Gift Card Purchases Using a Credit Card

grumpy_codger

@TadleyBaggie
The gift card company have no idea what your bank will do with the transaction.

They have a very good idea as the bank's actions depend on the MCC provided by the company.

BTW, for what it's worth, my gift cards from Everup, Quidco and Airtime had never been treated as cash by Lloyds CC, although they blocked big (several hundred) amounts (that Barclaycard allowed).

born_again

https://forums.moneysavingexpert.com/discussion/comment/81870802#Comment_81870802

Except the people responding may not have any knowledge of their catsic code. Just pop into any retailer & ask the person you are paying. 😜

flaneurs_lobster

"catsic code"?

There's a Standard Industrial Classification (SIC) code 0279-01 (Cats) for breeding and other services, but probably not what you mean.

born_again

https://forums.moneysavingexpert.com/discussion/comment/81873671#Comment_81873671

We we call them 👍

superM

but gift card shouldn’t a cash transaction. Are these companies doing that to avoid paying the card transaction fees?

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81876249#Comment_81876249

The gift card sellers? Don't think so, they'll have a standard per transaction fee with the processors (like Zettle).

The code they are sending is their MERCHANT CATEGORY code, so a description of their primary business. The banks and other credit card issuing institutions will then take a decision to categorise spending under that code as "cash advance" or not.

In other words, the same CC purchase from the same retailer may be treated as "cash advance" using one card but not using another.

born_again

https://forums.moneysavingexpert.com/discussion/comment/81876249#Comment_81876249

You are buying a card with a cash value ONLY.

Or to put it another way. You are exchanging credit for cash.

WillPS

https://forums.moneysavingexpert.com/discussion/comment/81876735#Comment_81876735

That's a matter of opinion rather than a statement of fact tho, as evidenced by dfiferent issuers treating these MCCs differently.

DarthDaisy

https://forums.moneysavingexpert.com/discussion/6653778/gift-card-purchases-using-a-credit-card

You really do not want to be buying gift cards, especially now.

Previously the cards were a rip off because they had these expiry dates and that was a reason to just never buy them. The bank of England gift cards which come in the form of bank notes are far better as they never expire, can be used in any shop and are easy to carry.

Alternatively there is Bank Transfer.

What is so bad at the moment is that Gift Cards are being targeted by criminals, essentially they are getting cards that have poor security (such as JL), recording the code, peeling off the code and gluing them back. They have been featured on several BBC consumer and money programmes.

At some point we should hope these will be all put behind the counter like cigarettes and tobacco to prevent theft.

There is a second con of those bought online, somehow they are being hacked and people are reporting that they are told the cards have already been redeemed.

So with all these bad experiences why bother, I have been bought gift cards, they end up in a drawer or purse/bag and when I go to redeem them they have expired.

With regard to your query, KEY TERMS such as interest rates and charges should be made prominently to you at the point of purchase BEFORE you press BUY button.

Sounds like a Section 75 claim to me, they might use Chargeback in the first 120 days but make sure you ask for Section 75 claim from the outset so that if they try to weasel their way out you can do an FCA complaint on the grounds of Section 75.

Alternatively, just accept you got stung, it is a few quid and now you know better.

You can leave a 1 star review on Trustpilot for the website and then others will benefit from your warning.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81888618#Comment_81888618

Your points are well made but largely irrelevant to the OP's original post.

They were buying VIRTUAL gift cards online, so no physical card to be tampered with.

You are correct that there have been cases where these virtual cards have been "hacked" and their balances stolen.

The additional charge being discussed is that imposed by the credit card company, not the gift card retailer.

S75 is not applicable where you are purchasing a gift card - the link between the retailer and the eventual purchase having been moved to an intermediary (the gift card provider).