M&S Credit card and Balance Transfers beware

canadianBill

Hello there,

I recently dealt with an issue at M&S Bank that I thought would be useful for others to know to avoid fees that might not readily be evident. If you have a balance transfer with M&S credit card and the amount is outstanding (even if this is 0%) and then you make a purchase, wait until your statement arrives before paying funds to clear the purchase. Unlike other cards I have used, I made a purchase on my credit card and immediately tried to clear the balance but from the system's reporting it issued the funds to pay down the balance transfer instead of the purchase, so by the time the statement arrived and subsequent statements I was paying interest on the purchase (despite paying it off in full following the purchase date).

I was able to talk to the service team to get the charges reimbursed but it is a warning to people to not make purchases on top of a balance transfer and then try to pay them off immediately. I was told I would not accrue interest if I waited until the statement to arrive, which seemed dubious as that is how credit cards make their money, but I was being charged interest for having paid the purchase balance as this was not seen as going towards the actual purchase but rather the balance transfer.

Just a warning to M&S card owners or if anyone else knows of other credit card companies who follow this system. I have been fortunate enough to demonstrate I paid off the purchase balance in good faith and they are refunding me the interest charges but it has meant multiple calls to different people to get traction on this.

Regards
Bill

molerat

The majority of cards work this way which is why the general advice is never to purchase on a card that is carrying a BT.

cooltt

molerat wrote: »

The majority of cards work this way which is why the general advice is never to purchase on a card that is carrying a BT.

I have an M&S card recently opened with 0% BT and Purchases for 25 months. Been spending and paying off balance before statement arrival with no such problems.

Dobbibill

cooltt wrote: »

I have an M&S card recently opened with 0% BT and Purchases for 25 months. Been spending and paying off balance before statement arrival with no such problems.

That would be due to the type of offer you have. 0% on purchases as well as BT.

MABLE

canadianBill wrote: »

Hello there,

I recently dealt with an issue at M&S Bank that I thought would be useful for others to know to avoid fees that might not readily be evident. If you have a balance transfer with M&S credit card and the amount is outstanding (even if this is 0%) and then you make a purchase, wait until your statement arrives before paying funds to clear the purchase. Unlike other cards I have used, I made a purchase on my credit card and immediately tried to clear the balance but from the system's reporting it issued the funds to pay down the balance transfer instead of the purchase, so by the time the statement arrived and subsequent statements I was paying interest on the purchase (despite paying it off in full following the purchase date).

I was able to talk to the service team to get the charges reimbursed but it is a warning to people to not make purchases on top of a balance transfer and then try to pay them off immediately. I was told I would not accrue interest if I waited until the statement to arrive, which seemed dubious as that is how credit cards make their money, but I was being charged interest for having paid the purchase balance as this was not seen as going towards the actual purchase but rather the balance transfer.

Just a warning to M&S card owners or if anyone else knows of other credit card companies who follow this system. I have been fortunate enough to demonstrate I paid off the purchase balance in good faith and they are refunding me the interest charges but it has meant multiple calls to different people to get traction on this.

Regards
Bill

Its now normally the norm. That why I use my cards for different purposes. However a useful reminders for newbies.

cooltt

Dobbibill wrote: »

That would be due to the type of offer you have. 0% on purchases as well as BT.

And that's my point.
If the op wanted to do that then that's the offer he should of chosen. In his case M&S were simply exercising their T&C which the OP clearly didn't read.

I wouldn't have refunded interest due to a customer not adhering to or understanding the T&C's. Their a business not a charity.

canadianBill

Here is my point, the purchase I made was for M&S foreign money which according to their T&Cs (which yes I did read, thank you) said if you used your M&S card there would be no interest charged for the transaction. So I paid off that amount in full but since it fell before the statement date, then it meant the funds were used to pay down the balance transfer instead of paying the 'purchase' of foreign money (from an M&S Travel shop in store). This meant I was being charged interest which I should not have been charged in the first place due to it being traveller money (least according to the T&Cs from their website and confirming this with the person behind the till), but alas M&S still charged me interest assuming this was a regular purchase transaction.

I am raising awareness of this so that other people do not follow into this trap. I never use a balance transfer card for purchases as that is the point of a balance transfer card but the T&C said no interest would be charged when purchasing foreign money through their travel service when one used an M&S credit card. However I was and think others might be as well.

msallen

canadianBill wrote: »

... the T&C said no interest would be charged when purchasing foreign money through their travel service when one used an M&S credit card.

Are you sure that's exactly what it said? I can imagine it saying that a cash advance charge would not be levied, or that it would be treated as a purchase (and therefore not charged interest from day one), but I can't see that it could possibly just say that no interest would be charged - for example how long would this apparent interest free loan be for ? A month, ever?

Bogalot

msallen wrote: »

Are you sure that's exactly what it said? I can imagine it saying that a cash advance charge would not be levied, or that it would be treated as a purchase (and therefore not charged interest from day one), but I can't see that it could possibly just say that no interest would be charged - for example how long would this apparent interest free loan be for ? A month, ever?

You're right:

Preferential travel money rates when you use your M&S Credit Card to order M&S Travel Money online or by phone. There’s no cash advance fee – plus you get up to 55 days' interest-free credit, just like other card purchases. There are up to 54 currencies available and we’ll even deliver to your door. Delivery is free for orders of £500 or more and costs just £5 for orders under £500.

molerat

From the BT and 0% spend card but I expect it would be the same.
http://bank.marksandspencer.com/banking/credit-card/overview/#further-details

Up to 55 days' interest free credit

With the M&S Credit Card, you’ll receive up to 55 days’ interest-free credit when you pay your balance in full and on time each month.
............................
Travel money made easy

Preferential travel money rates when you use your M&S Credit Card to order M&S Travel Money online or by phone. There’s no cash advance fee – plus you get up to 55 days' interest-free credit, just like other card purchases. There are up to 54 currencies available and we’ll even deliver to your door. Delivery is free for orders of £500 or more and costs just £5 for orders under £500.

YorkshireBoy

msallen wrote: »

Are you sure that's exactly what it said? I can imagine it saying that a cash advance charge would not be levied, or that it would be treated as a purchase (and therefore not charged interest from day one), but I can't see that it could possibly just say that no interest would be charged - for example how long would this apparent interest free loan be for ? A month, ever?

That's exactly what it says about foreign currency purchases.

As to the OP's issue, interest is only waived if the previous balance has been cleared in full...and it wasn't, because there was a BT deal running. That's what happens with every card. However, despite searching the T&Cs on their website just now I can't find this clause. Maybe the OP, or anyone else with a printed copy mailed with the card, could confirm?


EDIT: Here's what it says in the summary box...

[FONT=M&SLondon-Regular][FONT=M&SLondon-Regular]
Up to 55 days for purchases when you pay your balance in full every month by the due date[/FONT][/FONT]

[FONT=M&SLondon-Regular][FONT=M&SLondon-Regular]
[/FONT][/FONT]