Interest on a credit card (even though paying off using a direct debit )

PRG123 · 29 October at 8:00AM

Hi,
I have a credit card with Halifax. When I originally setup the card a direct debit was setup to pay the amount in full every month.

However recently i have seen an INTEREST amount being taken from my card (although a small amount less than £1) I don't understand why I am having to pay any interest, as my direct debit is controlled by Halifax (taken from a Barclays account).

Any thoughts?

Tescodealqueen · 29 October at 8:10AM

Are any of the transactions classed as cash transactions, purchase of currency for example , might attract interest. Your terms and conditions should explain what is classed as a cash transaction

PRG123 · 29 October at 8:15AM

Nothing that I can see on my statement is cash, currency... Just standard transactions.

When I look at my October statement and September statement seems to be a similar amount of interest.

Tescodealqueen · 29 October at 8:20AM

I would query it then if there has been a mistake you can often get the charges removed and if it was some time ago there might be a knock on effect of trailing interest which is what is appearing on the following statements

born_again · 29 October at 8:22AM

Ring t hem up & ask. Odds on something in August is a cash transaction.

PRG123 · 29 October at 8:32AM

Ok thanks, will reach out to them, there is probably a sensible explanation, but have never seen an interest payment before. Thanks

MyRealNameToo · 29 October at 8:47AM

PRG123 said:

Ok thanks, will reach out to them, there is probably a sensible explanation, but have never seen an interest payment before. Thanks

Most likely there is a transaction that has been deemed as "cash like" which means interest starts incurring immediately. Buying gift cards from a specialist gift card company is often a source, sometimes paying local government charges/fines can be caught up as such too.