Using Revolut with 0% purchase card

meantime

It's been pointed out on HUKD that you can load a Revolut card from a credit card for a 1% fee and then transfer balance to bank account, so loading it from a 0% purchase card in effect turns that into a balance transfer card with a 1% fee.

Sounds tempting, is there any downside other than lack of FSCS protection for Revolut? (you could transfer money in small amounts to avoid risk of losing much if Revolut failed)

eDicky

In effect you're asking whether loading Revolut from your credit card is treated as a purchase by the CC company? I'm inclined to think so, but not sure. If you can borrow funds at a cost of 1% then withdraw them to your bank account to get 3% interest (which you can), and there are no other implications, it's probably worth trying it to find out...

Anthorn

meantime wrote: »

It's been pointed out on HUKD that you can load a Revolut card from a credit card for a 1% fee and then transfer balance to bank account, so loading it from a 0% purchase card in effect turns that into a balance transfer card with a 1% fee.

Sounds tempting, is there any downside other than lack of FSCS protection for Revolut? (you could transfer money in small amounts to avoid risk of losing much if Revolut failed)

Inquire with your bank / card issuer first: Likely to be treated as a currency purchase and/or money transfer and could be declined if the card doesn't allow those. Could also incur a fee and interest and loss of the interest-free period.

meantime

Revolut have told me that all CC issuers treat Revolut top-ups as purchases, but I'm taking that with quite a large pinch of salt.

eDicky

meantime wrote: »

Revolut have told me that all CC issuers treat Revolut top-ups as purchases, but I'm taking that with quite a large pinch of salt.

For me it's believable, what I expected. Similar to any top-up for mobile phone etc.

Thinking about it, credit card companies take an interchange and other fees from the merchant when you make a purchase, their profit, but have to pay something to an ATM operator when you make a withdrawal so they usually charge the card user a fee and/or interest for this.

The merchant often charges extra for CC use to cover the fees they incur, so Revolut's 1% fee is presumably a bit more than what it costs them and they are satisfied.
Any prepaid card that allows CC top-up will charge extra (usually 2-3%), which also goes to indicate that it's a purchase.

The credit card company take their fee from Revolut, as they would with any purchase on their 0% card, and should also have nothing to complain about(?)

Everybody wins, except the bank paying the 3% (or more?) interest on your borrowed money, but it's no concern to them where it comes from.
Or if the intention is 'money transfer' from the 0% card - Why not..?

How is my logic? I've never used a 0% purchases credit card so I'm ready to have it dashed by those more experienced here. Otherwise I might get a card and try it myself when back in UK, just for the hell of it.

System

Do you work there eDicki?

JuicyJesus

meantime wrote: »

Revolut have told me that all CC issuers treat Revolut top-ups as purchases, but I'm taking that with quite a large pinch of salt.

That's not up to Revolut and they shouldn't be giving assurances they can't give on behalf of third parties. Intuitively I'd say that it'd be treated as "cash like". Some cards even have it in their T&Cs that putting through transactions to obtain cash when you know it will be processed as a purchase is a breach of the agreement (principally Amex).


I would tread carefully because frankly, for the tiny benefit of this it's not really worth the hassle - especially not when you can get very low fee balance transfer cards (MBNA do 0.64%).

redux

It is some kind of idea, but why bother with it when compared to looking at credit cards with standard balance transfer promotional offers instead?

eDicky

SPalin wrote: »

Do you work there eDicki?

Where, here in Nepal? Sometimes, but I'm supposed to be retired. Any particular reason for asking, Sarah?

eDicky

JuicyJesus wrote: »

I would tread carefully because frankly, for the tiny benefit of this it's not really worth the hassle - especially not when you can get very low fee balance transfer cards (MBNA do 0.64%).

redux wrote: »

It is some kind of idea, but why bother with it when compared to looking at credit cards with standard balance transfer promotional offers instead?

So it's not such an appealing plan, considering the grand scheme of things. Perhaps the OP is attracted because of some limitations on what cards they can get.