I think my credit card company is shafting me

judderman62

Hi All

Looked at my credit card statement on line the other day and found a charge of £2 plus 11 pence interest for a cash advance.

Ehmmm I have never had a cash advance or ATM withdrawal with any credit card in my life.

On ringing them it tuns out this was a purchase of some foreign currency from Travelex and they are trying to tell me this is a cash advance.

In my book this is no more a cash advance than buying a loaf of bread is a cash advance.

Am I on my own in this ?

Would I be likely to get any joy from the banking ombudsman ?

Thanks for any replies and a happy Christmas and New Year to all

Judderman62

Moglex

They will consider it a cash advance since you have used your card and got cash, albeit foreign cash, in exchange.

The reason they do this is because they will have some special deal with the company that you are buying the cash from whereby they only charge them a much smaller percentage of the transaction value, and thus do not have the income to finance the interest free period that the cash advance fee is designed to offset.

So, in this case, they are not really doing anything underhand.

MORPH3US

To be fair, it is a cash advance although you should have been warned when you purchased.

Ring them up and complain, if its the first time its happened they will refund the charge!

M

judderman62

Thanks for the replies guys

J

Woby_Tide

judderman62 wrote:

In my book this is no more a cash advance than buying a loaf of bread is a cash advance.

I wish other countries did use bread as currency, could save a fortune

innovate

You'll probably find that your T&Cs say that buying foreign currency gets treated as a cash advance.

Rafter

Some banks treat gambling transactions in this way too.

It is all to do with how much the banks charge travelex and also the fraud costs that all card users pay indirectly.

The best way to get foreign currency in the future is to use a Nationwide debit card at the airport when you arrive next time - no charges and a much better exchange rate too.

Good luck.

R.

The_Boss

I've bought gift vouchers a few times and not been charged a cash advance on my card. But as stated, buying dosh, even if its travellers cheques, will incur this charge.

King_Of_Fools

The_Boss wrote:

I've bought gift vouchers a few times and not been charged a cash advance on my card. But as stated, buying dosh, even if its travellers cheques, will incur this charge.

Gift vouchers are different because they cannot be exchanged for cash.

No_6

You can use a '&morecard' to buy
travel cash/cheques (not Sterlin cheques)
from http://www.fxcorporation.co.uk/marksandspencer/
with no cash fees.

Regards
6

basill

I know its from south of dover but foreign currency is probably roughly equivalent to coin of the realm.

Oh yes they are shafting you, unless you take care this is how they make their profit.

These forums are well worth reading, if you pay attention you will not be trapped again!!


B