About loading a credit card with cash beyond the credit limit: charges? T&Cs?

Let's say the credit card total credit limit is £200.

One wants to buy a return flight for £1000.

In order to be able to pay with the said credit card, it would take paying £800 to the credit card account in advance of purchasing the £1000 return flight.

1. Have you ever done that?

2. Does your credit card provider charge a default fee/charge for paying to the credit card account more than the credit card limit?

3. If there is any charge, does it appear in the summary box, or in the T&Cs?

4. How is it worded?

5. How much is the charge?

6. Is there any FSA regulation on the matter?

Thank you.


  • Gordon_the_Moron
    They should not charge a fee since you are charged for going over your limit. If the card has a positive balance and you and you carry out a transaction bigger than your credit limit you still aren't going over your limit so it should be fine.

    Couple of potential issues though:

    If the purchase leaves your card with a balance of £0.00 or above you lose your legal right to section 75 protection on the purchase as you are spending your money not theirs, however they may accomodate a claim (I've never tried it and it is doubtful)

    Some cards expressly forbid a positive balance in the terms and conditions, they may also return a positive balance to where it came from (if the source is a balance transfer from another credit card this may incur a wasted fee)

    You will not earn interest on a positive balance so don't leave one there any length of time.
    If you don't like what I say slap me around with a large trout and PM me to tell me why.

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  • Rose123
    Rose123 Posts: 397 Forumite
    You might only be allowed to spend no more than your actual credit limit. So if you limit is £200 but you upload £1000 to make your balance £800cr you might find that your transaction for £1000 is declined but if you try and proceed with a transaction thats £200, it will be accepted

    Only way to be sure is by contacting your CC issuer!
    Official SOS Club number 014 - Dry until 29.11.09
  • cash-magnet
    cash-magnet Posts: 320 Forumite
    If you are just after the Section 75 protection on this purchase (assuming the flight operator isn't atol bonded which negates Section 75 iirc) then just pay £100 of the cost on your credit card to activate that protection. No need to load up your credit card and pay the full amount by it. Hope this is of some help to you.
    "Click the pennies. Collect the pounds."
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