MBNA - Cash Advance Fee - I messed up :(

darkcloudi

Just a query I got charged £1 interest and £3 cash advance fee on a £4 transaction which was made to paddy power via Paypal ( Never realised I would get charged a cash advance fee since I was using paypal - my mistake entirely )

Phoned MBNA and they won't waive the cost but not to worried about that since I made more money on the Horses

Just wondering since I have been charged interest if I was to clear my card in full by the due date but still be making regular purchases during this time will I be charged interest the following month?

The representative at MBNA suggests I wouldn't but concerned that since payments are often made to the cheapest rate in my case purchases then the cash advance fee and the interest will still be acruing interest, am I correct?

Should I stop using the card and pay of the entire balance until the statement shows nil balance?

Thanks in advance for your responses

Typhoon2000

Strange, I fund my Paypal account via my MBNA credit Card and it has never been treated as a cash transaction.

pjread

if you don't clear the balance it's almost certain purchases will be paid off first, i.e. that few quid will keep being charged at the cash advance rate.

PNPSUKNET

shouldnt it be seen as buying paypal credits, like they try to say when doing a section 75

darkcloudi

pjread wrote: »

if you don't clear the balance it's almost certain purchases will be paid off first, i.e. that few quid will keep being charged at the cash advance rate.

So lets says a scenario of a balance of say £100 is on a credit card but cleared in full, however during this time I continued to use the card to make regular day to day purchases, i.e. food, petrol, etc and racked up lets say a balance of say £50 I presume I would still have been charged interest, am I correct? As the payment would have been made to the recent purchases as oppose to the cash advance fee from last month.

darkcloudi

PNPSUKNET wrote: »

shouldnt it be seen as buying paypal credits, like they try to say when doing a section 75

This is what I thought but it shows up as a cash advance, presumbly because paddy power being a gambling site?

I was surprised when I noticed it on my statement as I use paypal occasionally over ebay purchases so thought it would have been the same as buying credits.

RussWWFC

I normally use my Lloyds AMEX Airmiles card for Paypal - no fee.

I'm on here because MBNA are up to their dirty tricks on my account - £3 fee on a £5 transaction, never had that before. That was Paddy Power, but direct via the site. It's probably in the T&C's somewhere, well hidden so they can take advantage.

Lesson learnt, I won't be doing that again

jd87

Haven't MBNA already started applying payments to the most expensive debt first (as all card issuers will soon be required to)?

ppc1

jd87 wrote: »

Haven't MBNA already started applying payments to the most expensive debt first (as all card issuers will soon be required to)?

Yes, the most expensive debt dies gets repaid first on MBNA cards. This payment allocation change came in effect 1st september 2010 before most other credit card providers.

twist-and-shout

There is the potential you will see interest over 2 statements. If you have only been charged £1 on the first statement then it's likely if you are going to be charged again it will only be for an additional £1 on next months statement.