Mortgage valuation fee Credit Card "cash transaction"

AGreenland

Just had the same problem. Paid £700 in advance for financial advice from a mortgage broker so needed the protection of a credit card (chargebacks etc in case the service isn't provided or broker goes sick and can't refund the payment). £27 was deducted on my statement as a cash transaction fee. I phoned and said this was for a service and was told that cash transaction fees are not only applied to the categories (money transfers, share purchases, debt repayments etc) in their terms and conditions but to any transaction with an organisation considered by Tescobank to be a 'financial  institution'. They agreed to refund the fee on a goodwill basis, but in essence said that in future I should assume any purchase of services from a financial institution would be charged as a cash transaction rather than a purchase. 

jonesMUFCforever

AGreenland said:

Just had the same problem. Paid £700 in advance for financial advice from a mortgage broker so needed the protection of a credit card (chargebacks etc in case the service isn't provided or broker goes sick and can't refund the payment). £27 was deducted on my statement as a cash transaction fee. I phoned and said this was for a service and was told that cash transaction fees are not only applied to the categories (money transfers, share purchases, debt repayments etc) in their terms and conditions but to any transaction with an organisation considered by Tescobank to be a 'financial  institution'. They agreed to refund the fee on a goodwill basis, but in essence said that in future I should assume any purchase of services from a financial institution would be charged as a cash transaction rather than a purchase. 

You also need to check your next statement to make sure any interest that would have been charged is also either cancelled or refunded.

Nikki3000

The exact same thing just happened with me through Tesco CC. Remortgage arrangement fee charged as a cash transaction, I think in total I was charged about £45 for transaction fee and interest. I called to raise it with them and they basically told me that yes, that is what happens with payments to a financial institution and the charges still stand. I told them I shall transfer the balance and close the account, they just said "ok" so that's exactly what I did. Such a shame! At least we can warn other people about it now. It's such an innocent mistake to make because other than looking on this thread, how would you know that would be classed as a cash transaction? Crazy

[Deleted User]

Nikki3000 said:

The exact same thing just happened with me through Tesco CC. Remortgage arrangement fee charged as a cash transaction, I think in total I was charged about £45 for transaction fee and interest. I called to raise it with them and they basically told me that yes, that is what happens with payments to a financial institution and the charges still stand. I told them I shall transfer the balance and close the account, they just said "ok" so that's exactly what I did. Such a shame! At least we can warn other people about it now. It's such an innocent mistake to make because other than looking on this thread, how would you know that would be classed as a cash transaction? Crazy

Make sure you leave the DD active for 2 months in case of trailing interest etc

molerat

Tesco seem to be about the strictest in their definition of cash transaction, tales of them charging for loading a school dinner card.

[Deleted User]

molerat said:

Tesco seem to be about the strictest in their definition of cash transaction, tales of them charging for loading a school dinner card.

Let's not be naïve here, people were manufacturing spending on their credit/debit cards only to get clubcard points and they've tightened up their rules across the board. I wouldn't be entirely surprised if it featured in their reason to withdraw their current accounts.  

K_S

Definitely not standard practice, Tesco is likely an exception. I've never had a client complain that their fee payment to me or the lender (usually the valuation fee or booking fee) has been treated as a cash transaction by the card provider.

Definitely good to know though so I can give my clients fair warning.