Accidently withdrew cash with my credit card - Options?

Tom_Hendo

Hi

I made the mistake of withdrawing cash with my Credit Card last night (Or technically this morning). Its got a large balance on already, with a purchase free period card for another 20 months so I don't want to pay the full balance to ensure the cash withdrawal doesn't generate interest. Is there any way I can pay off that single transaction, or has anyone had a similar circumstance with an alternate option? 

Thanks, 

***EDIT: RESOLVED***

Contacted the Bank. They Waived the 3% fee and the cash withdrawal interest for 2 months (didn't ask, but generous). They also confirmed that paying money into the card will stop the highest cost interest, in my case this will be the cash withdrawal. Advised to pay the money after the statement including that payment is generated to ensure it targets that payment. Set up the future dated payment to do this.  

born_again

Ring them up, explain situation. They may change it to a purchase so you do not incur charge or interest.

Ebe_Scrooge

You could try phoning them, as above.

But if they won't change it to a purchase (no reason why they should, to be honest), then here's what to do:

First, check your T&Cs to see what the fees will be (typically a fixed fee of, say, £3 or something, plus a percentage of the amount withdrawn).

Next, keep a close eye on your account online.  Wait until you see the transaction appear on your account.

Then, make a payment equivalent to the withdrawal amount, plus fees, plus (for good measure) a couple of quid extra (not strictly necessary, but it doesn't hurt).

That should mean you pay zero or very little interest, depending on the timings.  But it's important to wait until you see the withdrawal appear as a cleared transaction on your account (it can take a day or two to appear) before making the payment.  Otherwise your payment will go towards the existing balance.

Tom_Hendo

Ebe_Scrooge said:

You could try phoning them, as above.

But if they won't change it to a purchase (no reason why they should, to be honest), then here's what to do:

First, check your T&Cs to see what the fees will be (typically a fixed fee of, say, £3 or something, plus a percentage of the amount withdrawn).

Next, keep a close eye on your account online.  Wait until you see the transaction appear on your account.

Then, make a payment equivalent to the withdrawal amount, plus fees, plus (for good measure) a couple of quid extra (not strictly necessary, but it doesn't hurt).

That should mean you pay zero or very little interest, depending on the timings.  But it's important to wait until you see the withdrawal appear as a cleared transaction on your account (it can take a day or two to appear) before making the payment.  Otherwise your payment will go towards the existing balance.

Thanks, this was really helpful. 

molerat

Which card is it ? You need to check the T&Cs as some will pay off any outstanding higher interest cleared transaction and others will not pay it off until it has appeared on a monthly statement.

Tom_Hendo

molerat said:

Which card is it ? You need to check the T&Cs as some will pay off any outstanding higher interest cleared transaction and others will not pay it off until it has appeared on a monthly statement.

Ebe_Scrooge said:

You could try phoning them, as above.

But if they won't change it to a purchase (no reason why they should, to be honest), then here's what to do:

First, check your T&Cs to see what the fees will be (typically a fixed fee of, say, £3 or something, plus a percentage of the amount withdrawn).

Next, keep a close eye on your account online.  Wait until you see the transaction appear on your account.

Then, make a payment equivalent to the withdrawal amount, plus fees, plus (for good measure) a couple of quid extra (not strictly necessary, but it doesn't hurt).

That should mean you pay zero or very little interest, depending on the timings.  But it's important to wait until you see the withdrawal appear as a cleared transaction on your account (it can take a day or two to appear) before making the payment.  Otherwise your payment will go towards the existing balance.

Just to confirm outcome in case anyone else has the same question

Contacted the Bank.

They Waived the 3% fee and the cash withdrawal interest for 2 months (didn't ask, but generous). They also confirmed that paying money into the card will stop the highest cost interest, in my case this will be the cash withdrawal. Advised to pay the money after the statement including that payment is generated to ensure it targets that payment.  

Again thanks to all who responded, made it very easy to talk through with the Bank

Ebe_Scrooge

Thanks for reporting bank - it's always nice to hear the outcome of these issues.  And it sounds like a top result for you

With anything like this, it's always worth a suitably polite phone call.  In my experience, credit card companies are almost always very sympathetic and accommodating in cases of a genuine, one-off error, if you've got a long and unblemished track record with them.

surreysaver

Ebe_Scrooge said:

You could try phoning them, as above.

But if they won't change it to a purchase (no reason why they should, to be honest), then here's what to do:

First, check your T&Cs to see what the fees will be (typically a fixed fee of, say, £3 or something, plus a percentage of the amount withdrawn).

Next, keep a close eye on your account online.  Wait until you see the transaction appear on your account.

Then, make a payment equivalent to the withdrawal amount, plus fees, plus (for good measure) a couple of quid extra (not strictly necessary, but it doesn't hurt).

That should mean you pay zero or very little interest, depending on the timings.  But it's important to wait until you see the withdrawal appear as a cleared transaction on your account (it can take a day or two to appear) before making the payment.  Otherwise your payment will go towards the existing balance.

This advice is slightly wrong. You need to wait until a statement is produced with the transaction on. Otherwise, if you pay the money back as soon as it appears on your account, but before it appears on a statement, any payments will go towards whatever appeared on the previous statement

redux

As above, wait for the statement to appear. Then make payment the next or even the same day. Waiting until the normal due date just before the next statement means interest charged for this period.

Well, that's normally anyway. From your later reply it sounds like they're exceptionally waiving interest a bit longer.

cymruchris

They've credited two months interest, as when you have a cash transaction, it starts accruing interest straight away. Even if you settled in full at your statement, there'd be a little what's called 'trailing interest' that would hit the second statement. (Interest on the interest as it were) So they've effectively stopped you being charged in month 2, whereas if they'd just offered one month, you'd have had a small interest charge next month (and to stop confusion, and you ringing up to ask why - they've decided it's better off just crediting it) - a good result though - and hopefully you won't manage that mix up again  

redux

cymruchris said:

They've credited two months interest, as when you have a cash transaction, it starts accruing interest straight away. Even if you settled in full at your statement, there'd be a little what's called 'trailing interest' that would hit the second statement. (Interest on the interest as it were) So they've effectively stopped you being charged in month 2, whereas if they'd just offered one month, you'd have had a small interest charge next month (and to stop confusion, and you ringing up to ask why - they've decided it's better off just crediting it) - a good result though - and hopefully you won't manage that mix up again  

Not necessarily trailing interest. On some accounts, paying the same evening as the statement date, before it's actually appeared online, sees a few pence refunded interest on the next statement