Credit card: recurring payment

winger18

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?

molerat

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.

winger18

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

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

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