Cash advance for credit transaction

Empty_pockets

Hi,

Recently signed up to Betfred website to play Irish lottery.

I had to register a card so entered my Capital 1 CC details as this offers online protection.

You need to buy credit and have a credit balance to bet from. I wanted to play £8 worth of lottery so charged my card to the value of £8, and used the full amount straight away to place my bet.

I have susequently been charged a cash advance fee of £3 from the CC company.

Is this correct? Surely I bought credit not cash?

Would I have been charged if I had bought phone credit or pre pay electric credit on the card?

Sent them a secure message but still awaiting a response.

Thanks.

molerat

Gambling is considered a cash withdrawal with nearly all CC's.

Empty_pockets

Hmm, didn't know that. New to gambling, only did it online and the site seemed easy to use and saved walking to the shop in the rain.

Don't think it should be though, after all, i'm not withdrawing cash and thats what the charge is for.

leicsmarkyr

Gambling is classed as quasi cash and will be mentioned in your T&C that you are charged a cash handling fee AND interest from day until paid in full. It's not like a purchase.

You could plead with Capital One that you was not aware and as a gesture of goodwill and under "Treating Customers Fairly" refund the cash advance fee although they have no obligation to do so as you agreed to these charges when signing up for the card.

I had a similar issue with MBNA and as it was my first 'offense' they refunded the fee.

BoGoF

Harsh as it sounds, it doesn't matter what you think. Standard practice is that gambling transactions are treated as cash advances - doesn't have to be a withdrawal.

leicsmarkyr

Empty_pockets wrote: »

Don't think it should be though, after all, i'm not withdrawing cash and thats what the charge is for.

You are technically just taking out cash as you not really buying anything like you do with say using your card in a supermarket.

Empty_pockets

I bought credit. I may be wrong but I don't think you can withdraw the initial credit as cash, I think it has to be spent with betfred.

If you can withdraw it as cash, then I suppose they are right to charge. Pity it wasn't made clearer though.

BoGoF

Empty_pockets wrote: »

I bought credit. I may be wrong but I don't think you can withdraw the initial credit as cash, I think it has to be spent with betfred.

If you can withdraw it as cash, then I suppose they are right to charge. Pity it wasn't made clearer though.

As was said earlier....it will be in the T&C's (your CC providers)

Empty_pockets

That it may be, and I was aware drawing cash would raise a charge, but it seemed clear to me I was buying credit, just as I buy credit online for my phone.

It could have done with a note maybe on the betfred webite that if you use a CC any purchace will be treated as a cash withdrawal.

T&C is just detail, these things need to be clear to all involved. PPI purchaces had all the details in the T&C and we all know how that turned out.

BoGoF

Come on, you want Betfred to tell you you will incur a cash advance fee? You also want them to put up a warning saying if you're numbers don't come up you have lost your money?

Take some responsibility......surely you had £3 on a debit card. Otherwise you can't afford to be gambling

leicsmarkyr

Empty_pockets wrote: »

That it may be, and I was aware drawing cash would raise a charge, but it seemed clear to me I was buying credit, just as I buy credit online for my phone.

It could have done with a note maybe on the betfred webite that if you use a CC any purchace will be treated as a cash withdrawal.

T&C is just detail, these things need to be clear to all involved. PPI purchaces had all the details in the T&C and we all know how that turned out.

Betfred (or any other betting firm) do not care if you are charged a fee by your card issuers. Not ALL card issuers charge a fee [I can think of one]. You need to read what your T&Cs state which is the detail and clear. A quick 2 minute search on the Capital One website shows under Section 21. Definitions the following (highlighted):

'cash withdrawal' means a withdrawal of cash made by you or any cardholder and also means any transaction made where you or any cardholder: (i) obtain foreign currency, travellers' cheques and/or money orders; (ii) make an electronic money transfer (excluding balance transfers); (iii) make a payment to open a deposit account; or (iv) carry out a transaction where payment is made to an establishment that is identifiable as carrying on gambling and the purpose of the transaction is payment for gambling activity;

I think that is perfectly clear and detailed enough. Capital One nor Betfred are in the wrong