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    • Alex1987
    • By Alex1987 30th Nov 17, 5:24 PM
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    Alex1987
    'Cash advance fees' and interest
    • #1
    • 30th Nov 17, 5:24 PM
    'Cash advance fees' and interest 30th Nov 17 at 5:24 PM
    Hi all

    I was having a chat with a lad in work today about credit cards and he told me that he had used his new card recently for deposits on gambling sites.

    He said that he had made 5 deposits of £10 and for each one, he was charged £3 - I explained this is probably because his card company would treat it like a cash advance, is this correct?

    What did confuse me however was that he said his statement then showed interest on it. Is this correct? I would have assumed that the cash advance fee was essentially the charge?
Page 1
    • MallyGirl
    • By MallyGirl 30th Nov 17, 5:48 PM
    • 2,098 Posts
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    MallyGirl
    • #2
    • 30th Nov 17, 5:48 PM
    • #2
    • 30th Nov 17, 5:48 PM
    there will be a cash advance fee, plus most cards apply daily interest from the date of the cash advance as well - cash advances are not included in the 'up to 56 days interest free' deal you get with normal transactions.
    I'm a Board Guide on the Debt-free Wannabe, Loans & Credit Cards boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com
    Any views are mine and not the official line of MoneySavingExpert.com.
    • Dobbibill
    • By Dobbibill 30th Nov 17, 6:29 PM
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    Dobbibill
    • #3
    • 30th Nov 17, 6:29 PM
    • #3
    • 30th Nov 17, 6:29 PM
    You are quite correct - gambling, foreign currency and cash advances are all treated as cash withdrawals meaning you pay 3% or a min of £3, plus interest from the date of the transaction.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    A person who never made a mistake, never tried anything new.
    • derps
    • By derps 30th Nov 17, 9:27 PM
    • 102 Posts
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    derps
    • #4
    • 30th Nov 17, 9:27 PM
    • #4
    • 30th Nov 17, 9:27 PM
    He will want to pay it off ASAP as the interest will accrue daily. He would also do well to slightly overpay to avoid trailing interest being accrued while the payment is processed.
    • RG2015
    • By RG2015 30th Nov 17, 10:11 PM
    • 615 Posts
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    RG2015
    • #5
    • 30th Nov 17, 10:11 PM
    • #5
    • 30th Nov 17, 10:11 PM
    The interest, unless otherwise permitted, will commence from the date of the transaction, rather than allowing for a set period of 0%*, which most credit providers will accommodate for normal purchases.

    * 0% interest on standard purchases for an average of 56 days, please refer to your signed credit agreement for exact specification information and exclusions.
    Originally posted by JackM
    Isn't it a maximum of 56 days?
    • msallen
    • By msallen 1st Dec 17, 5:37 AM
    • 595 Posts
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    msallen
    • #6
    • 1st Dec 17, 5:37 AM
    • #6
    • 1st Dec 17, 5:37 AM
    So an average maximum then
    • RG2015
    • By RG2015 1st Dec 17, 6:21 AM
    • 615 Posts
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    RG2015
    • #7
    • 1st Dec 17, 6:21 AM
    • #7
    • 1st Dec 17, 6:21 AM
    So an average maximum then
    Originally posted by msallen
    Ah yes, so it is. Mix up an imprecise mathematical term with an ambiguous language and the inevitable consequence is misunderstanding.
    • RG2015
    • By RG2015 1st Dec 17, 2:03 PM
    • 615 Posts
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    RG2015
    • #8
    • 1st Dec 17, 2:03 PM
    • #8
    • 1st Dec 17, 2:03 PM
    JackM's posts have been deleted thus making some of the responses confusing.

    Their assertion is that 56 days is the average of all banks' period of grace from the first dated purchase on the statement to the payment due date. Hence the maximum period of grace achieved.
    • dresdendave
    • By dresdendave 1st Dec 17, 5:29 PM
    • 672 Posts
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    dresdendave
    • #9
    • 1st Dec 17, 5:29 PM
    • #9
    • 1st Dec 17, 5:29 PM
    Whilst I would never advocate using a CC to fund a gambling account, to minimise the cash advance fee he could have made a £50 deposit and then he could have made 5 x £10 bets. Obviously he would still be liable for the interest.

    Hopefully the situation won't arise again as he can fund future bets from his winnings. If he hasn't got any winnings perhaps he needs to find a less expensive hobby.
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