preloaded credit card

ihatemoney2

Hi,
I have a question someone may be able to help me with to save me making an idiot of myself at the bank.
I have a normal Nationwide Credit Card that I accidentally payed some cash into online instead of my current account. No problem there, it's now preloaded with x amount and that will soon be eaten up, as I use the card.
However I drew some cash out with the card while it was still in credit (pre loaded) and was charged a cash handling fee of 2.5% (the normal fee). I would have thought that the fee should not be charged as I was actually in credit both before and after the transaction.
In the past, I've preloaded my Halifax Credit card before I went on holiday and not been charged cash handling fees when withdrawing.
I can't find my terms & conditions booklet and it probably doesn't mention this anyhow, as banks don't like you avoiding charges this way.
Maybe someone knows what the score is on this?

Sorry if it's a boring topic.
And yes I do hate money Ha.
Cheers.

Tixy

Most credit card providers do still charge a cash withdrawal fee in the circumstances you describe.

Just so you are aware its against the T&Cs of most cards to preload them - and it can be a reason for them to close down your account - they probably won't if its occasional/accidental as in this case, but might if you obviously intentionally preloaded it with a significant amount prior to a holiday. If you want to do this then better to get a prepaid credit card for this purpose.

ihatemoney2

Hi thanks for that, I'm sure your right, someone else just said the same to me. I must have been very lucky when I did it with the Halifax Clarity one. (I was doing it for 3 months and got no charges at all, but they did stop showing my balance on-line so it was harder to see how much I had left) Well at least I gained more then than I've just lost, so can't grumble too much.

NiftyDigits

Halifax Clarity doesn't have any cash handling fees in any case.

Homeagain

Tixy wrote: »

Most credit card providers do still charge a cash withdrawal fee in the circumstances you describe.

Just so you are aware its against the T&Cs of most cards to preload them - and it can be a reason for them to close down your account - they probably won't if its occasional/accidental as in this case, but might if you obviously intentionally preloaded it with a significant amount prior to a holiday. If you want to do this then better to get a prepaid credit card for this purpose.

That's interesting, I didn't know that. Thanks.

guesswho2000

ihatemoney2 wrote: »

Hi thanks for that, I'm sure your right, someone else just said the same to me. I must have been very lucky when I did it with the Halifax Clarity one. (I was doing it for 3 months and got no charges at all, but they did stop showing my balance on-line so it was harder to see how much I had left) Well at least I gained more then than I've just lost, so can't grumble too much.

Not lucky at all, the Clarity card doesn't charge withdrawal fees at all when withdrawing cash, it's one of its primary benefits!

On the original subject, the fee will still be payable, just without the interest. It's a fee providing the service of cash withdrawals, which they've still provided, rather than a fee for borrowing money, which they haven't, and would be the interest charged.

jonesMUFCforever

I agree - a cash withdrawal fee is payable - it does not matter whether the Nationwide card was in credit or not.

YorkshireBoy

ihatemoney2 wrote: »

I must have been very lucky when I did it with the Halifax Clarity one.

Very lucky!...

Clarity_T&Cs wrote:

11.7 You must not make payments or transfer funds from another credit or store card to your account that would leave a credit balance on your account.

http://www.halifax.co.uk/creditcards/low-rate-no-fee/clarity-card/terms/

ihatemoney2

Thanks to everyone who replied.
Regarding the Halifax Clarity Card, yes it does seem that there is no Cash handling charge (I'd forgotten that) However as one of you indicated, you are not supposed to put your account into credit (doing that actually means you are not charged interest either) That was beneficial for me at the time, but then I didn't realize that it was against T&C's, so from that view, I suppose I was lucky not to be pulled up over it as I was drawing cash from a Credit Card with no charge or interest whatsoever for quite a long time by continually pre-loading it. I would think that most people would get away with it as a one off, provided that your account is not normally considered problematic. Though, now I know it is actually in breach of the t&c's I wouldn't do it again. I'm sure more people have tried this as time has gone on and it's probably monitored quite closely now.