Cashback - Credit card in Credit

asad.rajput

Hi
Would a credit card company charge interest if the credit card is in credit and the cashback is lower than the credited amount?

Example: Credit Card limit = 5000
Credit in with say 100 quid = Total credit available = 5100

Cashback = 50
On this 50 pounds cash, would the bank charge interest as you only took out money which you put in?
Thanks

lisyloo

You can't generally get cashback from a retailer with a credit card.

It's also against your terms and conditions to put a credit card in credit so you shouldn't do that either.

If you did manage to do it then I guess you wouldn't get charged interest.

asad.rajput

Thanks for the reply. My credit card somehow allows credit so the card is in credit, and I would be using it in the ATM where it is allowed.
The only reason to ask was to use this card abroad as it does not have any international loading charges and if I put it in credit I would get cash out with good exchange rates.
that's the idea now how feasible it is, I don't know.
cheers

lisyloo

My credit card somehow allows credit

Yes you can acheive it but you are not supposed to do it.

I would be using it in the ATM where it is allowed.

Ah right.
That's normally referred to as a cash advance.
Cashback is either a reward or where you get cash from a manned till.

You may face cash advance fees even if you are in credit.
The logic is that this is not interest for borrowing the money but a fee for using the ATM service.

The problem with your plan is that you might one day find your card stopped because you've been putting it into credit, so make sure you take a spare card.

Can you pay it over the internet - do you have access to safe & cheap internet?
Or could you simply pay the interest when you get back. For a short holiday it is usually very low (depending on your APR of course).

I have a Halifax Clarity card. If I have free wifi then I make faster payments to match my spending. If I'm somewhere I can't use the internet then I pay £2-£3 when I return. About the cost of a coffee.

asad.rajput

Thanks for reply
This is Halifax Clarity which boast that they don't charge anything extra for cash advances (sorry for the confusion earlier).
And the whole question was raised on that predicament. It allows inet banking so you're right, I would pay it as soon as possible and even then the APR is 12% which would not dent the pocket much.
But the idea that putting in credit and cash advance really intrigues me since I tried putting my card in credit and it did allow it to be.
cheers

lisyloo

Yes correct no fees on Halifax.
You may find in some countries that you get ATM fees from the local bank providing the ATM. This is nothing to do with Halifax.
I have found this more common outside the EU.

Banks are obliged to stop criminals "laudering" their money.
Different banks implement different checks.
Some banks might pick up only larger amounts and small ones slip under the radar.
You should also ask yourslef whether your money would be insured if you card was cloned and used fraudulently. I believe that banks insure their own money (debit balances) but you credit balance might not he insured if it's stolen.
Personally I don't do it because I don't want to risk either of those things happening.

Also I would advise you to call Halifax and let them know where you are going and when. There are no guarnatees but it might stop your card being stopped if you've told them where you are going.

Aquamania

Can I put money on my card to increase my available credit whilst on holiday?
Credit cards are not designed to be used this way. Using the card in this way breaches the product's Terms & Conditions, which state:

7.7 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. We may return any funds that exceed the balance owing on your account to the account from which the money was sent.

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

asad.rajput

Informative