Amazon Credit Card - Bank of America

casheywood

A couple of months ago I made an expensive purchase with Amazon so took advantage of the 12 month interest free card. The free interest was for purchases via Amazon only.
A couple of weeks later I made another couple of purchase from other stores using the new card.
I paid for the non interest free purchases in full following my first statement.
The 2nd statement shows an interest payment of £6 is due.
I queried this with Bank of America who tell me that the items with the lowest amount of interest are paid of first.
This effectively leaves me paying £6 a month interest until I have paid off all my Amazon debt.
Hardly interest free?
Is this common practice?
I will of course be transferring the balance to another credit card.

Cas

Fergie76

Yep, seems that way. It's in the t&c's.

If you search on here, you will find lots of similar story's.

YorkshireBoy

casheywood wrote: »

I will of course be transferring the balance to another credit card.

Of course?!

That could be a very costly exercise, bearing in mind MBNA's recent announcement that they're moving to a favourable 'positive payment hierarchy' from September 1st this year.

So, you'll save around £12-18 in interest by transferring, but how much is the BT fee?

Fiddlestick

casheywood wrote: »

with the lowest amount of interest are paid of first.
This effectively leaves me paying £6 a month interest until I have paid off all my Amazon debt.
Hardly interest free?
Is this common practice?

Yes - payments are always applied to the least expensive debt first, generally 0% offers, purchases and then cash withdrawals in that order.

YorkshireBoy

Fiddlestick wrote: »

Yes - payments are always applied to the least expensive debt first, generally 0% offers, purchases and then cash withdrawals in that order.

Are you generalising, or confirming what MBNA do? If you're generalising, you're forgetting that Nationwide and Saga (issued by Allied Irish Banks) already have a favourable order of payments.

shop-to-drop

I think it's pretty normal that if you want to take advantage of 0% interest offers not to use the card for purchases during that period use another card for purchases. It's an expensive lesson I guess. Hope you can pay off soon.

td_007

casheywood wrote: »

I queried this with Bank of America who tell me that the items with the lowest amount of interest are paid of first.
This effectively leaves me paying £6 a month interest until I have paid off all my Amazon debt.
Hardly interest free?
Is this common practice?

Yes the payment hierarchy that leaves amt on higher interest is the norm except in few cases! Overall with credit cards there is always a catch if it has mix of offers which will benefit the CC company.....so unfortunately not much you can do in this case.

casheywood

Is Bank of America same as MBNA?

t4mof

Yes - quote below taken from small print on Amazon website:

"The Amazon.co.uk MasterCard is issued by MBNA Europe Bank Limited. MBNA is a Bank of America company"

noh

casheywood wrote: »

Is Bank of America same as MBNA?

Yes they are.
Bank of America own the MBNA brand.