Don't buy stamps on your Credit Card - you'll be cahrged high rates of interest

marshaos

I recently purchased commemorative stamps using my credit card, and I've subsequently been charged 3 months interest at cash advance rate on that purchase, despite paying off my bill in full using DD monthly. My bank (first direct) tells me this is because stamps are considered to be a form of cash! Buying them on your credit card attracts this penalty.
Instead, I was advised, buy stamps using cash or debit card, or, if I must use my credit card, pay in and pay off the purchase on the same day.

marshaos

*charged (apologies for typo)

jonesMUFCforever

Does your card charge you a cash advance fee too?
If so paying it off straightaway will not stop that particular charge but will minimise the interest charged.

blue.peter

This is odd. I bought some ordinary postage stamps (not special commemorative ones) from my local sub-Post Office a few months ago, and paid for them on my TSB credit card. I didn't get stung for either a cash advance fee or any interest. My statement simply shows a transaction of £9.12 (= 12 * 76p), and no extras.

Describing stamps as "a form of cash" is decidedly arguable. I'd say that you're paying for a service: delivery of letters. Anyway, it sounds as if First Direct and TSB differ in their view of it.

Silvertabby

blue.peter said:

This is odd. I bought some ordinary postage stamps (not special commemorative ones) from my local sub-Post Office a few months ago, and paid for them on my TSB credit card. I didn't get stung for either a cash advance fee or any interest. My statement simply shows a transaction of £9.12 (= 12 * 76p), and no extras.

Describing stamps as "a form of cash" is decidedly arguable. I'd say that you're paying for a service: delivery of letters. Anyway, it sounds as if First Direct and TSB differ in their view of it.

Ditto, except I used my M&S card.

Sandtree

Definition of cash varies between banks and similarly its very dependent on the information that the merchant sends through with the transaction. May be considered cash via this merchant but if you buy some stamps along with magazines, lunch etc from WHSmiths then the same bank may not.

eskbanker

blue.peter said:

Describing stamps as "a form of cash" is decidedly arguable.

[Brent believes anything with the Queen's image should be currency] 

David Brent : In fact, a postage stamp is legal tender. A bus driver would have to accept that as currency.

Tim : Yeah, that'd happen.

Gareth : Well, if he doesn't, report him.

Tim : Yeah, I'll report him while I'm walking home.

Gareth : Get a taxi, if you've got enough stamps.

Dawn : Or cash 'em in at the Post Office.

David Brent : Shouldn't have to. Shouldn't have to.

redux

I've paid for postage 3 or 4 times, not actual stamp purchase to take away, without any problems.

I don't see why that should be a separate category.

clive0510

blue.peter said:

This is odd. I bought some ordinary postage stamps (not special commemorative ones) from my local sub-Post Office a few months ago, and paid for them on my TSB credit card. I didn't get stung for either a cash advance fee or any interest. My statement simply shows a transaction of £9.12 (= 12 * 76p), and no extras.

Describing stamps as "a form of cash" is decidedly arguable. I'd say that you're paying for a service: delivery of letters. Anyway, it sounds as if First Direct and TSB differ in their view of it.

I buy my postage stamps from sainsburys with my shopping. I pay on my sainsburys credit card, get extra nectar points.pay no extra's, and card gets paid off direct debit every month. never a problem.

m-holland

Some PO's do card purchases as a two stage transaction.
Stage 1. Cash withdrawal the amount needed for purchase
Stage 2. Use cash withdrawn for the actual purchase
I believe it is cheaper for the PO to do it this way.

penners324

And is potentially fraudulent by the post office. 
I'd be going to that post office branch and demanding they repay the fees and interest incurred due to their systems being set up incorrectly.