Capital One cash advance fee for "betting" transaction

DonnySaver

YorkshireBoy wrote: »

I've not 'joined up' so don't know what it says during that process. However, it seems pretty "clear" from the FAQ what may happen...

Hmm....didn't see that. Don't know why, I'm normally quite good for watching out for that kind of thing. So, it looks like I'm stuffed.

Won't do it again though !:rolleyes:

Ta.

etimbo

:mad:
I've just been caught out by this too. I bought two TFF teams for £10 and then got charged a £3 cash advance fee by Capital One. I phoned them just now and they basically said tough, it's gambling and I should have known as Telegraph Fantasy Football is registered with the Office of Fair Trading as a gambling company.

I complained that a 30% charge for entering a fantasy football game was outrageous and threatened to close the account, to which the agent said "OK then", so I did.

I am astonished, as I have been a loyal customer for a number of years and have put tens of thousands of pounds of transactions through the account and they didn't seem to care less. Good riddance.

leicsmarkyr

etimbo wrote: »

:mad:
I've just been caught out by this too. I bought two TFF teams for £10 and then got charged a £3 cash advance fee by Capital One. I phoned them just now and they basically said tough, it's gambling and I should have known as Telegraph Fantasy Football is registered with the Office of Fair Trading as a gambling company.

I complained that a 30% charge for entering a fantasy football game was outrageous and threatened to close the account, to which the agent said "OK then", so I did.

I am astonished, as I have been a loyal customer for a number of years and have put tens of thousands of pounds of transactions through the account and they didn't seem to care less. Good riddance.

You say you put tens of thousands of pounds through the account; but is this just purchases. Or does it include fees and interest. Companies do not like people (as much as the opposite) who pay their bill in full and earn them no interest as it means they dont get money out of you

YorkshireBoy

leicsmarkyr wrote: »

Companies do not like people (as much as the opposite) who pay their bill in full and earn them no interest as it means they dont get money out of you

I've never understood that statement.

Someone with a £2K limit and spending £1K per month on purchases might make the card provider around £240 in fees at 2%.

Now £240 on £2K is a ROI of 12% gross isn't it?

Even better, since the average balance owed will be only £1K (assuming 56 days interest free), that gives a gross ROI of 24%.

Add in the chance of a missed payment for an additional £12, hard times meaning interest is incurred, and cross-selling opportunities to be had, and I don't think it's too big a problem for the providers.

leicsmarkyr

YorkshireBoy wrote: »

I've never understood that statement.

Someone with a £2K limit and spending £1K per month on purchases might make the card provider around £240 in fees at 2%.

Now £240 on £2K is a ROI of 12% gross isn't it?

Add in the chance of a missed payment for an additional £12, hard times meaning interest is incurred, and cross-selling opportunities to be had, and I don't think it's too big a problem for the providers.

Not sure if the card issuer charges fees etc. Are you thinking of the fee the retailer is charged when s/he takes a credit card. If so that is the acquirer not the issuer. So for example I pay with my Cap1 card in a newsagent who uses Streamline (RBS) as their acquirer. Streamline charge the retailer 2% (or some fee) for the privildge.

YorkshireBoy

leicsmarkyr wrote: »

Not sure if the card issuer charges fees etc. Are you thinking of the fee the retailer is charged when s/he takes a credit card. If so that is the acquirer not the issuer. So for example I pay with my Cap1 card in a newsagent who uses Streamline (RBS) as their acquirer. Streamline charge the retailer 2% (or some fee) for the privildge.

I thought there were fees all the way up the hierrarchy?

leicsmarkyr

YorkshireBoy wrote: »

I thought there were fees all the way up the hierrarchy?

They maybe. It might go
Retailer charged by Acquirer
Acquirer charged by Scheme (Visa / MasterCard)
Scheme charges issuer

But I would expect the acquirer be the highest amount as they the first to charge and would need to make money initially.

Although I think the issuer is charged a start-up fee type of thing for using the Visa or MasterCard fee. So for example random amount, to start a card they are charged £100,000

YorkshireBoy

Assuming the card issuer gets only 25% of any fees, then that reduces their gross ROI to 6% (see my £1K avg balance edit earlier)...which isn't 'bad' considering the possibility of making more. Speculate to accumulate and all that!

I have an £8K card from one of my banks that I've had for years, and despite only using it for one circa £50 CPA per year for many years they've never reduced the limit or threatened to withdrawn it. I agree that in my case they must actually be making a loss on providing it to me.

ShelfStacker_3

leicsmarkyr wrote: »

Not sure if the card issuer charges fees etc. Are you thinking of the fee the retailer is charged when s/he takes a credit card. If so that is the acquirer not the issuer. So for example I pay with my Cap1 card in a newsagent who uses Streamline (RBS) as their acquirer. Streamline charge the retailer 2% (or some fee) for the privildge.

Pretty much everyone takes a cut, including the card issuer. It may or may not fully offset the interest they've lost by extending you the 56-days or whatever free credit - they wouldn't allow such things if it resulted in a loss to them.

YorkshireBoy

ShelfStacker wrote: »

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