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Is this allowed?

Many people talk about wanting to pay off their overdrafts with interest free credit cards.

What if you were to deposit money in to say a online bookmakers account or similar and then withdraw it to your overdraft account? I had my DMP LBM recently and one of my friends has done this with Ladbrookes. Depsoited £1000 on a Tesco CC and then withdrew in to a Natwest account.
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Comments

  • Gromitt
    Gromitt Posts: 5,063 Forumite
    You mean 'Depsoited £1000 from a Tesco CC and then withdrew in to a Natwest account' ?

    If so, then you are basically using the online account to avoid the fees. I'm surprised they allow it, but if they do, sure, go for it. As long as the transaction shows up as a purchase on your card rather than a cash transaction. The later would incur fees and interest from the day you did it.
  • I can confirm after speaking to my friends that you can definitely do this by depositing with a Tesco cc to Labrookes and withdrawing on to a different card, it is not registered as cash so fees avoided, hope this helps some others.
  • CG19a
    CG19a Posts: 765 Forumite
    I think gambling transactions are treated as cash advances on most credit cards.
  • probably worth people checking by using a small amount, it has worked for my mate though, he looked at his statement online and no charges.
  • meer53
    meer53 Posts: 10,217 Forumite
    Tenth Anniversary 10,000 Posts Combo Breaker
    There won't be fees for moving from Ladbrokes to his bank but there may well be for moving from the CC to Ladbrokes. It will be classed as a cash transaction.
  • Gambling transactions are classed as quasi cash and therefore are subject to the cash advance fee and interest from the day the transaction is posted until paid in full.

    (The fee maybe avoided on some cards such as Santander Zero)
  • jennyjj
    jennyjj Posts: 347 Forumite
    Part of the Furniture 100 Posts Name Dropper
    I can confirm after speaking to my friends that you can definitely do this by depositing with a Tesco cc to Labrookes and withdrawing on to a different card, it is not registered as cash so fees avoided, hope this helps some others.
    If this works as an effectively free cash advance, then it has great potential. Many/most gambling deposits by card are treated by the card companies as cash advances, and I'm surprised if you can withdraw back to anywhere other than the card you deposited from.
    So... who's tried it, and with which card and gambling establishment?

    JJ
  • Risky. Many/most bookies won't let you just deposit and withdraw without "playing the money through", otherwise they could be used for money laundering (and they get charged for financial transactions as well). So you could lose it all!
    Everything turns out all right in the end. If it's not all right, it's not the end.
    __________________
  • lolavix
    lolavix Posts: 532 Forumite
    I thought you had to withdraw to the card you deposited from...I don't have a Ladbrokes account though so maybe they're different.

    I have never had a credit card that didn't treat a gambling transaction as cash though
  • You can pay yourself with PayPal, it charges 2.4% though.
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