Cash interest on my statement???

fossman

I signed up to Betfair on 7 April and to verify my identity they took £2 off my credit card (this is seen as a Cash transaction by my credit card company).

On my April statement I got charge £1 cash interest, I paid the statement off on time.

On my May statement I got charged another £1 cash interest, again I paid the statement off on time.

My June statement has just been processed and again there is another £1 cash interest.

I have made no other "cash" withdrawals or payments on my card other than the Betfair £2.

Without cancelling my account how can I stop the £1 keep appearing?

YorkshireBoy

fossman wrote: »

Without cancelling my account how can I stop the £1 keep appearing?

Overpay your next statement by a couple of quid.

fossman

I'll be on the phone to them first thing tomorrow, if I don't get the £2 credited back I'll cancel my card (its the principal of the matter not the amount). I accept the initial £1 cash interest as it was a "cash" transaction but then to charge me another £1 interest and then another £1 interest.

It works out the interest on the initial transaction will be 600% a year!

I've overpaid this months statement by £1 just to cover the £1 I'll get charged again next month.

youknowwho

sorry to say thiis fossman, but there has been no error made by the bank.

you get charged cash interst on a daily basis, so when you came to paying off the first bill, you should have paid of the estimated interest aswell, this then would not have happened. Becuase you just keep paying the balance and not the interest, it then comes on the next statement.

if i were you i woundn't demand to have the interest refunded as they havent done anything wrong. A polite ask might get you your two pound back, but they are not obliged to do so. I would just learn from the experience and next time you take cash out/bet on a CC, that you overpay the bill to clear the int aswell.

YorkshireBoy

youknowwho wrote: »

you get charged cash interst on a daily basis, so when you came to paying off the first bill, you should have paid of the estimated interest aswell, this then would not have happened. Becuase you just keep paying the balance and not the interest, it then comes on the next statement.

There will still be residual interest though. I don't think paying the estimated interest will help. Better to overpay by more than this to be sure.

I would just learn from the experience and next time you take cash out/bet on a CC

This wasn't taking cash out, or making a bet. The £2 payment was taken (and then refunded?) as part of an 'ID/age verification' to prove fossman was of age to be gambling.

jonesMUFCforever

The £1 must be a minimum charge for interest - even though the actual interest will be a couple of pennies if that.

Biggles

As well as paying your credit card interest, you pay Betfair a 1½% charge if you pay by credit card. Best to deposit by debit card.

agsnu

That's bizarre - normally the interest charge is pennies, and normally it's written off. Rounding up to £1 sounds unreasonable. Who's the provider?

YorkshireBoy

agsnu wrote: »

That's bizarre - normally the interest charge is pennies, and normally it's written off. Rounding up to £1 sounds unreasonable. Who's the provider?

It's a growing trend I'm afraid. Halifax and Egg both round up to 50p, but I believe Barclaycard are one of those who round up to £1.

nzseries1

YorkshireBoy wrote: »

It's a growing trend I'm afraid. Halifax and Egg both round up to 50p, but I believe Barclaycard are one of those who round up to £1.

Correct - my Barclaycard rounded interest up to £1, so ultimately I cancelled it last week.

MABLE

fossman wrote: »

I signed up to Betfair on 7 April and to verify my identity they took £2 off my credit card (this is seen as a Cash transaction by my credit card company).

On my April statement I got charge £1 cash interest, I paid the statement off on time.

On my May statement I got charged another £1 cash interest, again I paid the statement off on time.

My June statement has just been processed and again there is another £1 cash interest.

I have made no other "cash" withdrawals or payments on my card other than the Betfair £2.

Without cancelling my account how can I stop the £1 keep appearing?

I had £2.00 debited to my egg money card for verification purposes and egg did not charge interest and did not treat as a cash substitute.