Loss of 0% Interest Rate With Cash Transaction Fee Added?

Twit_Head

Hi,
I have a Nat West credit card on a 0% purchase and repayment basis. Balance varies but try to keep around £1000.
I recently bought a £50 Waitrose/John Lewis gift card online as a thank you for my son/daughter in law using the credit card.
Total gift card charge was £52.75, but I see there is a cash transaction fee of £1.59 added. I  would never withdraw cash on this card but obviously didn't absorb every word of the small print, as I never realised a gift card was regarded as 'cash'  (would have bought the card in store but I am miles from a branch) 
Question - will this be a one off fee of £1.59 or have I upset the 0% deal so the whole of my credit card account will now start attracting interest?
Kind hearted but confused Mum thanking you for any insights you can provide

grumpy_codger

I think it will be the one-off fee plus the interest on £52.75 until you pay this amount off. 

Your next payment has to be either £52.75 + interest or the minimum payment whichever is higher. The payment will be allocated to the part of the balance attracting higher interest, i.e. to the cash advance.

Nasqueron

Cash transactions typically, but not always, incur interest from the moment they hit, you can make a manual payment which should be allocated to the interest bearing debt first which will minimise the amount you pay

MyRealNameToo

Twit_Head said:

Hi,
I have a Nat West credit card on a 0% purchase and repayment basis. Balance varies but try to keep around £1000.
I recently bought a £50 Waitrose/John Lewis gift card online as a thank you for my son/daughter in law using the credit card.
Total gift card charge was £52.75, but I see there is a cash transaction fee of £1.59 added. I  would never withdraw cash on this card but obviously didn't absorb every word of the small print, as I never realised a gift card was regarded as 'cash'  (would have bought the card in store but I am miles from a branch) 
Question - will this be a one off fee of £1.59 or have I upset the 0% deal so the whole of my credit card account will now start attracting interest?
Kind hearted but confused Mum thanking you for any insights you can provide

Certain things are classified as a cash like transaction and are treated as a cash advance and not a purchase hence they come with a fee and interest. 

This won't invalidate the 0% on prior balances but will be incuring interest. You would need to check how NW do their interest calcs and if they give you interest free only if you clear the whole balance or just the balance not on a promotional rate. Either way you will likely to have more interest to pay next month 

Giftcards bought on dedicated websites often come through as a cash like transaction, though it does vary by card issuer. If you buy them at the tills in a store or a more general website they normally won't. 

Twit_Head

Thank you, lovely people! 
I really appreciate your advice on this wonderful forum. That Martin chappie is my hero; has saved me thousands over the years! I was dismayed if my credit card account (pay no interest) was going to go awry because I didn't realise a gift card was regarded as 'cash'  Always try to pay a chunk, so hopefully next month should sort the errant purchase. 
Thank you all again  

callum9999

It seems insane to buy a Waitrose gift card for more than the face value! 

If you want to do it again, at least use a discount site that sells them below face value, like Topcashback. 

fergie_

callum9999 said:

It seems insane to buy a Waitrose gift card for more than the face value! 

If you want to do it again, at least use a discount site that sells them below face value, like Topcashback. 

And pay for it with a debit card.

callum9999

fergie_ said:

callum9999 said:

It seems insane to buy a Waitrose gift card for more than the face value! 

If you want to do it again, at least use a discount site that sells them below face value, like Topcashback. 

And pay for it with a debit card.

I think that specific site doesn't clarify it as a cash transaction (I'm fairly certain I use a credit card there that does usually charge for cash-like transactions), but definitely something to be aware of!

MyRealNameToo

callum9999 said:

fergie_ said:

callum9999 said:

It seems insane to buy a Waitrose gift card for more than the face value! 

If you want to do it again, at least use a discount site that sells them below face value, like Topcashback. 

And pay for it with a debit card.

I think that specific site doesn't clarify it as a cash transaction (I'm fairly certain I use a credit card there that does usually charge for cash-like transactions), but definitely something to be aware of!

Its not the sites choice.

The site's payment services company will give it a MCC which represents what the site does... some providers will have a discussion on the appropriate MCC others will simply allocate one to you without discussion. 

The credit card companies decide which MCCs they consider meet their definition of a cash like transaction or not.