Withdrawing cash on credit card - ok?

sillystudent_2

I know under normal circumstances you should never withdraw cash on a credit card, but I was wondering whether it would be ok in my situation.

A month or so ago, I bought a £300 computer on my Nationwide credit card, however it proved to be faulty. After a few weeks of hassling the pc company, they finally agreed to refund the money in full, however they ignored my instructions of putting it into my current account and instead have put it onto my credit card.
Here's the problem - because I thought the money would be refunded to my bank account, I had paid off the credit card's balance (£300, pc was only thing on it) I now have a £300 surplus on my Nationwide card.

I was debating whether to ring Nationwide, but then another thought occurred to me - since I'm in credit, theoretically could I not just make a £300 cash withdrawal with my card? I shouldn't have any charges, should I, since I'm not actually borrowing any money? This option would be far preferable to ringing Nationwide, as I ideally need the money within the next week, and they'll probably take ages to refund the money I reckon.

What do you reckon guys?

YorkshireBoy

I reckon Nationwide's systems will automatically apply a 3% (or whatever) cash withdrawal fee.

Your best bet is to ring them and ask for the positive balance refunding, which they'll probably insist on doing by cheque.

The reason the shop put it back on your credit card is so they could recover (some or all of) the merchant fee they were charged for your original purchase.

Bismarck

YorkshireBoy wrote: »

The reason the shop put it back on your credit card is so they could recover (some or all of) the merchant fee they were charged for your original purchase.

never thought of it that way....

unfortunately, the withdrawing of cash is a known trigger for indicating financial hardship and may affect how your circumstances appear to the provider - even though you're in credit...bizarrely.....

PAULUK08

So why do credit card providers give you the option of withdrawing cash?

ldn-100

PAULUK08 wrote: »

So why do credit card providers give you the option of withdrawing cash?

It is a good earner for them.

ICan'tStandIt

sillystudent wrote: »

I know under normal circumstances you should never withdraw cash on a credit card, but I was wondering whether it would be ok in my situation.

A month or so ago, I bought a £300 computer on my Nationwide credit card, however it proved to be faulty. After a few weeks of hassling the pc company, they finally agreed to refund the money in full, however they ignored my instructions of putting it into my current account and instead have put it onto my credit card.
Here's the problem - because I thought the money would be refunded to my bank account, I had paid off the credit card's balance (£300, pc was only thing on it) I now have a £300 surplus on my Nationwide card.

I was debating whether to ring Nationwide, but then another thought occurred to me - since I'm in credit, theoretically could I not just make a £300 cash withdrawal with my card? I shouldn't have any charges, should I, since I'm not actually borrowing any money? This option would be far preferable to ringing Nationwide, as I ideally need the money within the next week, and they'll probably take ages to refund the money I reckon.

What do you reckon guys?

You will be charged a handling fee regardless of whether or not you're in credit and the handling fee could then give you a small balance, which they will charge interest on.

Ring the Nationwide and ask for a "credit balance refund", which they will do either by cheque or onto a bank debit card. As it's a refund from a shop where you used your card for the same amount anyway, there is no reason for them not to do this.

Bismarck

PAULUK08 wrote: »

So why do credit card providers give you the option of withdrawing cash?

sometimes I wonder if it's to test you!

I get CC statement saying I can take a massive amount out in cash....and yet I think that if I do they'd jump up and down and say I was a bad risk.....because I might blow it on silly stuff.....

PedroH

If you are likely to use withdrawals from a cash machine then you need to look at debit cards not credit. Mine charge 99p. That is in this country. That is to encourage people to put pay in to them. Travelling people especially.

simongregson

Phone nationwide and ask them to send a cheque or transfer the excess into your bank account, they should do this as it is obvious where the money came from.

Shops will always refund to card, as they will be refunded the merchant fee, it is also part of their merchant agreement as it reduces the risk of fraud (steal card, buy something, return it for cash...)

The other option is to use your nationwide card for your shopping/petrol etc. for the next month or so, thereby spending the £300. This is the less hassle option, provided you don't need the £300 back now.