WARNING: CREDIT CARD CASH WITHDRAWALS

MSE_Martin

Cash withdrawal interest rates tend to be much higher that normal rates plus you pay interest even if you pay the card off in full.  

With the advent of Chip & Pin, it’s likely you’ll know more credit card pin numbers, don’t be tempted.  Worst still, Capital One now has a frankly immoral new policy, I was interviewed about on Radio 4 on Saturday (Moneybox article or Moneybox interview)  

Also there is further information on the 'cheapest way to buy overseas article' while it won't seem immediately relevant, it discusses cash withdrawals overseas, and it works exactly the same way here.

To discuss this, click reply

System

Martin,
Do you happen to know what exchange rate L & V use?
I presume Nationwide use the Visa one.

Regards Scat

Milarky

Martin,
           Do you happen to know what exchange rate L & V use?
 I presume Nationwide use the Visa one.

Regards Scat

Ask them!

[with apologies for acting like a Moderator!]

Galstonian

All cards just use the rate from Visa, Mastercard etc.. depending on what type of card it is as well as any additonal charges for transactions in foreign currencies.

With L&V I understand they have zero loading (not sure if that is worldwide though) making it just whatever rate it is for the type of card it is.

Always watch out for differences in rates and treatment for cash and purchases and also how amounts are then paid off.

System

They did that trick on me. I was so outraged I paid the card debt off immediately and cancelled the card and destryed it. Got a Halifax One instead, much better conditions anyway-

System

Martin
Just fallen foul of this con from Capital One Circle card. In April we went to Holland, withdrew £100 approx. in Euros and although my account is cleared each month by Direct Debit, I have incurred cash withdrawal credit charges ever since (£2.00 transaction fee and £1.55 interest) each month following. This is because as you use the card for normal transactions the monthly DD paythem off first, at the end of each month the cash advance remains outstanding and interest is charged on this.
The way to stop this is to completely stop using the card for a 6 week period to clear everything......what a con.
After repeatedly contacting the "scripted" Indian call centre - the very worst customer service I,ve come across, I finally got transferred to someone in the UK. If I pay enough to put my account in credit i.e. two months spend then he has promised to credit any interest payments!!!
Watch out for this one!

System

Saga VISA (operated by Liverpool Victoria Banking) have just notified me of a very good deal for obtaining cash advances from cash machines.
According to their leaflet, "Unlike most other credit cards, between 1 July and 31 December 2004 you will be able to use the Saga Visa Card to make withdrawals from cash machines without incurring a fee - both at home and abroad. This is because we will be waiving our standard 1.5% handling charge."
Better still, it goes on to say, "In addition, because we do not start charging interest on the transaction straight away, you can receive up to 56 days of interest-free credit following the withdrawal ... providing you clear your account in full by the payment date."

Sounds good to me!

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Walt

System

Not such good news from Smile bank! They have just emailed me with the following unwelcome information:

"As a subscriber to the Banking Code, we'd like to remind you about the rate of commission and the charges applied if you use your smile debit and/or smile Visa credit card abroad.

If you use your card(s) to either make a purchase or withdraw cash abroad, in any foreign currency, it will be converted to Sterling. This will be calculated at the wholesale market or government mandated rate of exchange. A foreign transaction fee of 2.75% of the transaction value will be included in the amount exchanged. This will be based on the date the transaction is debited from your account, not the date that the transaction is made.

Cash withdrawals abroad also have an additional cash advance fee of 2% (minimum £2). This will appear as a separate charge on your statement."

Sheer usury! And how they can justify charging 2% (minimum £2) to withdraw cash from your own current account with a DEBIT card is quite beyond me!
>:(

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Walt

philcdav

They did that trick on me. I was so outraged I paid the card debt off immediately and cancelled the card and destryed it. Got a Halifax One instead, much better conditions anyway-

Sorry Andreas, Halifax is no better. !!

We bought £500 of euros in May via Halifax VISA credit card at local travel agent (good rate haha). We paid off the bill in full at end of June but got charged the following ...

£10 transaction fee, £6 interest in July, £2 interest in August and there is 6p to pay in September bill.

We complained but were refferred to the small print regarding 'daily charge for cash withdrawal'.

Wiser next time though

regards - Phil

musicman1951

What a pity more people can't have a SAGA card... Not only are genuine cash-withdrawals free of charges (from a machine), and they let you have interest free credit on cash until the pay-off day, but this is one of the few cards which actually let you have a credit-balance! They recommend you 'top-up' before taking it abroad and use it like a 'free' savings account. And their rate of interest on saved money? 4.5% which is more than many genuine Savings accounts!! Other credit cards (eg MBNA) positively discourage 'savings' as it can appear to be money-laundering! What rubbish! Surely it's because they wouldn't make any profits if people actually used them as Minus-Credit Cards!

melon58

When we have withdrawn cash from machines abroad, a message appears asking if we want the exchange rate in sterling or euros, never know which one is the best to choose, any advice?