Cash advance fee

Pollycat

I bought an item of 2nd hand jewellery from eBay using my Paypal account which is linked to my credit card.

The correct Paypal amount appeared on my statement but also a £3.00 (5%) charge called 'Cash advance fee'.

I've been querying this fee with my c/c company over the last week via email and they've come back to me 3 times insisting it is a 'cash advance fee'.
I've told them what the item is but they still say it's 'cash/quasi cash'.

Now, I've bought lots of stuff from eBay - both private sellers and business sellers - always paid by Paypal and never been charged a 'cash advance fee'.

It most certainly wasn't a cash advance, it was an item of jewellery.
In fact, in the 2 weeks previously I've bought 2 very similar items - also from Ebay and also paid by Paypal and not been charged any fee other than the price of the item.

Where do I go from here?
I appreciate that it's not a lot of money in the scheme of things but it's my money and I've not had a cash advance.

Thanks

molerat

What MCC / retailer description has been used ?

Pollycat

Hi
Thanks for the reply.

I've done some more digging and I think it's actually the way the seller classed the transaction that has caused the problem.

It was a business seller and I've bought other items from eBay business sellers and they've classed the transaction as a number of different things.

This seller has - for some bizarre reason - put the 'Merchant category Name' as 'Money Transfer' so the c/c company have picked this up and levied the fee.

I've contacted the seller and said no way is the purchase of a piece of jewellery a 'money transfer' and asked how they propose to resolve it.

If I get no joy, I'll raise it with the eBay Resolution Centre.

Thanks

bearcat16

It's not just the fee, credit card cash advances are recorded by credit reference agencies and adversely affect your file.

Lenders consider someone who uses a credit card for a cash advance as either in desperate straits or poor at managing their finances.

I'd be highly annoyed!

Pollycat

bearcat16 wrote: »

It's not just the fee, credit card cash advances are recorded by credit reference agencies and adversely affect your file.

Lenders consider someone who uses a credit card for a cash advance as either in desperate straits or poor at managing their finances.

I'd be highly annoyed!

I'm bloody furious - even though it's a very small amount.

SnowTiger

Was the payment made via ebay? Does it appear under your list of ebay transactions?

Pollycat

I'm not sure, snowtiger.

I bid on the listing, won it, logged into my paypal account and paid.

It's showing on my eBay account under 'orders' as 'PAID' with the other items I've bought & paid for.

SnowTiger

Pollycat wrote: »

I'm not sure, snowtiger.

I bid on the listing, won it, logged into my paypal account and paid.

It's showing on my eBay account under 'orders' as 'PAID' with the other items I've bought & paid for.

I'm wondering if the purchase was made via PayPay, but outside of ebay.

That might explain why it's a cash transaction rather than a purchase.

Pollycat

SnowTiger wrote: »

I'm wondering if the purchase was made via PayPay, but outside of ebay.

That might explain why it's a cash transaction rather than a purchase.

It was definitely an auction on eBay, not even 'buy it now' (unless I've misunderstood your point).

Thanks

takman

I think you should also contact PayPal and tell them that they have the wrong Merchant Category on their business account.
I would also send the jewellery back and get a full refund.

I've actually sent money as a gift on PayPal and got them to send it back to me so I could use my interest free purchases period to get cash. This didn't even go through as a cash advance!. So it's definitely the seller who has messed up!

Pollycat

takman wrote: »

I think you should also contact PayPal and tell them that they have the wrong Merchant Category on their business account.
I would also send the jewellery back and get a full refund.

I've actually sent money as a gift on PayPal and got them to send it back to me so I could use my interest free purchases period to get cash. This didn't even go through as a cash advance!. So it's definitely the seller who has messed up!

Thanks.

I've emailed the seller and they've sent me a reply saying they're closed (it was yesterday) but will get back to me.
I'm not sure if it's an automated response.

I'll see what they have to say before taking any further action but I will definitely take it up with Ebay and Paypal if I get no joy.
I'm not going to let this go.

I'm thinking the best thing is for them to cancel the payment altogether and I'll pay again with the right Merchant Category.
Then I can argue with the credit card company that the £3.00 should be removed as I didn't have a cash advance.
Does this sound sensible? And do-able?

I would send the jewellery back......but I love it, it's out-of-the-ordinary.
I would have paid an extra £3.00 for it - but that's not the point, is it.


It's actually made me wonder.......
they're not a big Ebay seller - around 600 feedback - but maybe I'm the first one to notice about the cash advance fee.