'Small Balance Write Off' (Tesco Credit Card)

Milarky

For the second time, I have had a Tesco credit card statement showing a 'nil' balance due following spending of less than £1. (I had used Fastpay to collect a 'security amount' between 1p and 99p used to the verify the card.) They have credited an item described as a 'small balance writeoff'

Let's assume that anything less than £1 is going to be 'written off' in this way. You could then use the card once a month card for normal purchases (How about a newspaper from Tesco?) and pay nothing! Alternatively, you can set it up on Fastpay and collect and transfer the minimum amount of £1.02 (of which £1.00 is available) each month then immediately pay 5p back to Tesco separately via your bank account to bring the statment balance below 100p. Hopefully, this will be credited to 'nil' by Tesco.

As it is a Royal Bank of Scotland brand, does this just apply to the Tesco card, or do other RBS brands process small balances in this way? It would be interesting to know.

Milarky

[Just replying to my own posting!]

It also works for RBS Advanta [now 'Mint'] Cards, I have now found. Spend less than a pound each month, and they will write off the balance, with nothing to pay.

What I did was to pay £1.05 against my council tax (i.e. a 'purchase') online, then immediately transfer 7p from my bank account online to RBS - to get the balance below £1. A bit of a palaver you will agree, but I now have two RBS cards, so can do this at the same time each month. My guess is that all other RBS cards (eg Natwest) probably work in exactly the same way.

How many different cards are available from RBS, anyone i]I believe there are two others - NatWest and RBS Classic[/i?

Cheers

SteveSouth

Do you really think it's worth the hassle for £1 per month ?? you must be really skint

zcaprd7

Hmm - better off just spending 99p a month on stuff?

Rafter

Spotted this too.

Ultimately it saves RBS money because they don't have to issue statements for nil balances month after month.

It also costs them more to process a cheque payment of less than £1 than the money they receive.

Personally wouldn't use it as a gaming strategy though. My time is worth more than the amount I might save!

Milarky

Spotted this too.

Ultimately it saves RBS money because they don't have to issue statements for nil balances month after month.

Actually, they still send out the statement in the post each month - saying 'nothing to pay' - but just don't put in an envelope.

An instance of the

Left Hand --> and the
<-- Right Hand

I think!