Accidentally used credit card in cashpoint

zagfles

Ebe_Scrooge said:

Brie said:

why would there be a fee for a cash withdrawal??  None of the cards I have charge a fee for withdrawing cash but they do charge interest from day 1.  Fees only happen if I either use a fee charging ATM (haven't in the last decade) or am outside the UK.

The best thing to do (IMHO) is to simply pay the £50 on to the card asap.  All payments have to be allocated to that part of the balance that has the highest interest rate and that will be the cash withdrawal.   There will still be some trailing interest but you might eliminate some of that by paying £1 more than your balance at the end of the month.  That would also prevent any issues with further purchases next month attracting interest.  

Most credit cards charge a fee for cash withdrawals, whether in the UK or abroad.  There may be exceptions of course, but the majority will charge a fee plus interest.

You're correct in that an immediate payment of £50 will be allocated to the highest-interest debt, which is almost always a cash withdrawal.  The trailing interest will be peanuts, and will have no effect upon the standard "no interest on purchases" rule so long as you pay the next statement in full as usual.  The standard rule for any card where you've paid interest - whether by making a cash withdrawal or by paying less than the full statement balance - is that after you've paid the next 2 statements in full, it'll all sort itself out.

Payments will always be allocated to a statemented balance before unstatemented. That trumps the rule about highest interest debt first (credit cards have to work this way when you think about it, it's not some cunning trap for the unwary).

So for instance if the OP's statement was produced on the 1st of the month, due to pay in full by DD on the 26th, and the cash withdrawal was made on the 6th, then if he just pays £50 on the 8th that will go towards the statement balance, not the cash advance. So he'll pay 20 days interest on the cash advance. Or maybe more, if the DD is reduced to account for the £50 payment.

To pay off the cash advance the OP needs to make sure the previous statement balance is cleared in full first.

phillw

Ebe_Scrooge said:

phillw said:

Apart from AA ... messed up the DD, they are quite harsh

If you were Drunk and Disorderly at an Alcoholics Anonymous meeting, I'm not surprised they were harsh on you!  

AA credit card, off the top of my head they reduced the Direct Debit by the Debit Card transactions I had requested and then refused 2 of the Debit Card transactions (or maybe they didn't clear in time) which meant I had an outstanding balance and so they charged me interest.

CRISPIANNE3

Not quite the same but I was buying euro's on my Halifax credit card. Unfortunately I used the incorrect card from Halifax and was charged £22.00. I rang Halifax and they refunded the fee.  I should have used the HX Clarity card which would have been fee free for buying currency. 

Ebe_Scrooge

CRISPIANNE3 said:

Not quite the same but I was buying euro's on my Halifax credit card. Unfortunately I used the incorrect card from Halifax and was charged £22.00. I rang Halifax and they refunded the fee.  I should have used the HX Clarity card which would have been fee free for buying currency. 

Yep, that's always one to watch out for - most cards will class buying foreign currency as a cash withdrawal and charge accordingly.