Egg credit card payments question

shefmot

michael19 wrote:

Paypal was set up by EBAY to help people pay for goods electronically.

Michael

Actually no, Paypal was founded in 1998[1] and was bought by eBay in 2002[2] for $1.3 billion in stock, and so ends todays Internet history lesson!

shefmot

[1] http://www.paypal.com/cgi-bin/webscr?cmd=p/gen/about-outside
[2] http://www.paypal.com/html/press/070802APEbayBuys.html

Milarky

Dagobert wrote:

Hello,
Sorry if this has been discussed elsewhere already, but the forum search is currently not working.

I have only just detected that some credit cards can be paid off with a debit card.

I have set up my Egg green and Egg Money cards with a minimum payment by direct debit in order to comply with their T&Cs. However, I always pay my cards in full but prefer to do this "by hand".

Question 1
How many days before the direct debit date does a payment need to be received in order for the DD not to take place?

Question 2
How many days in advance does a direct debit card payment have to be initiated? (For instance, MBNA credits a debit card payment on the following working day.)

Question 3
I received my Egg Money card a couple of weeks ago and have been spending on it since. The "About your cards" page shows my next payment date as 2nd Dec. Does that mean that the current balance is due to be paid on 2nd Dec? For the Egg green card, I receive a statement weeks in advance. Can anyone kindly explain the Egg Money payment cycle?

Agree with what has already been said to 'question 1' [except it should be five 'working days' just to be clear - which is at least one week before the due date or the DD amount is unaffected. Also, I am aware that Egg can disregard its own deadline of five days and still collect the original amount!]

On 'question 2', a debit card [not a 'direct debit card', which I assume was a mistake] payment takes effect the same day - which is one day quicker than MBNA's - and can be seen applied to the account the following day. This is really good of Egg and means that you can wait until the morning of the minimum payment - provided you can see it leaving your bank account as expected - and then make a balancing payment from known funds. This need not all come from the same bank account but it must be from an account which you have already added to the Egg 'accounts address' book rather than 'any old' debit card as MBNA would allow]

On the 'Egg Money payment cycle', as far as I understand you only make a payment if there is a debit balance on the statement. As EM can be loaded with credit balances, they won't call for payment in such circumstances.

Alfie_E

Dagobert wrote:

…when using a credit card for a PayPal payment, does PayPal classify it as a purchase or as a wire transfer?

I assume you mean “cash advance”, and not “wire transfer”. See PayPal’s help page covering the question “…will I get charged a cash advance fee?” If PayPal put a transaction through one of the card networks as a cash payout, they won’t get charged for it. With the exception of Switch (UK Maestro), the charges go to the card issuer, then usually on to the card holder. But, of course, PayPal still take their fee.

Dagobert

Milarky wrote:

On 'question 2', a debit card [not a 'direct debit card', which I assume was a mistake]

Yes.

Milarky wrote:

On the 'Egg Money payment cycle', as far as I understand you only make a payment if there is a debit balance on the statement. As EM can be loaded with credit balances, they won't call for payment in such circumstances.

On the due date, you need to pay the debit balance of your last statement. The statement date is approximately two weeks prior to the payment date.

In my case, I had received the card shortly after what would've been the statement date (18th Nov) had I had the card. On the About your cards screen, the next payment date was shown as 2nd Dec even though no payment will be due because no statement has been generated yet.

Dagobert

Alfie_E wrote:

Dagobert wrote:

…when using a credit card for a PayPal payment, does PayPal classify it as a purchase or as a wire transfer?

I assume you mean “cash advance”, and not “wire transfer”. See PayPal’s help page covering the question “…will I get charged a cash advance fee?”

With purchase and wire transfer, I was referring to Egg's terminology. (This was the terminology the Egg advisor used on the phone.) As far as Egg is concerned, there are only these two transaction types. And only for purchases do you get cashback.

This still leaves the question whether PayPal put the transaction through as a purchase when debiting the credit card to pay for, for instance, an ebay purchase.

dc

AFAIK Paypal payments go through as purchases.

I dont have an EM card, but have used Paypal a lot with other cards. With Amex it goes through as a Dollar purchase though and attracts an exchange fee.

Alfie_E

Sorry Dagobert, I guess that could have been clearer, but I didn’t realise you were referring to cash-back. If you use your Egg card through PayPal to make a purchase, it’ll be classed as a purchase, just the same as if you’d walked into Tesco and used it. So, you get cash-back. However, if you’re just using it, say, to send money to a friend, without actually buying something, you probably won’t get cash-back.