Accidentally withdrew on credit card

w00519772

It appears that I withdrew ten pounds on my Tesco Credit Card at the ATM on Thursday this week. My Credit Card looks similar to my debit card and therefore it appears that I have made a genuine mistake.

I paid off the balance yesterday (as soon as I found out). Tesco Bank have charged me £3 and think the interest for one day will be about £1-£2 pounds (apparently it is 30% per year). I have a few questions:

1) Will this affect my credit rating? Tesco Bank said no, however I am not sure that I trust the representative on the phone.
2) £1-£2 is a bit steep for 30% APR. I only "borrowed" the money for one day. Therefore my calculation is:

(30/100)*10 = £3 per year = Less than 1p per day. Surely I will be charged less than 1p.

3) Is it worth making a complaint? A few weeks ago I bought some milk from my local Tesco store, which had a very small (pin) hole in it. It flooded my fridge after two days and ruined some stuff - plus I lost a lot of the mil. I guess I could use this as ammunition. It has happened a few times prior (I always shop at Tesco).

I realize it is only £3 + interest of two days. I guess I should just learn from it and move on?

YorkshireBoy

w00519772 wrote: »

I guess I should just learn from it and move on?

What have you learned?...


Keep credit and debit cards in separate parts/sides of your wallet?
Set a different PIN for debit and credit cards?
Read the "your card issuer may make a charge for this transaction" message displayed on the ATM?
Something else?


The amount of interest will depend on whether a) you had a pre-existing balance, b) whether Tesco apply payments to statemented transactions before unstatemented transactions, and other factors, but will be pennies rather than pounds.

w00519772

YorkshireBoy wrote: »

What have you learned?...


Keep credit and debit cards in separate parts/sides of your wallet?
Set a different PIN for debit and credit cards?
Read the "your card issuer may make a charge for this transaction" message displayed on the ATM?
Something else?


The amount of interest will depend on whether a) you had a pre-existing balance, b) whether Tesco apply payments to statemented transactions before unstatemented transactions, and other factors, but will be pennies rather than pounds.

Yes, different pin codes for one (all mine are the same). I guess I do not have grounds for a "complaint" as it was my fault. I guess I was just looking for some goodwill particularly as I had problems with the milk! I guess Tesco Bank and Tesco Stores are separate entities.

chattychappy

Different PINs are great, until you do what I did and stubbornly typed in the "wrong PIN" enough times to get the card swallowed. It was the right PIN but the wrong card... ha ha ha.

To the OP:
I paid off the balance yesterday (as soon as I found out). Tesco Bank have charged me £3 and think the interest for one day will be about £1-£2 pounds (apparently it is 30% per year).

What "balance"? The whole amount owing as of that day? Note YB's comments about allocation of payments. The safest would be to pay off the entire balance (statemented and unstatemented and the £10+£3), though it should be enough just to pay the previous statement balance (if still outstanding) plus the £10+£3. If you have a DD, be mindful of the interaction between DDs and manual payments and be sure to have enough cleared balance to cover the payments you are making.

1) Will this affect my credit rating? Tesco Bank said no, however I am not sure that I trust the representative on the phone.
Cash withdrawals are often noted by the credit reference agencies, but it is a service offered not a crime. I often do ATM withdrawals because by using Halifax Clarity/Santander Zero it's the cheapest way to get foreign cash. It's never caused me a problem. I wouldn't worry - it's not a like a missed payment or going over your limit.

2) £1-£2 is a bit steep for 30% APR. I only "borrowed" the money for one day. Therefore my calculation is:

(30/100)*10 = £3 per year = Less than 1p per day. Surely I will be charged less than 1p.

Yes the £1 to £2 figure can't be right, even if it took a few weeks to pay it off. But as noted, you might not have "borrowed" it for just one day. As a technicality, you did borrow it rather than "borrow" it!!

3) Is it worth making a complaint? A few weeks ago I bought some milk from my local Tesco store, which had a very small (pin) hole in it. It flooded my fridge after two days and ruined some stuff - plus I lost a lot of the mil. I guess I could use this as ammunition. It has happened a few times prior (I always shop at Tesco).

Ridiculous. By all means complain to the shop about the milk. But you have no legitimate complaint with the CC people. If you want your £3 back, I'd phone them, say you messed up, suggest that the usual £3 fee is a bit disproportionate given you only took out £10 and could they do a deal. You never know.

I realize it is only £3 + interest of two days. I guess I should just learn from it and move on?
The whole business model revolves around cross-subsidies. If you stick to purchases and pay in full, you get a good deal - the merchant is out of pocket cos of commission. If you take up a 0% BT deal and stick to the rules, pay it back on time, then the CC has lost out because they were hoping you'd run over the expiry date or mix in purchases, thus incurring interest. On this one-off occasion, you slipped up and they made £3. Fair dos.

bengal-stripe

w00519772 wrote: »

3) Is it worth making a complaint? A few weeks ago I bought some milk from my local Tesco store, which had a very small (pin) hole in it. It flooded my fridge after two days and ruined some stuff - plus I lost a lot of the mil. I guess I could use this as ammunition. It has happened a few times prior (I always shop at Tesco).

Oh dear! - You really are scraping the bottom of the (milk) barrel. :rotfl:

McKneff

What has taking some small amount of cash on a credit card to do with a bottle of milk flooding your fridge.

Did you not open your fridge door for some milk therefore noting the 'flooding' a lot earlier.

Smodlet

Getting all churned up over three quid... You have learned a lesson, OP, you have far more chance of remembering it because it has cost you money. "People never value advice they have not had to pay for." Nosey Parker, The Land of Green Ginger, written in the 1930s, for children.

dj1471

w00519772 wrote: »

(30/100)*10 = £3 per year = Less than 1p per day. Surely I will be charged less than 1p.

Tesco charge a minimum fee of £3 for cash advances, on top of daily interest.

agrinnall

I have to admit I did exactly the same thing a few weeks ago, with even less excuse as the credit card looks nothing like the debit card from the same bank (although they do have the same PIN). I waited until the withdrawal (£100) was showing on my CC account online then transferred £103 to pay the cash amount plus the fee. My next statement showed that I'd also been charged 7p interest. So that was a £3.07 lesson in having my wits about me.

w00519772

agrinnall wrote: »

I have to admit I did exactly the same thing a few weeks ago, with even less excuse as the credit card looks nothing like the debit card from the same bank (although they do have the same PIN). I waited until the withdrawal (£100) was showing on my CC account online then transferred £103 to pay the cash amount plus the fee. My next statement showed that I'd also been charged 7p interest. So that was a £3.07 lesson in having my wits about me.

Thanks for that. I went over my credit card limit once when I was "stoozing". I spoke to the bank (Santander) and they refunded the fee. I have never made that mistake again. I was hoping fir such a gesture from Tesco bank.

buglawton

w00519772 wrote: »

3) Is it worth making a complaint? A few weeks ago I bought some milk from my local Tesco store, which had a very small (pin) hole in it. It flooded my fridge after two days and ruined some stuff - plus I lost a lot of the mil. I guess I could use this as ammunition. It has happened a few times prior (I always shop at Tesco).

Look, no point in crying over spilt m....
Oh never mind.