Using credit card at atm overseas

carmex123

I understand that if I use my credit card overseas at an atm, interest is payable immediately on the amount. How can I pay off that amount immediately. I mean if my cc bill is 2,000 and I take 100 cash at an ATM, how do I pay off the 100, but not the 2000? 🤷

Isthisforreal99

I don't believe you can as payments will always be allocated to statemented balances first.

Unless you have a zero balance on tbe card, it's not a particularly wise thing to do.

katejo

carmex123 said:

I understand that if I use my credit card overseas at an atm, interest is payable immediately on the amount. How can I pay off that amount immediately. I mean if my cc bill is 2,000 and I take 100 cash at an ATM, how do I pay off the 100, but not the 2000? 🤷

I agree that it won't work. If you have the £100 available in your account, why not just use a debit card at the ATM? I never use a CC to withdraw cash because of the immediate interest charges. 

p00hsticks

FYI it's not just overseas - using a CC to withdraw cash, in the UK or abroad,  at any ATM is classed as a cash advance and will start to incur interest immediately.  

flaneurs_lobster

p00hsticks said:

FYI it's not just overseas - using a CC to withdraw cash, in the UK or abroad,  at any ATM is classed as a cash advance and will start to incur interest immediately.  

True, although there are a few "travel" credit cards that do allow overseas ATM withdrawals to be treated as "purchases".

Isthisforreal99

flaneurs_lobster said:

p00hsticks said:

FYI it's not just overseas - using a CC to withdraw cash, in the UK or abroad,  at any ATM is classed as a cash advance and will start to incur interest immediately.  

True, although there are a few "travel" credit cards that do allow overseas ATM withdrawals to be treated as "purchases" (Halifax Clarity is one such).

Are you sure about Halifax Clarity?

From their site ""Interest charges will apply from the day you make a cash withdrawal"

flaneurs_lobster

Isthisforreal99 said:

flaneurs_lobster said:

p00hsticks said:

FYI it's not just overseas - using a CC to withdraw cash, in the UK or abroad,  at any ATM is classed as a cash advance and will start to incur interest immediately.  

True, although there are a few "travel" credit cards that do allow overseas ATM withdrawals to be treated as "purchases" (Halifax Clarity is one such).

Are you sure about Halifax Clarity?

From their site ""Interest charges will apply from the day you make a cash withdrawal"

Apologies you're right, read wrong column, meant Barclaycard Reward Visa - I'll correct.

Brie

What I've done in the past is to arrange in advance a payment to my card the day on or just after I plan to take money out of the ATM.  By law the cards must allocate any payment to whatever will attract the highest interest and cash withdrawals normally trump outstanding balances or recent purchases.  

Normally it works best if you go with a zero balance and don't make any purchases before taking the money out of the ATM.  If however there is a balance on the card from the previous month you need to check how they handle the direct debit that you've likely set up.  My M&S card always takes the DD they say the will take (set to full balance) but my Santander card takes any payments made off the DD even though it's set to clear the statement balance in full.  

eskbanker

Brie said:

What I've done in the past is to arrange in advance a payment to my card the day on or just after I plan to take money out of the ATM.  By law the cards must allocate any payment to whatever will attract the highest interest and cash withdrawals normally trump outstanding balances or recent purchases.  

Normally it works best if you go with a zero balance and don't make any purchases before taking the money out of the ATM.  If however there is a balance on the card from the previous month you need to check how they handle the direct debit that you've likely set up.  My M&S card always takes the DD they say the will take (set to full balance) but my Santander card takes any payments made off the DD even though it's set to clear the statement balance in full.  

As mentioned earlier, repayments will go to statemented balances, so if you already have a balance then it's not just DDs that'll be affected, but the repayment itself will go to the existing balance unless you leave enough time - in the existing balance scenario, scheduling a repayment for the same day as the cash withdrawal runs the risk of hitting timing issues and being allocated to the 'wrong' balance....

NoodleDoodleMan

flaneurs_lobster said:

Isthisforreal99 said:

flaneurs_lobster said:

p00hsticks said:

FYI it's not just overseas - using a CC to withdraw cash, in the UK or abroad,  at any ATM is classed as a cash advance and will start to incur interest immediately.  

True, although there are a few "travel" credit cards that do allow overseas ATM withdrawals to be treated as "purchases" (Halifax Clarity is one such).

Are you sure about Halifax Clarity?

From their site ""Interest charges will apply from the day you make a cash withdrawal"

Apologies you're right, read wrong column, meant Barclaycard Reward Visa - I'll correct.

Please correct me if wrong - if you withdraw cash from an ATM with the Barclaycard Reward - there is no immediate interest to add - and it is not applied thereafter as long as the total balance on the card is settled by the next monthly statement payment date.

So this card would not suit the OP's needs to only have to pay off cash withdrawal amount.

flaneurs_lobster

NoodleDoodleMan said:

flaneurs_lobster said:

Isthisforreal99 said:

flaneurs_lobster said:

p00hsticks said:

FYI it's not just overseas - using a CC to withdraw cash, in the UK or abroad,  at any ATM is classed as a cash advance and will start to incur interest immediately.  

True, although there are a few "travel" credit cards that do allow overseas ATM withdrawals to be treated as "purchases" (Halifax Clarity is one such).

Are you sure about Halifax Clarity?

From their site ""Interest charges will apply from the day you make a cash withdrawal"

Apologies you're right, read wrong column, meant Barclaycard Reward Visa - I'll correct.

Please correct me if wrong - if you withdraw cash from an ATM with the Barclaycard Reward - there is no immediate interest to add - and it is not applied thereafter as long as the total balance on the card is settled by the next monthly statement payment date.

So this card would not suit the OP's needs to only have to pay off cash withdrawal amount.

As I understand it, the overseas ATM withdrawal is treated as if it were any other "purchase" and the balance on the card would reflect this, so there is no imperative to settle this amount since it forms part of the same "normal" balance with the same terms.

So no, you can't just pay off a specific chunk of the card balance relating to a specific transaction but why would you want to?

Have to say though, that trying to verify this by trawling through the various Barclaycard variant  terms/conditions/summaries has been less than conclusive.