Transferwise & cash advance fee

LoveTravel

I've used Transferwise to make foreign currency bank transfers and got burnt once so would like to share my experience.

Transferwise gives you two options to pay them: 1) credit card and 2) bank transfer to Transferwise's (UK) bank account. There's a tip next to credit card saying its 'faster', yet, they don't mention if you pay them by credit card, then your credit card company may charge you a 'cash advance fee'.

In my case, MBNA charged me £17 (5%) for a £325 transfer, and of course the interests that kicks in immediately after the transaction!

So BEWARE!!

[Deleted User]

Yep - don't use your card for cash advances unless you really have to.

System

I'm curious - what did you think the transaction would be?
A purchase, balance transfer or cash advance?

*California*

I had exactly the same experience.

*California*

I saw that before but it says ''In some cases''???

eDicky

LoveTravel wrote: »

Transferwise gives you two options to pay them: 1) credit card and 2) bank transfer to Transferwise's (UK) bank account.

Actually, the first option is to pay by 'debit card or credit card'. To avoid the CC handling fees as well as the cash advance fees, surely the natural choice would be debit card.

grumbler

*California* wrote: »

I saw that before but it says ''In some cases''???

This means: check with your CC provider. Some CC companies don't charge for cash advances.

That said, it's Transferwise that marks the transaction as a cash advance and they know this. Then it's up to the CC company either to charge or not to charge for a cash advance.

chattychappy

A few years ago, I was a regular user of a "dodgy" bureau de change. They'd give you the cash and give you the choice - put it through as a purchase or put it through as a cash advance. They simply charged you a couple of % more for putting it through as a purchase.

No doubt all this was against the merchant agreement, but it was pretty clear to me. They chose how to present the transaction, and paid the fee accordingly.

*California*

I am not worried that much about a cash advance fee but more about my credit report. Cash advances are not good on the credit report.

chattychappy

Don't worry mate. I'm getting cash advances every week and generally have no problems getting credit. I think it's only negative when combined with other factors - eg paying minimums only. (Some stressed customers might be pulling out cash just to recycle around to meet the minimum.)