Cash advances on credit cards

heroicnich

Hello

Just to add my two penn'orth to the stuff on cash advances on credit cards... it is probably covered somewhere else, but this came as a nasty surprise to me!

For some reason, the credit card companies (Visa in my case) describe buying foreign currency as a cash transfer (rather than as a simple purchase... not sure how they justify that, but there you go, I am taking that up with them!) and as such any purchase of currency is subject to those conditions: i.e., interest charged on that purchase from the point of purchase to the point at which you pay your bill, plus a nice charge of £2 or 2%, whichever is greater. The lesson for me is, from now on, i'll do a straight exchange of crisp english bank notes for whatever holiday currency i want.

All the best to everyone
Nich

Leia_Stephens

When my partner and I went on our big hols in the spring, I ordered my traveller's cheques through Smile and didn't have to worry about cash withdrawal fees adding up .

For anyone who has a Smile current a/c I would recommend buying foreign currency through them .

Leia

johnllew

For some reason, the credit card companies (Visa in my case) describe buying foreign currency as a cash transfer

Makes sense to me - you're still drawing cash, just in a different currency.

Bossyboots

I was told that if I bought currency with my debit card I would be charged by my bank. I still don't understand that as my bank would surely only have seen a post office transaction for £125 and it would be irrelevant to them what it was for.

When I used my debit card to pay for my son's passport it just showed up as a normal transaction and I cannot see how buying currency would be any different.

MarkyMarkD

Because the Post Office (and Travel Agents) have to mark the transaction as a cash purchase transaction under the terms of their agreement with VISA/Mastercard.

I don't see why you think this is unfair, as far as credit cards go - it IS a cash advance, just in a foreign currency.

It might seem more unfair on a debit card transaction, but it costs because you are using the VISA/Mastercard networks.