Credit Card cash withdrawal charges

chattychappy

MacsReturns wrote: »

Not my contract, not my problem, just sayin'

As a technical footnote, it can be your problem even though it's not your contract. If you induce someone to breach a contract they have with a third party, then the third party can sue you "in tort" - Lumley v Gye (1853). Effectively it is a form of accessory liability. Extremely unlikely though and there would be some defences.

Pubs that do this are losing money - they are paying a % fee to advance you the money. In the case of the beer they can pay this out of their margin and still make a profit. As mentioned, it's either staff error or they reckon it's worth it for the goodwill or perhaps know that in a lot of cases the cash will go straight back to them in sales (and the profit will cover the transaction afterall).

I knew a friendly forex place that would put transactions through either as a cash advance or purchase - up to you. For purchase they would charge extra (2% I think) and it would be processed by the gift shop next door. But it "got stopped" eventually.

MacsReturns

chattychappy wrote: »

As mentioned, it's either staff error or they reckon it's worth it for the goodwill or perhaps know that in a lot of cases the cash will go straight back to them in sales

As it's usually the LL, I put it down to goodwill, and the fact it gets spent back there :beer: But thanks for the technical footnote, anyway.

izools

chattychappy wrote: »

or perhaps know that in a lot of cases the cash will go straight back to them in sales

Exactly.

Any time I offer to leave my card at the bar and open a tab at my local pub they ask how much I expect to spend that evening and give me that amount in cash minus the cost of my current drink / round no matter what sort of card I hand over be it debit or credit, visa or MC.

I think that if they are confident they will get the money anyway it's cheaper doing it like this as multiple card transactions might be costing them more than one larger one especially if they're an independent trader, where the card merchant charge a per transaction flat fee plus a percentage.