Cash transaction fees on gift card purchases.

youngretired

I've been charged a fee by Tesco for purchasing a gift card from Airtimes on Friday 28th (didn't last month).
I've spoken to Tesco and they said as long as I paid the gift card amount and the cash fee amount of today, then the interest will stop as from when the payment is cleared. I specifically asked that I didn't have to pay the balance off and was told NO.
I have a large amount outstanding from the previous June statement which is due to be paid by direct debit on the 8th July. I don't want to be paying 3.99% interest on this.
I've read that payments that are made are allocated to older purchases first, unless there are purchases with a higher interest. So am totally confused to if this means within the statement period or anytime?
Is what the member of staff told me correct or do I need to pay this off today as well?

molerat

I can't see how this will be paid off first as the T&Cs state items that have appeared on a statement will always be paid first.  They also do not prioritise certain types of transaction as some other cards do.

Olinda99

any payment will be allocated to the statement balance first

DullGreyGuy

molerat said:

I can't see how this will be paid off first as the T&Cs state items that have appeared on a statement will always be paid first.  They also do not prioritise certain types of transaction as some other cards do.

They have to prioritise those with the highest interest rates, given the OP has been charged a fee then they are treating it as a cash advance and with some cards cash advances attract a higher interest rate.

Ultimately the OP has spoken to them and they've been advised this so either its correct because of the above or they're making an exception or they've made an error in which case a complaint has a high probability of success