Interest on a "cash" transaction through PayPal

bobbysox1v

So on the 25th July I paid for a market place item using PayPal f&f.
I used my credit card as this is what I have always done with no issues.

I then put £1000 across to my cc on Payday, well in advance of my statement closing on 9th August.

Every month I pay off my statement balance.

When I checked my statement I had been charged a cash transaction fee and interest. It also gave me a figure for interest for the coming month.

I used the online chat with Halifax to ask why I was being charged interest if I more than covered the f&f payment of £50 and why I was still being charged interest if I had paid off the full balance.

They response was the interest would continue to be charged until I had paid the balance in full.

I asked if that meant also clearing the items put on my card since it closed the previous month (ie which would normally have the 56 days interest free period) and they closed the chat without answering. That was Friday. I continually opened fresh chats since but apparently they are having higher than usual messages so don't reply.

Help ! 

MattMattMattUK

bobbysox1v said:

So on the 25th July I paid for a market place item using PayPal f&f.
I used my credit card as this is what I have always done with no issues.

I then put £1000 across to my cc on Payday, well in advance of my statement closing on 9th August.

Every month I pay off my statement balance.

When I checked my statement I had been charged a cash transaction fee and interest. It also gave me a figure for interest for the coming month.

I used the online chat with Halifax to ask why I was being charged interest if I more than covered the f&f payment of £50 and why I was still being charged interest if I had paid off the full balance.

They response was the interest would continue to be charged until I had paid the balance in full.

You will be charged interest from the day of use on any cash payments until they are cleared, PayPal F&F payments are classed as cash payments. 

You need to check the terms of your card, it depends if they apply payments to payments like that in chronological order, or if they cover highest interest rate first.

Is there an outstanding balance on the credit card?

bobbysox1v said:

I asked if that meant also clearing the items put on my card since it closed the previous month (ie which would normally have the 56 days interest free period) and they closed the chat without answering. That was Friday. I continually opened fresh chats since but apparently they are having higher than usual messages so don't reply.

It is not quite that simple. 
https://www.halifax.co.uk/creditcards/help-guidance/what-is-residual-interest.html

bluelad1927

I noticed recently on PayPal when completing a transaction that a warning came up about f&f being treated as a a cash transaction when using a cc.

It makes complete sense why it is now  this way

born_again

Just a little tip.
Never pay for a item using F&F. There is no protection at all via PP or your CC. 

emperormessia

I noticed a warning from paypal as some credit cards on the list now treats PayPal friend & family payment as cash transaction that why you got the interest charges