Klarna use incurs a cash advance fee

[Dr Strangelove]

I made a few purchases with Klarna recently to take advantage of interest free credit on interest free credit

However my card provider has charged me a €2.50 cash advance fee for each transaction which makes it completely not worth it.

Has anyone else had this experience?

 

[kickstart]

Ouch! That's not nice at all, and would have caught me unawares too. I think if you use your debit card you can avoid this treatment.

 

[Sarah Ryan]

I bought Progidy tickets via Klarna from a PTSB bank account on Wednesday and no extra charge came out of the bank account.

 

[ClubMan]

I bought Progidy tickets via Klarna from a PTSB bank account on Wednesday and no extra charge came out of the bank account.

I presume that this refers to a credit card purchase which was treated as a cash advance and thus incurred the CC cash advance fees? A debit card or current account payment wouldn't involve a cash advance because the money is there or not. (Unless it isn't and triggers overdraft fees).

I made a few purchases with Klarna recently to take advantage of interest free credit on interest free credit

However my card provider has charged me a €2.50 cash advance fee for each transaction which makes it completely not worth it.

 

[Velleity]

I just got charged this as well. I had no idea credit cards (or at least my credit card) counted Klarna as a cash advance. When I phoned up my credit card they say anything that is used for a third party to pay for things counts as a cash advance, so things like Revolut would as well. I get with Revolut but with Klarna you are paying for a particular thing, not getting cash to use as you like.

 

[arbitron]

so things like Revolut would as well. I get with Revolut

I recently had to top up my Revolut with an AIB credit card and a Bank of Ireland credit card. Neither of them charged a cash advance.

 

[Dr Strangelove]

I recently had to top up my Revolut with an AIB credit card and a Bank of Ireland credit card. Neither of them charged a cash advance

I tried this with an Avant credit card and was charged €2.50.

 

[Brendan Burgess]

I recently had to top up my Revolut with an AIB credit card and a Bank of Ireland credit card.

Had you a credit balance on your credit card by any chance?

Otherwise you could exploit this to get a free loan.

 

[losttheplot]

I've often used Google pay, linked to a Visa credit card to top up Revolut, without any fee. It stopped working for a while. It's only been for small amounts. It does seem to bypass the cash advance fee. I'd worry overuse would attract attention and Revolut could freeze the account or something.