Debenham eGift card charged as cash advance?

SideKick

My partner purchased a Debenhams eGift Card online with her Visa Credit Card. The statement shows a £3 charge plus interest of 19p for a cash transaction. We were not told about this possibility at the time of the purchase.

Phoned Credit Card company and they claim it was because the merchant put it through as a cash transaction and it should be taken up with them.

Phoned Debenhams and they could not help, except to say to email head office.

Have never encountered this sort of problem buying gift cards online with any other company, Amazon, Apple etc.

Incidentally at the time of the transaction we had a call from the security people at the CC asking about the transaction, but they never explained it was a cash transaction then.

Has anyone else had a similar experience?

TIA

sinizterguy

That's not good.

jonesMUFCforever

Did you ask when the bank called if it was a cash transaction?
Technically you bought cash value through a gift card.
Over the years some have charged me, most have not.
I don't really think its something to get your knickers in a twist about.

grumbler

jonesMUFCforever wrote: »

Technically you bought cash value through a gift card.

This is arguable as the card can be used only for purchases and can't be converted to cash.

I'd complain to Debenhams on principle and demand compensation. They had to make it clear that they treated this transaction as a cash advance.

SideKick

No It never occurred to ask if it was a cash transaction, as in all my years a gift card has never been classed as such.

At present an email to head office at Debenhams has been sent and a reply awaited.

Will let you know how it goes.

Kim_13

I don't think it's the interest charged in this case that is the issue, but the principle. Don't Cash Advances get reported to the CRA's as such and viewed negatively? That's the problem. The lack of information could damage the individual's credit rating.

Interest in this case seems minimal, but I believe it's charged daily on cash advances, so the amount would need to be paid off right away. The interest could be a lot worse for those who didn't realise it was treated as a cash advance until statement day, or who are on higher interest cards. The CC company need to be prevented from landing anyone else in this situation.

SideKick

I certainly have much worse things to worry about, not finance related, however this was upsetting to my partner who always pays her CC off in full each month and never has any interest to pay, or other charges.

To compound things I discovered that on one of my cards I had forgotten to pay my card last month and had interest and late payment fee, but in that case I just accepted it as my own stupid fault.

Anyway I realise there are people who are in dire financial situations and all of this is a tiny drop in the ocean, but never the less it can be stressful when you find these things going on and didn't expect it.

So please no more, we are not looking for sympathy, just trying to understand why this happened and if it was just us or a general problem.

Kim_13

grumbler wrote: »

This is arguable as the card can be used only for purchases and can't be converted to cash.

This. If retailers/CC's get away with charging gift cards as cash, where does it stop. Mobile phone topups?

SideKick

Result - of sorts.

After going through the hassle of having to scan and send in the credit card statement to head office of Debenhams, they offered a £5 gift voucher as a "gesture of goodwill".

They did not explain, apologise, or take on board the fact that their Website did not advise customers of the possibility of this happening.

The whole experience has been a trial, they wanted serial numbers of gift vouchers (which we don't have as it was sent as a gift to a relative), an order number which we had no record of, though we had a reference number given in their order acknowledgement email which apparently meant nothing to them. Basically put as many obstacles in our way as possible.

Some firms get customer complaints right - they immediately apologise where there is clearly a mistake, they then refund whatever is due and then usually offer some compensation on top to cover inconvenience. Apparently not Debenhams.

You can usually tell the type of company by the warnings that all telephone conversations are recorded and that abuse against our staff will not be tolerated.

I wonder if the CEO of Debenhams get his renumeration paid in gift vouchers?

SideKick

Debenhams gift voucher arrived by post today (£5).

The letter did apologise and promise to investigate, so that was nice.

Matter closed now.

JKSandy

"Some firms get customer complaints right - they immediately apologise where there is clearly a mistake, they then refund whatever is due and then usually offer some compensation on top to cover inconvenience. Apparently not Debenhams"

And you would think as Debenhams are struggling in the market they would be quick to put things right.