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

MDMD

m-holland said:

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 Use cash withdrawn for the actual purchase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.

It’s better than that - the PO will charge a fee to your bank for it if they do it as a withdrawal, if they do it as a purchase, they get charged by your bank

adamp87

MDMD said:

m-holland said:

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 Use cash withdrawn for the actual purchase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.

It’s better than that - the PO will charge a fee to your bank for it if they do it as a withdrawal, if they do it as a purchase, they get charged by your bank

They should tell you if they are doing that surely?

Dr_Crypto

My local PO does do something like that. They are a dry cleaner’s agent so when paying for dry cleaning if you wish to use card it is done as a cash withdrawal. They also operate two tills with one for the grocery/shop side and one for PO services, but neither is treated as a withdrawal just normal retail transactions. 

gt94sss2

marshaos said:

I recently purchased commemorative stamps using my credit card

Was this at a Post Office branch or a different/specialist shop?

WillPS

m-holland said:

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 Use cash withdrawn for the actual purchase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.

This is what I suspect has happened. I'm not sure if Post Office pin pads will warn the customer they may face charges (like cash machines do when you insert a credit card).

I knew this sort of stuff was going on with debit cards being processed as cash withdrawals, I did wonder how many were going to end up stung in this way.

I would be making a formal complaint to Post Office directly.

Stuart_W

I think there are two different issues here.
Whether a purchase is being treated as a "cash-like" transaction by the credit card provider, or whether the post office in question is fiddling their commission by performing a cash withdrawal then a cash sale rather than processing a purchase.
If it is the latter, a complaint to the post office is in order, along with a refund of all incurred charges. Post offices should not be doing this. Some accounts may charge for cash withdrawals, or have limits even if they're debit cards. When a customer is making a purchase they are not requesting a cash withdrawal. 
If OP still has their receipt from the sale of the stamps, it will show if they paid in card or cash. The credit card will will also detail either a cash withdrawal or a cash-like purchase.
Stamps, gift cards and savings stamps,all count as purchases from my local co-op with my card provider, so interest free when pay in full, and get credit card cashback, but it can vary by shop and by card provider.  I have bought a One4All gift card from my local post office on a credit card and it went through as a purchase fine with my card provider.

phillw

eskbanker said:

[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.

Stamps are not legal tender, but also legal tender would not be applicable for paying for a bus ticket when getting on a bus as it's not extinguishing a debt.

jon81uk

phillw said:

eskbanker said:

[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.

Stamps are not legal tender, but also legal tender would not be applicable for paying for a bus ticket when getting on a bus as it's not extinguishing a debt.

That's the joke.

maferit1909

Stuart_W said:

I think there are two different issues here.
Whether a purchase is being treated as a "cash-like" transaction by the credit card provider, or whether the post office in question is fiddling their commission by performing a cash withdrawal then a cash sale rather than processing a purchase.
If it is the latter, a complaint to the post office is in order, along with a refund of all incurred charges. Post offices should not be doing this. Some accounts may charge for cash withdrawals, or have limits even if they're debit cards. When a customer is making a purchase they are not requesting a cash withdrawal. 
If OP still has their receipt from the sale of the stamps, it will show if they paid in card or cash. The credit card will will also detail either a cash withdrawal or a cash-like purchase.
Stamps, gift cards and savings stamps,all count as purchases from my local co-op with my card provider, so interest free when pay in full, and get credit card cashback, but it can vary by shop and by card provider.  I have bought a One4All gift card from my local post office on a credit card and it went through as a purchase fine with my card provider.

You can’t do cash withdrawals using a credit card at the post office, only debit cards can. When doing a cash withdrawal as soon as a credit card is inserted into the card reader it declines. 

The problem is the is the cc company treating stamps as a cash advance. 

EarthBoy

marshaos said:

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.

How did First Direct know that you'd bought stamps, whether commemorative or ordinary ones?  All they will know is the retailer where you'd used the card, i.e. the Post Office.  You have could have bought envelopes, or pens, or paid to send a parcel.  If the Post Office was part of a general store, you could even have bought bread and milk etc.