Cash Advance Fees using Paypal as payment method

DXM_2

Hi there, just a quick question I'd appreciate others opinion on, before anyone states the soon to be obvious, I am a bit of an idiot.

Okay, I was bored a few days ago, and for some ridiculous reason; decided to gamble a "little" money at an online casino. (I know what you're thinking.)

I paid for my deposits via Paypal, which is funded by both my verified Visa Debit, and Mastercard. I never really took notice of which one Paypal took the money from, as I've never had an unexplained fee.

So, I deposit £20, using Paypal. To my complete and utter surprise, I win £200. So I withdraw £150 to my Paypal account, as I deemed that an acceptable and nice return, if I won more with the fifty, nice. If I lost, I'd not care.

What happened next, I won high again, and I repeated the above steps. This happened repeatedly over a 3 hour period. During which I gambled over £13,000. (I never let myself be in a position where I could lose money. Even if I lost the lot, I'd still be up at least £150.)

Well, it turns out each time I added more money to the casino (33 times.) I was charged a "Cash Advance Fee", This adds up to just over £85.

I can't find mention of it on Lloyd's site that using Paypal as a payment method (Even on gambling.) incurs a fee. Neither can I see it on Paypal.

Is there anything I can do about this? I'm annoyed. (As it happens with the gambling, it turns out sometimes people do beat the house, and I came away with over £9000 in winnings, which is now in my bank.)

I rang Lloyds, and a very confrontational and by the sounds of it, very judgmental advisor who basically said gambling and lottery incurs a fee when using the card. I didn't use my credit card as payment method though, I used Paypal, and they didn't have any warnings, and from past experience, they don't charge for using a credit card as the source of your money. PLUS they have my Debit on there as a source of money. Then he even had the nerve to state "Guess you shouldn't gamble, seems like you spent a lot..." I did spend a lot, but I gained it back and then a great deal more. He was just smug and was really rude.

I know I don't really have a "right" to be irritated, and due to the money won, It's really not a problem, but it just seems rather illogical and unfair to charge fees for buying credit.

I will say this though. First and last time ever gambling. I think I may have the traits of an addict!

Sorry about the long post, but I assumed Cash Advance Fee's are when YOU withdraw your money from a credit card. Not when a COMPANY does it for you, in return for goods/services.

lisyloo

and from past experience, they don't charge for using a credit card as the source of your money

I suspect in the past you've made "purchases" from paypal.
Depositing money into a gambling site is considered a "cash advance", the same as taking money from an ATM or getting cash over the counter.
I realise this isn't intuitive but that's how it's classified.

but it just seems rather illogical and unfair to charge fees for buying credit

Yep I agree it's not obvious and I also agree that the staff have no need to be smug or rude.
However if you want to use cards/paypal then you need to understand the rules or face the consequences.
I have no reason to be nasty, but that's the truth.
There is a condition here that you didn't udnerstand in advance that gambling payments are classified as cash.

but I assume

Well, this is the problem.
You guessed rather than looking it up.

To be honest I'd just take it on the chin and smile smugly about the guy at the call center who probably has a reallt cr*p job.
You are up no the deal and you've sone well and not lost out. In fact you've done fanstastically well.

Jsut take it as a lesson to learn to check things out in future and not assume.
I understand how this can happen because it's counter-intuitive as you say, but just accept you've come out on top in a big way.

I'd be plannig a holiday or plannign what to spend it on and maybe treat a few friends and family.

blitzboy

1. It will clearly state in your terms and conditions that gambling/lottery etc are treated as cash transactions.

and

2. Why would you keep taking money out and then adding it again? :undecided:

dalesrider

DXM wrote: »

I can't find mention of it on Lloyd's site that using Paypal as a payment method (Even on gambling.) incurs a fee. Neither can I see it on Paypal.

Is there anything I can do about this? I'm annoyed. (As it happens with the gambling, it turns out sometimes people do beat the house, and I came away with over £9000 in winnings, which is now in my bank.)

Sorry about the long post, but I assumed Cash Advance Fee's are when YOU withdraw your money from a credit card. Not when a COMPANY does it for you, in return for goods/services.

Paypal list debits in diffrent ways. Gambling related sites will always show as such in the retailer description code that paypal provide to the bank.

You won 9K and you are upset about £85 in cash advance fee's... I await the complaint when you are still paying the interest in 3 months time.

Gambling IS taking cash.... Remember you were gambling with someone elses money here.
In reality gambling transactions should not be allowed on a credit card.

So stop moaning you beat the system and won. Now walk away, pay the fee's and think how lucky you have been....

You could have been 9K poorer :eek:

DXM_2

I'm resigned to the fact that It's my fault for not checking it up. I do think it should be made more clear though.

And Blitz, I kept withdrawing the money so I knew I'd not compulsively use it and lose. However, the impulse just made me deposit more and more. I had honest intentions lol.

Gambling is scary, the money moves fast and doesn't seem real. I'm never touching it again, how I was acting and the deluded justifications I was making to myself make me feel so pathetic. At the time I was actually miserable I didn't quit when I had 13k. As if 9 wasn't good enough lol. I realise how lucky I am, and It's nice to finally have some luck, this year alone I've been diagnosed with Ataxia, I finally got declared blind in my right eye (Was partially sighted.) and I fell down the stairs (Ataxia) breaking my nose, thumb and dignity lol! Money doesn't buy you happiness, but it can certainly buy you comfort.

On a more positive note, I donated £50 to GamCare, and £50 to Cancer Research.

I'm also taking my gran out to dinner. What a generous thoughtful young gent I am hahaha. (The rest has been put in my ISA. (About time I filled it lol.)