Cash advance fee through CDWow

CopperPlate_2

I bought a couple of CD's last month from CDWOW and paid for them with my credit card. The secure payment system - paynova.com - processed the transaction and that was that.

On getting my credit card bill through I noticed that I'd been charged a few pence interest and more was forecasted for the next month if I didn't clear the bill (which I always do, and there is 0% on it at the moment too for purchases).

I queried why I'd been charged interest and the explanation they gave (the CC company) was that paynova.com is classed as a cash advance and so will start accruing interest daily from the date of payment!

So, I won't be buying from CDWOW again using my CC - or at all for that matter. Didn't notice any advance notice or warning that the payment would be classed as a cash advance when I bought, but then it didn't even cross my mind that I would need to check.

jamalfatty

Havent CDWOW gone into administration now anyway? If they have guess that kind of solves your problem.

martyn4764

For info; you can still go through to Worldpay, rather than Paynova, by selecting the "Other Cards" button, as opposed to the "Visa/Mastercard" one. (It'll accept Mastercard no problem, so I assume it'll work for Visa too)

CopperPlate_2

Okay, thanks for that martyn4764, but surely that's a bit of a con? I can't see anywhere on the CDWOW site that says payments by credit card will be treated as cash advances. Nor did I see anything on the paynova site/receipt either. It just makes me wary of other online retailers, not that I've ever had a problem with anyone else. Just hope it's not the thin end of a wedge.

martyn4764

Hi

I suspect paynova might be a bit 'bargain basement', perhaps as a result of CDWOW trying to cut costs anywhere and everywhere?

I don't think CDWOW did their homework before signing up; I found out about the "Other cards" route after trying to buy a £20.49 game with a £20 voucher, only to find that paynova has a 50p minimum and couldn't process a 49p payment!

Might be worth complaining to CDWOW, as it'll most likely come as a surprise to them too?

CopperPlate_2

Already done it. Will wait to see their reply. The reply I received from the CC company was that some merchants are trying to cut out the cost of the transaction fee imposed by the CC provider and have, instead, shifted the burden onto the consumer through using companies like Paynova which are being classed as 'cash advances' by the CC providers, hence, the merchant doesn't pay the transaction fee, and the CC company gets the interest charged on the advance - result: consumer pays. Clever.

Misterel

Thanks for posting the above - its good to be forewarned about these things. I'll have to keep my eyes peeled for "Paynova" and its ilk in future.

Goldfingers_2

I too have been stung - not only with interest but also a £3 cash advance fee on the £16 worth of goods from cd-wow. I have mailed my credit card (EGG) requesting this back as the irony is that CD-wow is an affilate of egg and offers 5% cashback on all purchaes from cd-wow made with the Egg card! To rub salt in, I have not received my order which is now over 3 weeks old. I too see this as desperation by a company clawing in as much revenue before the inevitable

CopperPlate_2

Just received this response from Paynova:

It has come to our recent attention that some customers of CD WOW who
have paid using Paynova were charged a cash advance fee by the issuing
bank of their credit card. The amount of this charge differs from bank
to bank, however is generally around $2.50 USD. The majority of banks
do not charge this fee, nevertheless in some circumstances it is
possible; For more information regarding whether or not you will be
assessed such fees please contact the bank at which you attained your
card directly.

In an effort to ensure that your shopping experience at CD WOW remains a
positive one, Paynova will issue a full refund of any cash advance fees
charged to you by your bank relating to purchases at CD WOW. If you
have been charged this fee and wish to be refunded, please return to us
a copy of the e-mail receipt of your purchase that you received from
Paynova and a copy of your bank statement detailing the cash advance
fee. You may find instructions on how and where to send this
information below

support@ paynova.com

So all this rigmarole to claim back 37p, I don't think so. And nothing quite like shifting the blame is there?

And also still haven't received my CD's...

jonesMUFCforever

It has been written on other sites that CD-Wow have gone into administration.

Hope you guys paid using a credit card!

CopperPlate_2

ejones999 wrote: »

It has been written on other sites that CD-Wow have gone into administration.

Hope you guys paid using a credit card!

Of course

Haven't seen anything on their site to show that there is a problem - I'd have thought they would have some sort of announcement banner there. Would there not be an issue with them continuing to trade and take payments for goods when there was a chance they couldn't meet these obligations?