We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.

Credit card: recurring payment

Last month I had a closing balance on my statement that was a positive amount, so there was no money owed.

To my surprise I had been charged intrest on my statement this month though, only to find out today that 'cash transactions' do not have a 30 day free intrest period and that the intrest free period only counts for purchases, cash transactions are charged interest on a daily basis.

I have always been carrying a balance over the past few years, but as from last month I'm paying it in full every month.

Now, what about recurring payments that run via a credit card? Such as a monthly Office365 subscription or a magazine subscriotion etc. Do those count as purchases or cash transactions?

I know I'm late to find out about cash transactions intrest per day, but this would mean that it does not make any sense at all to deposit money to websites like PayPal, Skrill, Neteller etc. using a credit card as you will be charged for every single day of that paid in amount to the day it has been paid back to the credit card?

Comments

  • molerat
    molerat Posts: 33,530 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Those subscriptions will be purchases. Purchasing using Paypal etc funded from a credit card will be a purchase but topping up a balance could be a cash transaction, like betting is.
  • Good to hear that I won't have to change those subscriptions to my debit card then.

    Bad for betting, have been paying ridiculous amounts of interest then depositing to betting sites and online wallets. My own fault though, should have checked earlier.

    Bit of a joke to me those 'interest-per-day' cash transactions. I don't think they do this for credit cards in many other countries than the UK?
  • grumbler
    grumbler Posts: 58,629 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 19 May 2015 pm31 6:01PM
    winger18 wrote: »
    Bad for betting, have been paying ridiculous amounts of interest then depositing to betting sites and online wallets. My own fault though, should have checked earlier.
    If you don't pay the balance in full, extra 1-30 days don't make much difference.
    Bit of a joke to me those 'interest-per-day' cash transactions. I don't think they do this for credit cards in many other countries than the UK?
    Neither they waive the interest on purchased in all countries if paid in full. Even in UK there is at least one card always charging interest from the day of transaction.
  • Ebe_Scrooge
    Ebe_Scrooge Posts: 7,320 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Post from zhoudani reported as spam, along with his others.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.3K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.4K Spending & Discounts
  • 240.9K Work, Benefits & Business
  • 617.2K Mortgages, Homes & Bills
  • 175.7K Life & Family
  • 254.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.