Capital One Cash Withdrawal Catch 22

sludge94

I'm sure this must be old hat - but perhaps my silly mistake might be a warning to those who are tempted to use their Capital One card for a one-off cash withdrawal.

At the end of February, I mistakenly used my Cap One card to withdraw £30. I realised straight away that I hadn't used my debit card (they look quite similar), and when I got home I immediately transferred over £35 to my Cap One card, hoping to reduce the interest that I knew would be accruing.

On my next statement there was 18p interest, a bit annoying when I've never paid any before, but I thought that would be the last of it. I paid off the entire balance by the due date, as always.

Today the next statement came and there's another 31p cash fee. On reading the small print and talking to their call centre (not the Nottingham one I am pretty certain), it appears that the cash element of any balance is the last to be paid off. I sort of knew this already (I used to work for them, so know first hand they are pretty sharp), but what I didn't realise is that when you pay off your entire balance, they pay off purchases that you have made since the last statement was prepared, ahead of any cash. despite paying off the balance I was told I still had £18 of the cash to pay back!! Next months cash fee would no doubt have been higher, and continue to grow.

In short if I had continued to pay off the entire balance on every statement I would have continued to be charged a cash fee indefinitely, just from the one £30 withdrawal.

It appears the only way I can put a stop to this perpetual cash fee situation is pay off the entire balance now to a zero balance, making sure I don't use the card again in the meantime. I am sure I'm not the only person to pay off the full balance every month, but I rarely have a zero balance, as I use the card for all purchases every couple of days or so.

Having worked for these crooks myself some years back I shouldn't be surprised but I must admit I am. We didn't use to call them Capone (after the gangster) for nothing!!

Bokkens

You have highlighted a continuing problem that is aired here every few days,just for others reading,
You need to check the "allocation of payments" on your T&C's and never use a credit card for multiple perpose like BT's and then purchase or cash withdrawls as thi will attract high interest to your account.
The only way out is to pay off the balance in full and pay the account on time for two months to make sur you don't get any interest.
At the end of the day this is how credit card companies make their money when people a/ make mistakes,b/ don't pay the balance off in full each month.

MarkLS12

I use one PIN for Credit Cards and another for Debit Cards.

This has saved me a couple of times when I accidentally put the wrong card in a Cash machine.

YorkshireBoy

Some other options...

1. Debit cards at one side of wallet/purse...credit cards at the other.

2. Hide your credit cards behind your debit cards in your wallet/purse.