New Halifax Cashback Debit Card launches Feb

MSE_Martin

With regard to S75 and Visa Debit.

I am checking this out at the moment. I would be very surprised if S75 was extended to Visa Debit cards as it is consumer credit laws. HOWEVER it maybe Visa itself says "we will offer a similar protection as S75" which has no legal basis but is an additional customer service.

A similar example would be you have no legal right to take goods you don't like back to M&S and get a refund, but it is a protection it offers.

Paul_Varjak

MSE_Martin wrote:

With regard to S75 and Visa Debit.

I am checking this out at the moment. I would be very surprised if S75 was extended to Visa Debit cards as it is consumer credit laws. HOWEVER it maybe Visa itself says "we will offer a similar protection as S75" which has no legal basis but is an additional customer service.

A similar example would be you have no legal right to take goods you don't like back to M&S and get a refund, but it is a protection it offers.

I believe your assumptions are correct, Martin. S.75 only applies to credit transactions (whether by credit card or otherwise). Visa debit cards are clearly not providing credit so S.75 does not apply. However, VISA debits cards do offer protection similar to S.75 (at least according to the Working Lunch programme).

I currently have a Halifax current account with a Switch card, and a Halifax credit card. It may be worthwhile applying for the Moneyback current account with 1% cashback on debit card purchases - particularly if they give me a VISA card to replace the Switch card.

You have to credit the account with at least £1,000/month for a whole year to get cashback and the overdraft rate on the moneyback account is higher than the authorised overdraft rate on the standard current account. Cashback is payable annually, and you do not get it back if you close the account before the annual cashback is paid.

The standard Halifax bank account gives 3.04% interest (again assuming you pay in at least £1,000/month). The Moneyback account only pays 0.5%. So you have to judge for yourself which is best. I guess using a cashback credit card and the standard Halifax account is better than using a debit card with the Moneyback account.

But, if you have no credit card, The Moneyback account could be a best buy if you spend a lot using a debit card - I guess it would easliy beat the A&L 5% current account!

The cashback does operate on purchases overseas but I do not know if this would change your recommendations on the cheapest way to spend overseas.

MSE_Martin

OK I've been digging on this and spoken to APACs (the main parent organisation for all these things) it's answer is:-

The official industry (and legal) line is that S75 applies to credit
card transactions and not those made by Visa debit.

Where the discrepancy may be is that HBOS
may have opted in some of its cards for legal reasons (their new
cashback deal on debit cards comes to mind) as there is a precedent for
that. One of an other bank's (Lloyds) various debit cards is
caught by S75 because of how they've defined it.

Tony_H_3

Just seen an ITV advert for the Halifax Cash Back Debit Card!!

tifosi

MSE_Martin wrote:

The official industry (and legal) line is that S75 applies to credit
card transactions and not those made by Visa debit.

Where the discrepancy may be is that HBOS
may have opted in some of its cards for legal reasons (their new
cashback deal on debit cards comes to mind) as there is a precedent for
that. One of an other bank's (Lloyds) various debit cards is
caught by S75 because of how they've defined it.

Martin,

could you please give some clarification on what Lloyds have put in their definitions that brings them under S75?

I'm just about to try and chase a claim due to act of fraud where a company failed to supply goods (and basically had no intention of doing so)

Would really appreciate any help you could give me!

regularsaver1

I'm coming up to my anniversery of using Moneyback (didn't have to apply for new account, just transfered my existing one over) - and have been told I'm getting around £50 - I don't think thats too bad, but in fact it actually makes me realise I'm spending too much on my debit card in purchases :S

and ps i know that Halifax helped a lady who used her visa debit card to buy something of the net that she did not receive, claim her money back from them

moneysavingobsessive

I think that its possible to open both the A&L and barclays current accounts and use the overdrafts to fund the accounts. E.g. set up 2 standing orders, 1 to move £1000 from barclays to A&L and one to return it immediately. You could then use the remaining credit to pay off any expensive debt, or (as I hope to do) pay into the 10% A&L regular savings account.

Say you get £2000 overdraft for each a/c, pay £1000 from barclays into A&L and then move the £1000 a month between the two, at the end of 12 months, you would have £3000 in the 10% savings account, and be £2k overdrawn with A&L and £1k overdrawn with barclays.

Paying off the debt with the savings means a net profit of the interest.

Off course you could be really cunning and put the additional credit that is unused in months 1-11 in a savings account and drip feed it in, thus making even more interest...

regularsaver1

I received my £36 this week, meaning I spent £3600 and not muhc to show for it

but not bad return

kenshaz

regularsaver1 wrote:

I'm coming up to my anniversery of using Moneyback (didn't have to apply for new account, just transfered my existing one over) - and have been told I'm getting around £50 - I don't think thats too bad, but in fact it actually makes me realise I'm spending too much on my debit card in purchases :S

and ps i know that Halifax helped a lady who used her visa debit card to buy something of the net that she did not receive, claim her money back from them

can any one just transfer over or do you have to be staff

regularsaver1

they used to transfer people from normal current account to money back before, but now you have to open up a new one

its the same for everyone, ok