Warning: Capital One credit card charges you for charitable donations

tigerminxy

Don't get a Capital One credit card if you don't like people making money out of you giving to charity.

I recently bought some charity raffle tickets benefitting Children with Leukaemia online and used my Capital One credit card to pay for them.

A few weeks later, I looked through my statement and found that Capital One had charged me a £3 cash advance fee + 60p interest. When I queried this, they said it was because I had put a gambling transaction on my card. The reasoning being that entering a charity raffle counts as 'gambling', and they pointed me to a clause buried in their terms and conditions that entitles them to screw you for this.

As someone who never takes cash out on credit cards and who doesn't gamble, I'm really annoyed with Capital One for putting me in the mindset that I will just avoid giving to charity online now, for fear of being screwed over. Why are financial services companies so evil?

dazza.mk

Not just Capital One, that's pretty much standard for all cards.

chuckley

i can see why... its not like a card payments, its you giving cash to another. sucks though!

chattychappy

Seems pretty simple to me. If you want to give to charity, just send the money. If you need to use a credit card, well then you might have to pay.

Why should the credit card NOT make money out of the transaction? Does it matter what kind of gambling it is and where the profit goes?

Perhaps the charity is being a bit cynical - they must know how these transactions are processed. If they were treated as normal purchases maybe they'd have to pay more fees at their end.

I'm sure it's a good cause - but frankly so many charities these days behave like big corporations but seem immune from criticism.

datostar

tigerminxy wrote: »

As someone who never takes cash out on credit cards and who doesn't gamble, I'm really annoyed with Capital One for putting me in the mindset that I will just avoid giving to charity online now, for fear of being screwed over. Why are financial services companies so evil?

Lotteries are gambling, full stop. People buy the tickets in the hope of winning something. The National Swindle gives money to 'good causes' too. So do a lot of bookmakers. It's all good publicity for them. No need to avoid giving to charity on line. Just make a donation and they can claim the tax back as well if you tick the box. The evil financial services companies won't penalise you for that.

YorkshireBoy

chattychappy wrote: »

Perhaps the charity is being a bit cynical - they must know how these transactions are processed.

If they don't, they should (at least be made aware of it).

The people handling payments for the charity, the merchant acquirers, will know they use a 4-digit merchant category code (MCC) denoting a cash transaction to report to the credit card providers.

Capital One have done nothing wrong in my opinion. They have merely applied the relevant code as instructed by the merchant acquirer.

tigerminxy

chattychappy wrote: »

Why should the credit card NOT make money out of the transaction? Does it matter what kind of gambling it is and where the profit goes?

Capital One are making money out the transaction anyway, aren't they? They're just adding even more to their pockets by putting an extra fee on top of it and treating it like cash.

tigerminxy

YorkshireBoy wrote: »

Capital One have done nothing wrong in my opinion. They have merely applied the relevant code as instructed by the merchant acquirer.

Yeah, silly me for not checking the code that's been applied as instructed by the merchant acquirer when I was making a payment through Children With Leukaemia. Something tells me you work in financial services if you think normal people think like that.

YorkshireBoy

tigerminxy wrote: »

Capital One are making money out the transaction anyway, aren't they? They're just adding even more to their pockets by putting an extra fee on top of it and treating it like cash.

Would you agree you've had a bet...a gamble...a flutter?

Then Capital One are well within their rights, as detailed in the T&Cs, to charge the relevant fees and interest.

Harsh...when you're trying to support a charity...yes, but true.

YorkshireBoy

tigerminxy wrote: »

Yeah, silly me for not checking the code that's been applied as instructed by the merchant acquirer when I was making a payment through Children With Leukaemia.

There's no need for sarcasm. I'm just educating you (or at least trying to) as to how it works.

Something tells me you work in financial services if you think normal people think like that.

My post went straight over the top of your head didn't it. And no I don't work in financial services...but I do rather enjoy exploiting their T&Cs for my benefit at every opportunity.

In future, give cash with gift aid. If you're a non-tax payer, give the cash to someone who is a tax payer to give. You won't win anything, but that's not the issue is it?

iereboy

Normally, I hate the way people have a one sided opinion to big companies.

But come on people, it was for charity!!!!!!!!!