Skycard help anyone?

purplepatch

I ordered £703 worth of foreign currency from travelex website using my skycard on 21 May and on 22 May there has been a cash/chq handling fee of £20.75 applied to my card. As the fee is 2.95% and the amounts tie up, I'm guessing that the fee is related to this purchase. Are they allowed to do this??? I'm in shock!! I'd have paid on my debit card if I'd known.

grumbler

Although (IMHO) it is not made very clear in Skycard T&C, most of CCs and even debit cards charge for purchasing foreign currency. CCs usually class these transactions as cash advances.
Read SkyCard Terms and Conditions:

We will usually charge a handling fee of 2.95% (minimum £2.95) on the amount of cash, travellers’ cheques, ...

3.1 ...cash advances (including foreign exchange), ... travellers cheques

Also, if you are still within your 0% promotional period, be aware of the fact that 0% doesn't apply to cash advances ...

purplepatch

Thanks grumbler.

Ooooooh, the little b*****ds, seems so out of order. Still you live and learn.

grumbler wrote:

Also, if you are still within your 0% promotional period, be aware of the fact that 0% doesn't apply to cash advances ...

So, does that mean that I will have to pay off the whole balance to avoid paying any interest. I expect they apply your minimum payments to the 0% bit before they let you pay off the interest?? Is there anyway round this as I am only 6 months into the 0% period and am earning lots of sky points, don't really want to pay it off yet.

Just noticed it says estimated interest for next statement £13.10 - how can that be right as the only cash advance fee has been this £20.75?!!

grumbler

purplepatch wrote:

So, does that mean that I will have to pay off the whole balance to avoid paying any interest. I expect they apply your minimum payments to the 0% bit before they let you pay off the interest??

Unfortunately, yes ...

Just noticed it says estimated interest for next statement £13.10 - how can that be right as the only cash advance fee has been this £20.75?!!

Interest is charged not only on the fee, but on the cash advance itself too.
20.75*1.313%+20.75/2.95%*1.873%=13.45

Not exactly £13.10, but very close. And remember, interest rate on cash advances is 24.9% :eek: (1.873% monthly).

EDIT: interest is not charged on the fee yet, but only on the cash advance:

20.75/2.95%*1.873%=13.17

purplepatch

Thanks again.

<<sigh>>

Why oh why didn't I pay on my switch card.

I just looked again on the travelex website and they actually warn that the only way to be sure to avoid cash handling fees is to pay by switch. I ordered in such a hurry I must have overlooked that. Serves me right I suppose.

:mad:

purplepatch

OK, I've arranged to pay off the full balance outstanding on my last statement so that I can clear this fee and therefore avoid the interest.

I take it I'm ok to continue using the card in the meantime for purchases and that they will still qualify for the 0%? Can anyone confirm?

Many thanks.