Clarity Card Query

Cotta

Hi All,


I hope this is the correct area to post this. What happens when the Credit Card is in the plus? My card has an available balance of £2000, however what happen if the account is in the plus e.g. 2050?


Thanks in advance.

[Deleted User]

You have £2050 available to spend.

Alternatively, if you deliberately put a large amount of credit on to it, it may be returned or your account closed.

What specifically is your situation?

Cotta

Deleted_User wrote: »

You have £2050 available to spend.

Alternatively, if you deliberately put a large amount of credit on to it, it may be returned or your account closed.

What specifically is your situation?

It's just an interim card that is used with Paypal, it currently sits on £2000 available now, if I transferred £50 from this account into my current account and then transferred £50 from my Paypal account onto my Clarity card would this be allowed?

[Deleted User]

Technically, no. In reality, you'd probably get away with it.

Cotta

Deleted_User wrote: »

Technically, no. In reality, you'd probably get away with it.

Thanks, so basically I need to change my system?

chattychappy

Cotta wrote: »

Thanks, so basically I need to change my system?

Perhaps you should describe your system!!

Cotta

chattychappy wrote: »

Perhaps you should describe your system!!

It's not really a system, my clarity card simply receives payment from my Paypal account and I'm worried what might happen if it goes over £2000.

chattychappy

Took me a while to understand. I don't think you should think in terms of "my CC has an available balance of XXX".

The £2000 is a credit limit - the maximum amount you can owe. You start off with a zero balance. Spending increases what you owe (negative balance) as does interest. Making payments reduces the balance. If you pay off the whole balance, it becomes zero again.

So you are saying that you are using Clarity to RECEIVE money from Paypal? Well, that would be treated as a payment, reducing any balance owing.

You should not put your account into credit. This can happen "accidentally" - eg through refunds, or if you place a bet and win. If you do put an account into credit, you risk the amount concerned being frozen, the account being blocked or even closed.

Experience on here is that most of the time, nothing happens and you "get away with it". But regularly putting your account into credit can look suspicious from a money laundering point of view.

Really credit cards are designed for spending whereupon you pay it back out of your own funds. They are not designed as a means to receive payments from third parties. If you are receiving an income from Paypal, this "should" really go to a bank current account.

Cotta

chattychappy wrote: »

Took me a while to understand. I don't think you should think in terms of "my CC has an available balance of XXX".

The £2000 is a credit limit - the maximum amount you can owe. You start off with a zero balance. Spending increases what you owe (negative balance) as does interest. Making payments reduces the balance. If you pay off the whole balance, it becomes zero again.

So you are saying that you are using Clarity to RECEIVE money from Paypal? Well, that would be treated as a payment, reducing any balance owing.

You should not put your account into credit. This can happen "accidentally" - eg through refunds, or if you place a bet and win. If you do put an account into credit, you risk the amount concerned being frozen, the account being blocked or even closed.

Experience on here is that most of the time, nothing happens and you "get away with it". But regularly putting your account into credit can look suspicious from a money laundering point of view.

Really credit cards are designed for spending whereupon you pay it back out of your own funds. They are not designed as a means to receive payments from third parties. If you are receiving an income from Paypal, this "should" really go to a bank current account.

Perfect, I will change my settings to ensure that from now on it goes to my bank account instead.


Thank you.