Why do banks with opening offers (and regularly) like you to use the debit card

DullGreyGuy

WillPS said:

Natwest Group also don't allow payment of credit cards by debit card.

Since when? I always used to pay off my RBS credit card with debit card, and amusingly for about 18 months Barclays would then flag the transaction as suspicious each time. Was a few years ago though.

Certainly there are many that cap the number of payments you can make towards the card by debit card. We've had people here before that were trying to pay their daily shopping off their credit card each day and finding after the 5th or so transaction they're refused. 

lr1277

ZeroSum said:

lr1277 said:

ZeroSum said:

born_again said:

nic_c said:

Use credit card as normal, pay off credit card in 1/20th increments using debit card. 

Except not all credit cards allow debit card payments.

Which ones don't & how do you pay them off if you only have min payment set as a DD? 
I've never known one that doesn't allow debit cars payments

If memory serves based on posts on ths forum, HSBC don't allow debit card payments for their credit cards. Also I don't think FD allow debit card payments.Interestingly enough, the old John Lewis card which was run by HSBC did allow debit card payments.

And if your DD is only set to pay the minimum, then you will have to make a Faster Payment or a BACS transfer to pay the remainder.

I'm guessing it'll be the ones that are linked to a current account. M&S which is part of the HSBC group does allow card payments but no longer has a current account.
 and
Have just had a look at my FD card, and once again the bank with the supposed great service you can't just transfer money between your own accounts like other banks, its this weird convoluted method of paying FD themselves & using your card number a reference. It's not obvious how to do it, you need to watch a tutorial. They're absolutely stuck in the 1990's with so many of their processes & ML keeps promoting their great service 

I too have an FD card and a few months ago, I wanted to make an additional payment.

In my mnd, the instructions were like setting up another payee with the reference being my credit card number.

Now that this payee is setup, it will be available for 1 year (possibly more).

Easy peasy.

Or my expectations are lower than other peoples'.

WillPS

DullGreyGuy said:

WillPS said:

Natwest Group also don't allow payment of credit cards by debit card.

Since when? I always used to pay off my RBS credit card with debit card, and amusingly for about 18 months Barclays would then flag the transaction as suspicious each time. Was a few years ago though.

Certainly there are many that cap the number of payments you can make towards the card by debit card. We've had people here before that were trying to pay their daily shopping off their credit card each day and finding after the 5th or so transaction they're refused. 

I want to say 2018/19? Whenever they closed down their (awful) Credit Card servicing platform and fully merged it in to online banking.

The interchange fee cap will have been a motivator on this, as a credit card settled in full by debit card eats at least 66% of the revenue captured (probably more like 150% once you factor the other fees associated with taking a debit card payment and deduct the chunk Mastercard keep for themselves on the credit card).

antuk

phillw said:

I got a letter from my credit card provider telling me about irregular activity when I was putting through £1 transactions.

Which provider?

PixelPound

WillPS said:

nic_c said:

Use credit card as normal, pay off credit card in 1/20th increments using debit card. 

This approach is highly likely to draw unwanted attention from your credit card issuer - I'm sure I've read that Capital One have taken a dim view of this in the past.

I do £500 chunks which I think is reasonable.

Depends how much you are spending and how often you are crediting? Surely it's more if you do multiple ones in a day - some people seem to want to get all 20 over and done in a day.

ZeroSum

lr1277 said:

ZeroSum said:

lr1277 said:

ZeroSum said:

born_again said:

nic_c said:

Use credit card as normal, pay off credit card in 1/20th increments using debit card. 

Except not all credit cards allow debit card payments.

Which ones don't & how do you pay them off if you only have min payment set as a DD? 
I've never known one that doesn't allow debit cars payments

If memory serves based on posts on ths forum, HSBC don't allow debit card payments for their credit cards. Also I don't think FD allow debit card payments.Interestingly enough, the old John Lewis card which was run by HSBC did allow debit card payments.

And if your DD is only set to pay the minimum, then you will have to make a Faster Payment or a BACS transfer to pay the remainder.

I'm guessing it'll be the ones that are linked to a current account. M&S which is part of the HSBC group does allow card payments but no longer has a current account.
 and
Have just had a look at my FD card, and once again the bank with the supposed great service you can't just transfer money between your own accounts like other banks, its this weird convoluted method of paying FD themselves & using your card number a reference. It's not obvious how to do it, you need to watch a tutorial. They're absolutely stuck in the 1990's with so many of their processes & ML keeps promoting their great service 

I too have an FD card and a few months ago, I wanted to make an additional payment.

In my mnd, the instructions were like setting up another payee with the reference being my credit card number.

Now that this payee is setup, it will be available for 1 year (possibly more).

Easy peasy.

Or my expectations are lower than other peoples'.

They are, but you shouldn't need to do that when you've got the current account. You should just be able to do a transfer between your own accounts. It's an extra couple of steps that you have to go out of your way to find out how to do it. It's once again shoddy service from the bank that thinks it offers great service.

GeoffTF

ZeroSum said:

lr1277 said:

ZeroSum said:

lr1277 said:

ZeroSum said:

born_again said:

nic_c said:

Use credit card as normal, pay off credit card in 1/20th increments using debit card. 

Except not all credit cards allow debit card payments.

Which ones don't & how do you pay them off if you only have min payment set as a DD? 
I've never known one that doesn't allow debit cars payments

If memory serves based on posts on ths forum, HSBC don't allow debit card payments for their credit cards. Also I don't think FD allow debit card payments.Interestingly enough, the old John Lewis card which was run by HSBC did allow debit card payments.

And if your DD is only set to pay the minimum, then you will have to make a Faster Payment or a BACS transfer to pay the remainder.

I'm guessing it'll be the ones that are linked to a current account. M&S which is part of the HSBC group does allow card payments but no longer has a current account.
 and
Have just had a look at my FD card, and once again the bank with the supposed great service you can't just transfer money between your own accounts like other banks, its this weird convoluted method of paying FD themselves & using your card number a reference. It's not obvious how to do it, you need to watch a tutorial. They're absolutely stuck in the 1990's with so many of their processes & ML keeps promoting their great service 

I too have an FD card and a few months ago, I wanted to make an additional payment.

In my mnd, the instructions were like setting up another payee with the reference being my credit card number.

Now that this payee is setup, it will be available for 1 year (possibly more).

Easy peasy.

Or my expectations are lower than other peoples'.

They are, but you shouldn't need to do that when you've got the current account. You should just be able to do a transfer between your own accounts. It's an extra couple of steps that you have to go out of your way to find out how to do it. It's once again shoddy service from the bank that thinks it offers great service.

It is their customers that think FD offers great service.

WillPS

GeoffTF said:

ZeroSum said:

lr1277 said:

ZeroSum said:

lr1277 said:

ZeroSum said:

born_again said:

nic_c said:

Use credit card as normal, pay off credit card in 1/20th increments using debit card. 

Except not all credit cards allow debit card payments.

Which ones don't & how do you pay them off if you only have min payment set as a DD? 
I've never known one that doesn't allow debit cars payments

If memory serves based on posts on ths forum, HSBC don't allow debit card payments for their credit cards. Also I don't think FD allow debit card payments.Interestingly enough, the old John Lewis card which was run by HSBC did allow debit card payments.

And if your DD is only set to pay the minimum, then you will have to make a Faster Payment or a BACS transfer to pay the remainder.

I'm guessing it'll be the ones that are linked to a current account. M&S which is part of the HSBC group does allow card payments but no longer has a current account.
 and
Have just had a look at my FD card, and once again the bank with the supposed great service you can't just transfer money between your own accounts like other banks, its this weird convoluted method of paying FD themselves & using your card number a reference. It's not obvious how to do it, you need to watch a tutorial. They're absolutely stuck in the 1990's with so many of their processes & ML keeps promoting their great service 

I too have an FD card and a few months ago, I wanted to make an additional payment.

In my mnd, the instructions were like setting up another payee with the reference being my credit card number.

Now that this payee is setup, it will be available for 1 year (possibly more).

Easy peasy.

Or my expectations are lower than other peoples'.

They are, but you shouldn't need to do that when you've got the current account. You should just be able to do a transfer between your own accounts. It's an extra couple of steps that you have to go out of your way to find out how to do it. It's once again shoddy service from the bank that thinks it offers great service.

It is their customers that think FD offers great service.

Some do, but that's irrelevant. First Direct historically sold themselves on being a bank with better service, although their website was changed to remove all reference to this when they suddenly found themselves offering very poor service during the pandemic.

WillPS

nic_c said:

WillPS said:

nic_c said:

Use credit card as normal, pay off credit card in 1/20th increments using debit card. 

This approach is highly likely to draw unwanted attention from your credit card issuer - I'm sure I've read that Capital One have taken a dim view of this in the past.

I do £500 chunks which I think is reasonable.

Depends how much you are spending and how often you are crediting? Surely it's more if you do multiple ones in a day - some people seem to want to get all 20 over and done in a day.

Not sure why that makes any difference to the bank. A debit card transaction has the same cost regardless of how many you do at once. The amount of transactions you do in total might well make a difference, as acquiring banks typically charge a 'per transaction' flat fee as well as or instead of the % of transaction.

ZeroSum

GeoffTF said:

ZeroSum said:

lr1277 said:

ZeroSum said:

lr1277 said:

ZeroSum said:

born_again said:

nic_c said:

Use credit card as normal, pay off credit card in 1/20th increments using debit card. 

Except not all credit cards allow debit card payments.

Which ones don't & how do you pay them off if you only have min payment set as a DD? 
I've never known one that doesn't allow debit cars payments

If memory serves based on posts on ths forum, HSBC don't allow debit card payments for their credit cards. Also I don't think FD allow debit card payments.Interestingly enough, the old John Lewis card which was run by HSBC did allow debit card payments.

And if your DD is only set to pay the minimum, then you will have to make a Faster Payment or a BACS transfer to pay the remainder.

I'm guessing it'll be the ones that are linked to a current account. M&S which is part of the HSBC group does allow card payments but no longer has a current account.
 and
Have just had a look at my FD card, and once again the bank with the supposed great service you can't just transfer money between your own accounts like other banks, its this weird convoluted method of paying FD themselves & using your card number a reference. It's not obvious how to do it, you need to watch a tutorial. They're absolutely stuck in the 1990's with so many of their processes & ML keeps promoting their great service 

I too have an FD card and a few months ago, I wanted to make an additional payment.

In my mnd, the instructions were like setting up another payee with the reference being my credit card number.

Now that this payee is setup, it will be available for 1 year (possibly more).

Easy peasy.

Or my expectations are lower than other peoples'.

They are, but you shouldn't need to do that when you've got the current account. You should just be able to do a transfer between your own accounts. It's an extra couple of steps that you have to go out of your way to find out how to do it. It's once again shoddy service from the bank that thinks it offers great service.

It is their customers that think FD offers great service.

Think it's some kind of cultish Stockholm syndrome. Apple users are exactly the same