Preloading your Credit Card before going on holidays

Brendan said:

6) Load up your Credit Card before you go abroad and take out cash on it.

There is no cash advance fee.

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Extremely dangerous.

If your card is in pre-loaded and in credit, and you are probably talking about a couple of thousand for a family here, and if that money is fraudently taken from your account, the bank is not liable. You have to suffer the loss of the amount that the card was in credit for yourself. It could turn out to be the most expensive and least enjoyable holiday you have ever had, at least, I cannot imagine how I could possibly enjoy a holiday after finding out that someone had taken 2-3 grand off me.

The interest that you will have to pay for taking out cash advances will pale into insignificance beside the potential loss you are leaving yourself open to.

Re: Holiday Money Tips

Murt10 said:

Extremely dangerous.

If your card is in pre-loaded and in credit, and you are probably talking about a couple of thousand for a family here, and if that money is fraudently taken from your account, the bank is not liable. You have to suffer the loss of the amount that the card was in credit for yourself. It could turn out to be the most expensive and least enjoyable holiday you have ever had, at least, I cannot imagine how I could possibly enjoy a holiday after finding out that someone had taken 2-3 grand off me.


Murt

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i have to agree with this in principle, i like loading my CC when going to the states but i have been warned by bank officals that they are not liable for anything over the credit limit, that is extra money you put on to have it in debit.

Re: Holiday Money Tips

one point i'd like to ask is if i have a CC with a lender and i don't want to preload before i go, is it an option to do on line transfers at 2 day intervals, that why you have the security of not losing the whole preloaded amount if the card is stolen.

Re: Holiday Money Tips

Depends on your bank. My bank (PTSB) take up to 5 working days for a transfer from a Switch Current Account to a PTSB VISA CC account if I recall correctly. It may be possible to speed it up with electronic transfers or something like that. As for transfers every couple of days perhaps you can set up a DD or something?

Re: Holiday Money Tips

I recently moved to bank of ireland and i notice on the banking 365 you can set up payments or transfers in advance so maybe that the way to go for me.

Re: Holiday Money Tips

I like loading my CC when going to the states but i have been warned by bank officals that they are not liable for anything over the credit limit, that is extra money you put on to have it in debit.

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Ron and Murt -- I am aware the banks claim this, but would like to see case law on it.

If after a debit transaction you have a debit balance (you owe the bank money), you've borrowed from the bank, and are protected by the Consumer Credit Act. The situation where after the transaction you still have a credit balance (you've preloaded the card) is greyer as the Consumer Credit Act does not apply. But I'm not convinced the bank can disclaim all responsibility for acting on fradulent instructions, despite T&Cs or what they tell you.

Re: Holiday Money Tips

Ron Burgundy said:

I recently moved to bank of ireland and i notice on the banking 365 you can set up payments or transfers in advance so maybe that the way to go for me.

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That sounds handy. Find out how long the transfer will take though.

Re: Holiday Money Tips

MugsGame said:

If after a debit transaction you have a debit balance (you owe the bank money), you've borrowed from the bank, and are protected by the Consumer Credit Act. The situation where after the transaction you still have a credit balance (you've preloaded the card) is greyer as the Consumer Credit Act does not apply. But I'm not convinced the bank can disclaim all responsibility for acting on fradulent instructions, despite T&Cs or what they tell you.

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Isn't it the case that funds fraudulently taken from a current account (e.g. via Laser skimming) are covered in part or full? Why would a CC account be different?

Re: Holiday Money Tips

A CC would be different (IMHO) as it is not really meant to be used in the manner we are discussing, i.e. kept in credit and used for withdrawing cash.

Re: Holiday Money Tips

Exactly ClubMan! But Ron and Murt's point is a mantra oft repeated by the banks. Not that the banks would have an interest in directing us towards more expensive foreign currency options...

Re: Holiday Money Tips

Can anybody quote their CC terms & conditions in relation to this point for analysis?

Re: Holiday Money Tips

I don't have ts and cs to hand, but I researched this before (for this Key Post):

CCOVICH said:

Using the cash advance facility can be a useful way of accessing money when abroad if you pre-load your card, i.e. lodge money to put your balance in credit. There are no withdrawal fees (none charged by the card provider, however the ATM provider may levy a separate charge), and the foreign exchange rate is generally more competitive than changing cash at a bureau de change. You should be aware that you may be liable for any unauthorised withdrawals/fraud on the card while the account is in credit, so exercise caution if building up a credit balance on your credit card as a means of accessing cash.

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I wonder has anyone ever had a claim refused for a preloaded credit card?

The terms and conditions quoted seem to me to be recommending the practice, but putting in a rider in case of careless use of the card. I would imagine that it would only be invoked if someone put in thousands of euro and had their pin number written on their card.

Brendan

Ulster Bank cc statements specifically ask you not to do load the cc but to ask for an increased limit instead

I can't see anything in the PTSB ICE VISA card terms & conditions (at the end of the [broken link removed]) that obviously limits the bank's liability in the case of cash having been preloaded into the account being used without authorisation. Other than the usual disclaimers where the cardholder doesn't retain his/her PIN securely etc.

Amex blue will not cover you for credit balances.

Marion

Hi Marion

What does that mean? That they won't cover any fraud while it is in credit?

Brendan

Hi Brendan

I rang AMEX now to further explore this and I have, on this occasion, been told that the fact that the credit card is in credit in not relevant in the case of fraud.

The credit balance would be covered for fraud depending on the circumstances.

I also rang BOSi and was informed that if a card were preloaded that it would not be covered for fraud, and they also mentioned that if a card is preloaded it is flagged as suspicious under money laundering acts.

Marion

Marion said:

depending on the circumstances.

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Such as...?

I also rang BOSi and was informed that if a card were preloaded that it would not be covered for fraud

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Unless this can be independently corroborated via the terms & conditions I would not take their word for this.

and they also mentioned that if a card is preloaded it is flagged as suspicious under money laundering acts.

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I find this hard to believe. Surely this would only be the case of c. €13K or more was lodged and the normal money laundering flagging rules applied?

Marion said:

I also rang BOSi ... and they also mentioned that if a card is preloaded it is flagged as suspicious under money laundering acts.

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I too find this hard to believe. The Garda Bureau of Fraud Investigation (who are responsible for processing reports made under anti-money laundering acts) would take a very dim view of any bank routinely flagging small amounts in this way.