Cash withdrawals abroad

dzug1

Moneysaversbandc wrote: »

I have read the replies saying that it is not possible to pre-pay into Clarity card in advance so that cash withdrawals can be made abroad, but has anybody actually tried to do it yet?

Likewise with Nationwide credit card which currently has no charges - would it be possible to pay more funds into the card in advance of going abroad so that cash withdrawals could be made without interest?

Martin, please can you test this possibility.

I really think that Nationwide have lost the plot with this one, I can understand that they do not want people just using the free facilities abroad, but surely they could have applied rules of having a current account. I thought that a mutual society was owned by members for the benefit of members!!!!!

It's always possible to 'preload' a credit card - what is more important is what they do when you ignore the T&C of thou shalt not and go ahead and do so.

I'm not sure that a test would prove very much - OK it might work (or not work) for you, but they are under not the slightest obligation to be consistent about doing the same for another customer.

My guess is that there will be a threshold over which they carry out the threat to return the money - and I could make a good guess at what that threshold might be.

Nationwide's argument (and I'm not saying I agree with it) is that it's only a small minority of members that use their cards overseas and that it's unfair that they should be subsidised by the majority.

chattychappy

dll wrote: »

I wouldn't recommend cash withdrawals using a credit card - whatever it says, it ends up costing a fortune.

Nah.... as a "general rule" perhaps. But I now use Zero in Asia in preference to debit cards. You get a "mid-rate" (ie not loaded) and there is no fee. They charge interest from the date of the transaction. So after the withdrawal I log in, check the transaction and use internet banking from NW to send the right amount.

So normally I pay 2-3 days interest - about 0.3% of the transaction. Hardly a fortune, and miles cheaper than most other methods. Even if you delayed a whole month it would be about 2%. Still cheaper than cards that load 2.75%.

lisyloo

but has anybody actually tried to do it yet?

I really wouldn't try it.

Sure it might work, but they also might stop your card.
There are far worse things than paying Halifax 0.5% interest (if you pay it off in two weeeks) liks

1) having your card stopped - and then paying a lot more
2) having your pre-loaded money stolen

Why do you want to take a chance to save tiny tiny amounts of money.
I know this is MSE, taking risks by breaking rules could turn out to be a false economy.

I think you need to accept it cannot safely be done BUT if you are very keen to save small amount so of money then you could go to an internet cafe and pay the card off ASAP.
You will probably have to pay to use the internet and personally this is not what I want to do on my hols for the sake of very small charges, but it is possible in this day and age, to pay it off very quickly to minimise interest.

As someone else said, testing proves nothing.
It only shos soemone else got away with it, but their money would still be uninsured.

luci

I emailed the Nationwide a few days ago and asked if I could put their credit card in credit before withdrawing cash. They said I could, but they didn't encourage it.

This would save the interest, but there is still a 2.5% fee, minimum £3.

lisyloo

They said I could, but they didn't encourage it.

That's because your money is not insured.

So you think it's worth risking all your money if you are mugged to save a few pennies?

I think that's a false economy.
If you can't afford 12.9% per annum (0.5% over two weeks) with Halifax then you need to seriously reconsider if you can afford your holiday.

choc_mouse

If you want to "load" your CC, you could try:
1) Purchasing something expensive with your CC
2) Pay off the bill when you get it
3) Get a refund on your expensive purchase.

That happened to me once (for legitimate reasons) and my LTSB card was £1000 up.

lisyloo

Arggghhhhhhhh

Yes you can "get away" with it, but your money is not insured with most comapnies.

If you got mugged or your card is used fraudulently then you'll lose your money.

Is it really worth it??? for a few pennies??

chattychappy

lisyloo wrote: »

That's because your money is not insured.

So you think it's worth risking all your money if you are mugged to save a few pennies?

I can't see it has anything to do with insurance. If a card is fraudulently used, whether it's pre-loaded or not won't affect your ability to re-claim.

Unless you're talking about compensation if the bank goes bust whilst your credit card is in credit (which may or may not be covered).

DesG

Has anyone thought about the negative impact on your credit score of withdrawing cash from a credit card? Does anyone know if halifax clarity reports this information to the agencies?

I just checked my credit file and the zero & PO card doesn't look like it reports this extended information, but my old halifax one card does.

Cheers, Des.

lisyloo

If a card is fraudulently used, whether it's pre-loaded or not won't affect your ability to re-claim.

Not according to Nationwide.
(I triple checked this with them).

THEIR money is insured, so if you are in debit and their money is stolen through fraud then it's insured.
If you have a credit balance then it's your money and it aint insured.
The Ts & Cs are quite subtle about this, but essentially it's their money they are insuring.

Do you have a link for your belief, or can you tell us who told you that?

My information comes from Nationwide direct and I made very sure that I had not mis-heard or mis-understood.

I am talking about theft and fraud from (for example) someone mugging you, cloning your card in the "back office" or getting hold of your details from the inside or hacking in to your computer or the lenders computer.

Unless you're talking about compensation if the bank goes bust whilst your credit card is in credit (which may or may not be covered).

That wasn't what I was referring to.
I'd consider a bank going bust as negligeable risk but you are right, it's probably not covered under any compensation scheme.