Using my card to buy items for other people, then giving me the cash .....

Driving_Soon

Hey

My family are not very capable when it comes to computers, so I often order whatever they want online for them on my credit card and they pay me the cash.

I keep this cash till the end of the month then go into the bank and pay my account of in full using the cash they have give me (Plus sometimes a cheque or cash of my own if any of my items are on the card)

I went into the bank the other day and paid of my monthy credit card bill which was £500. I paid this in Cash.

The guy looked at me strangley and began writing on his computer, I asked him if everything was ok and he said yes, he was there for a good 3-5 mins before asking me if I was the credit card owner. I said yes, and he gave me back my statement which he stamped then that was that.

Ever since, it's been bugging me slightly! Have I done everything "legal?" -- Is there any issue with someone else using my card to order stuff (I always order it, but it's for someone else) then them paying me the cash and me paying my bill off each time a new statement comes through?

bouncydog1

The bank clerk was checking you out under the AML regs. AFAIK there is no rule that says you cannot buy things for other people and use your credit card, but issues could arise in the event that there was a fault with the goods and you tried to claim against your credit card issuer. As you had effectively sold the goods to someone else, you would no longer have a financial interest.

Rather than do this, you would be better to point your family and friends towards better managing their money.

izools

Yeah that's absolutely fine!

People have paid you for goods that you've given to them / bought on their behalf... Nothing wrong with that.

Either he was new and not sure of the system or he was trying desperately to find a product to try and sell to you but the computer wasn't coming up with one / there wasn't anything appropriate for him to try and market to you.

Don't worry

NickX

The only thing you have done wrong is not put that money into an interest bearing account and earn some cash for your generosity in allowing others to use your card to make purchases.

When I go out for dinner with friends I will always pay on my credit card and take the cash from my friends and colleagues. Any cash that isn't spent on after dinner drinks goes in my stoozepot.

Check out the stoozing sub board, if you are savy with 0% purchases cards you could be earning a bob or two from this.

As for the bank clerk, you are paying your bill, how you racked up that bill and your decision to settle in cash is quite simply nothing to do with him. Don't worry about that for a minute

bengalknights

I think you just got ratted on for being a terrorist money launderer lmao

Jokes aside its more likely he was just confused with his computer or just trying to sell you something.

Driving_Soon

Cheers Guys!!

2sides2everystory

bouncyd0g! wrote: »

The bank clerk was checking you out under the AML regs.

For a measly £500?

AFAIK there is no rule that says you cannot buy things for other people and use your credit card, but issues could arise in the event that there was a fault with the goods and you tried to claim against your credit card issuer. As you had effectively sold the goods to someone else, you would no longer have a financial interest.

Whilst I think I take your point about Consumer Credit Act claims, I think the "effectively sold the goods to someone else" is a bit heavy i.r.o. family. Good to point it out I suppose as I imagine that some of these purchases if over the internet have a delivery name address different to the billing address?

Rather than do this, you would be better to point your family and friends towards better managing their money.

Ha! If only! I'd say the majority might be safer sticking to paying the OP cash while they know how much they can spend rather than blundering into credit card accounts if they are anything like some of the noobies seen in these forums lately

dzug1

2sides2everystory wrote: »

For a measly £500?

Yep - £500 is quite often a triggering limit

PudseyDB

As long as you're the one who's doing the ordering, then you're fine. If theyre all paying on time, and you're happy to do it, then it sounds like a good solution. My only concern would be - where do you keep the cash? Not in your home I hope.

lisyloo

There is nothing wrong with it, but £500 is quite a lot of cash to carry around.
Banks are charged with making sure no money laundering goes on and they have responsibilities for which there are serious penalties if they don't carry them out.
He was only doing his job and I don't think you should be spooked.

I took £1500 in cash out of my account once (for a motorbike), paid it back (motorbike was no good), then took it out a second time for a different example.
Second time we got security questions at the bank.
I was a bit cross as to be honest if I was a drug dealer or terrorist then I wouldn't be trying to put it through the Nat West.
BTW - didn't want to write a cheque as the trip was not local and didn't want a second trip, also a wad of cash was a negotiating tactic to get the price down i.e. this is the cash I have NOW, take it or leave it.

jen245

Rather than do this, you would be better to point your family and friends towards better managing their money.

Its nothing to do with people managing/mis-managing money. My mum is also not very computer literate, and is nervous about buying stuff online, so I get it for her using my card, and she sends me a cheque for the amount, which I pay straight back to my card. I did a huge chunk of her Christmas shopping for her online last year, managed to save her quite a bit, and although she's not very good with computers, she is most definitley money savvy.