barnos 18th Jul 17, 12:46 PM
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    • 3 Thanks
    barnos
    Yes – got that
    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. :-)
    • zx81
    • By zx81 18th Jul 17, 12:52 PM
    • 14,126 Posts
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    zx81

    what return would Santander give me on any savings – <1.5%?
    Originally posted by barnos
    But I bet they don't have a default rate of 10-15% on their savings accounts.
    • eDicky
    • By eDicky 18th Jul 17, 1:23 PM
    • 2,921 Posts
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    eDicky
    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 ...
    Originally posted by barnos
    Why would you do that? You pay TransferWise in pounds - it's they who do the conversion to euros. Why not pay the holiday cost in euros directly with your Zero?
    • vacheron
    • By vacheron 18th Jul 17, 1:57 PM
    • 721 Posts
    • 645 Thanks
    vacheron
    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. :-)
    Originally posted by barnos
    If it helps try to think what rate you would be charged if you asked Santander for a customised personal loan of 172 pounds with a 28 day repayment term. Doesn't make the £6 sound too bad does it.
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    • barnos
    • By barnos 18th Jul 17, 2:22 PM
    • 14 Posts
    • 3 Thanks
    barnos
    ok ..ok ... I was going to try to say silent and non-controversial but unfortunately I have to disagree strongly £6 interest on a £172 loan 28 days is utterly OUTRAGEOUS.

    The only reason we even contemplate such figures as being vaguely familiar is because of the payday loan companies with their even higher pay rates.

    The fact is that the banks are being utterly derelict in their duties to their customers by not meeting the need for this service.. at what could best be described as sensible rates.... Which would be what – annual interest rates are – say 1.5% monthly rate of .125%? Okay that's low so let's add in a service charge – EXCEPT I'm already in a service agreement with the credit card company and they're taking a reasonable percentage (one way or another) on every pound I spend.

    The whole financial services sector led by the banks, continues to evade proper scrutiny (and perhaps more importantly proper competition) in the level of service that they deliver to their clients..

    the solution should be to open up the glare of the free market where poor service, poor quality and rip-off outfits would be easily identified and would soon go out of business. But regulation and establishment continue to protect these ne'er-do-wells

    only MHO... but it's all mine and I'm sticking to it
    • eskbanker
    • By eskbanker 18th Jul 17, 2:33 PM
    • 5,808 Posts
    • 5,697 Thanks
    eskbanker
    £6 interest on a £172 loan 28 days is utterly OUTRAGEOUS.
    Originally posted by barnos
    You need to look more closely at what it actually says on your statement, because £6 on £172 over 28 days is clearly not the 18% APR you believed it should be, so either your rate isn't 18% or the charge is for a different amount or period.

    the solution should be to open up the glare of the free market where poor service, poor quality and rip-off outfits would be easily identified and would soon go out of business. But regulation and establishment continue to protect these ne'er-do-wells
    Originally posted by barnos
    It's the other way round - the level of regulation actually generates (at least some of) the costs these companies have to bear. And it is a free market - if you don't like Santander's offering there's nothing to stop you applying for a credit card with a wide range of other providers - vote with your feet not your keyboard....
    • bigadaj
    • By bigadaj 18th Jul 17, 7:02 PM
    • 10,705 Posts
    • 6,993 Thanks
    bigadaj
    ok ..ok ... I was going to try to say silent and non-controversial but unfortunately I have to disagree strongly £6 interest on a £172 loan 28 days is utterly OUTRAGEOUS.

    The only reason we even contemplate such figures as being vaguely familiar is because of the payday loan companies with their even higher pay rates.

    The fact is that the banks are being utterly derelict in their duties to their customers by not meeting the need for this service.. at what could best be described as sensible rates.... Which would be what – annual interest rates are – say 1.5% monthly rate of .125%? Okay that's low so let's add in a service charge – EXCEPT I'm already in a service agreement with the credit card company and they're taking a reasonable percentage (one way or another) on every pound I spend.

    The whole financial services sector led by the banks, continues to evade proper scrutiny (and perhaps more importantly proper competition) in the level of service that they deliver to their clients..

    the solution should be to open up the glare of the free market where poor service, poor quality and rip-off outfits would be easily identified and would soon go out of business. But regulation and establishment continue to protect these ne'er-do-wells

    only MHO... but it's all mine and I'm sticking to it
    Originally posted by barnos
    So if we translate that, you've utilised the evil banks, thinking that by utilising their loss leader you can save a few quid and get one over.

    Having failed to understand what you've signed up to, and the relevant terms and conditions, you've now been charged a moderate amount of money by doing something that you agreed you'd be charged for.

    Nothing to complain about, learn your lesson and move on.
    • Dribiddi
    • By Dribiddi 18th Jul 17, 7:19 PM
    • 54 Posts
    • 22 Thanks
    Dribiddi
    All that for £6.....
    • chattychappy
    • By chattychappy 19th Jul 17, 8:21 AM
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    chattychappy
    We were overdue for an "evil banker" post. I was almost beginning to miss them!
    • bigadaj
    • By bigadaj 19th Jul 17, 9:40 PM
    • 10,705 Posts
    • 6,993 Thanks
    bigadaj
    We were overdue for an "evil banker" post. I was almost beginning to miss them!
    Originally posted by chattychappy
    Though they are evil....
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