Credit card cash transaction query

euanovsky

I normally pay off my credit card in full every month.

born_again

Cash transactions incur interest from day one, so even if you pay in full there is always trailing interest. 
Example
Make transaction 1st, pay off 25th. You then have 25 days interest. Pay again 25 days later another 25 days interest on the interest.
Most will have a max of 3 months trailing interest.

euanovsky

born_again said:

Cash transactions incur interest from day one, so even if you pay in full there is always trailing interest. 
Example
Make transaction 1st, pay off 25th. You then have 25 days interest. Pay again 25 days later another 25 days interest on the interest.
Most will have a max of 3 months trailing interest.

Thank you - but if on day 25 I pay off the entire balance including any interest, why would there still be interest incurred from day 25 onwards?

Let's say for example I only have one cash transaction of £100 in my balance and this is my own transaction that year. Let's say interest rate is 50%. 10 day interest is then around £1.3. So say for prudence I make a payment of £110 on day 10, would I have not settled my balance in full? Why would interest still be incurred?

molerat

Had this transaction appeared on a statement when you made the payment  ?

Brie

Probably because the payment was applied to something else rather than your cash advance.  And this is when I start arguing with the card company. 

If my balance was paid off the previous month in full then the cash advance is the only thing that could possibly be attracting any interest and therefore according to their T&Cs that's what the next payment should be applied against.  Doesn't matter that it hasn't appeared on the statement yet but MY understanding of their T&Cs is this is the portion of the balance with the highest interest and therefore must be cleared first.  They will argue that's not what it means and I repeat myself (in a highly annoying fashion no doubt) endlessly until they capitulate.  And I don't give in to the "but it's only £6.50" argument because if it's only £6.50 they should be happy to refund it to me.  This usually works but I am exceedingly polite throughout, say that I know the person I'm talking to didn't write the T&Cs that are so obviously unclear if there can be 2 meanings.......please, yes I'd love to talk to your supervisor......etc etc.

euanovsky

molerat said:

Had this transaction appeared on a statement when you made the payment  ?

Yes both the cash transaction and my additional payment have appeared on the statement. 

euanovsky

Brie said:

Probably because the payment was applied to something else rather than your cash advance.  And this is when I start arguing with the card company. 

If my balance was paid off the previous month in full then the cash advance is the only thing that could possibly be attracting any interest and therefore according to their T&Cs that's what the next payment should be applied against.  Doesn't matter that it hasn't appeared on the statement yet but MY understanding of their T&Cs is this is the portion of the balance with the highest interest and therefore must be cleared first.  They will argue that's not what it means and I repeat myself (in a highly annoying fashion no doubt) endlessly until they capitulate.  And I don't give in to the "but it's only £6.50" argument because if it's only £6.50 they should be happy to refund it to me.  This usually works but I am exceedingly polite throughout, say that I know the person I'm talking to didn't write the T&Cs that are so obviously unclear if there can be 2 meanings.......please, yes I'd love to talk to your supervisor......etc etc.

Thanks I think this is what I am going to do.