BEWARE First Direct charge for donations to charity

ukwiz

First Direct charge for using your credit card to donate to charity.

The count the donation as a cash advance, and charge a fee of 2.9% (or £3 minimum) and interest. I think this interest payment continues on your outstanding balance until it is cleared.

WillPS

ukwiz said:

First Direct charge for using your credit card to donate to charity.

The count the donation as a cash advance, and charge a fee of 2.9% (or £3 minimum) and interest. I think this interest payment continues on your outstanding balance until it is cleared.

Which charity please? Is there a way you can see (or perhaps ask for) the merchant code used?

Have you checked with First Direct that this is actually their policy?

ukwiz

It is payment through Invest My Community, and yes, it is their policy.

To quote:

Due to the nature of the transaction, donations processed on a Credit Card are classed as cash transactions and therefore attract a cash advance fee. They are classified as a payment which can be easily converted into cash

born_again

They are not a charity...
They are a brand that take funds & pass to a charity.

INVESTMYCOMMUNITY.COM is a trading name of Karadoo Finance Limited (company number 10702553), registered in England, and has its registered office at 19-21 Chapel Street, Marlow, Buckinghamshire, England, SL7 3HN. Karadoo Finance Limited is authorised and regulated by the Financial Conduct Authority (FRN 777371). We are registered with the office of the information commissioner (no. ZB199326) for data protection purposes. We are registered with Fundraising Regulator (Registration number 167998)

ukwiz

yes, it is a way to get a donation to a small charity. I don't see the relevance of your comment - it is still a charity donation

maisie_cat

ukwiz said:

yes, it is a way to get a donation to a small charity. I don't see the relevance of your comment - it is still a charity donation

The credit card payment is not direct to a charity though is it? It to some sort of merchant/finance company/agent so the FD system won't necessarily know that the ultimate beneficiary is a charity.

eskbanker

ukwiz said:

yes, it is a way to get a donation to a small charity. I don't see the relevance of your comment - it is still a charity donation

Can't you donate directly to the charity, rather than through a middleman?

born_again

ukwiz said:

yes, it is a way to get a donation to a small charity. I don't see the relevance of your comment - it is still a charity donation

The relevance is you did not send a payment direct to a charity. It went to a finance co, who passed it on.

So the Catsic code for this will be the company you paid (finance co's are often classed as cash payments) Instead of a direct payment to a charity which not be classed as a cash payment.

So FD have not done anything wrong.

But try ringing FD & explain (nicely) that it was a charity payment via a 3rd party& should not have been classed as cash. They may adjust the cash fee's & refund you. 👍

WillPS

The MCC is what usually determines whether or not a charge is treated as a cash advance. Sometimes these are not neccessarily what one would expect, in such cases I've always found that issuers are willing to waive the fee as a one off but obviously I would not repeat the mistake with the same merchant twice.