Cash on credit card by mistake

aroominyork

Yes, I've put a few thousand on the card since last statement. I think you are right and she/Nationwide are wrong about order paymetns are allocated. I'll be doing it the way you suggest.

molerat

I have removed my post since reading the T&Cs more closely.

The problem could be if purchases and cash withdrawals are at the same rate, which it seems they could be, it may not distinguish so the operator could be correct. There is nowhere in the T&Cs that specify transaction types for payment allocation, just interest rates.

We allocate payments to balances which show on your current statement in a high to low interest rate order, then, to balances in a high to low interest rate order which do not yet appear on your statement. For further details, please refer to your credit card terms and conditions.

So possibly the only way would be to pay off the statement balance plus everything before the cash withdrawal as well as the withdrawal amount, that may work as it should pay them off in date order.

aroominyork

molerat said:

I have removed my post since reading the T&Cs more closely.

The problem could be if purchases and cash withdrawals are at the same rate it may not distinguish so the operator could be correct. There is nowhere in the T&Cs that specify transaction types for payment allocation, just interest rates.

We allocate payments to balances which show on your current statement in a high to low interest rate order, then, to balances in a high to low interest rate order which do not yet appear on your statement. For further details, please refer to your credit card terms and conditions.

So possibly the only way would be to pay off the statement balance plus everything before the cash withdrawal as well as the withdrawal amount.

It would cost me more than the interest I'll be charged to clear my balance a month early, so I'll pay off the statement and cash and see what happens. You live and learn!

Their website says:

Interest for cash advances

Whenever you use your card to get cash (for example, from a cash machine) you will pay the standard rate for cash advances.

The standard rate for cash advances is currently the same as your standard rate for purchases.

We work out interest on the average daily balance of cash advance transactions during each month, which is then charged to your account on your statement date.

Interest is charged on cash advance transactions from the day they are made, even if you pay your balance in full on your payment due date.

You can check your cash advance interest rate in the “Interest Summary Table” in your statement.

Please note that fees may apply to cash advances.

grumbler

aroominyork said:

She said the system does not allocate payments to cash withdrawals first. I think she's wrong. 

Why?! This is the most logical way for the system to work.

My apologies, I misread that post.

molerat

grumbler said:

aroominyork said:

She said the system does not allocate payments to cash withdrawals first. I think she's wrong. 

Why?! This is the most logical way for the system to work.

Some (most ?) cards allocate according to interest rate then transaction type if interest rates are the same so I believe NW are pretty unusual in that respect.

MBNA for instance

If there is more than one type of balance at the same interest rate, they are normally paid off in the following order: cash
transactions, purchases, balance transfers and money transfers,

Which would pay off the cash withdrawal ahead of the purchases.

grumbler

I think this applies to transactions in the last statement in the first place, then to the recent transactions if the statement balance was zero or paid in full. A DD is a payment. If it's a payment in full it's always allocated to the last statement balance, not to recent cash transactions.

molerat

grumbler said:

I think this applies to transactions in the last statement in the first place, then to the recent transactions if the statement balance was zero or paid in full. A DD is a payment. If it's a payment in full it's always allocated to the last statement balance, not to recent cash transactions.

But that is not what this is about.  OP is aware that the statement balance needs to be paid off first, it is how the subsequent transactions are dealt with that is in question.

grumbler

My apologies, I misread the OP's last post - "I have to pay off my entire current balance ... rather than just my current statement balance". 
I agree that this is wrong/incorrect.

molerat

grumbler said:

My apologies, I misread the OP's last post - "I have to pay off my entire current balance ... rather than just my current statement balance". 
I agree that this is wrong/incorrect.

But the way the T&Cs are worded means the advisor is most likely correct as there is no mention of transaction types only interest rates unlike many cards where transaction type is taken into consideration when interest rates are the same.

NoodleDoodleMan

I may be wrong, never having been in a scenario with a cash advance to consider - however after reading more experienced punters hereabouts I was lead to believe that funds paid in to a credit card account went to pay off the earliest dated amounts due first ?