mastercard in credit!

M

majee

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generally, if you were to lodge a sum of money to your credit card and use it as you would a banklink card or bankcard, would there be any charges associated with this type of banking?
 
You would have to pay the usual government levy. However there is also the liability factor if your card is lost/stolen and has excess funds lodged in it.

You may be better off with a debit card.
 
levy is already paid. I was thinking more in terms of day-to-day transactioncharges that may be hidden in the T n C's.I know if you withdraw money on your CC and you don't have the funds the charges are criminal but if you are in credit?
 
Withdrawing cash from a credit card is expensive. Other charges remain the same. The important and sensible thing is to clear the card monthly to avoid paying the interest. Setting up a direct debit might be of more help? There isn't any advantage as such to what you're suggesting and remember the excess amount could also be earning interest in another account.
 
I have used both an AIB and Tesco visa in this way and not incurred charges. However, there was no outstanding balance on the card. I've also done it in other countries and no charges that way either.
 
Are you saying that you did not pay any charges or interest on cash advances? That does not tally with the details in the IFSRA CC [broken link removed] which outlines cash advance charges on AIB and Tesco VISA cards and seems to suggest that Tesco (but not AIB) charge interest on advances from the date of the transaction.
 
Is not an advance if the card is in credit. Its only an advance if card goes into debit
 
Sorry - I assumed that purpeller was talking about cash advances above. If it was cash withdrawals from a preloaded account then that's different.
 
It'll depend on the card.

Some cards have a cash fee for withdrawing cash even if the CC is in credit.
 
There will be an ATM withdrawal charge regardless of whether the account is in credit or not.

No credit card issuer will cover a liability greater than the assigned credit limit. Credit cards are not designed to be put into a credit balance in this way, they are for borrowing/debit balances only.
 
thomasd said:
There will be an ATM withdrawal charge regardless of whether the account is in credit or not.

No credit card issuer will cover a liability greater than the assigned credit limit. Credit cards are not designed to be put into a credit balance in this way, they are for borrowing/debit balances only.
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Doesn't all this depend on the terms & conditions of the specific card in question?

Also ... this:
No credit card issuer will cover a liability greater than the assigned credit limit.
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seems to contradict this:
Credit cards are not designed to be put into a credit balance in this way, they are for borrowing/debit balances only.
Click to expand...
 
thomasd said:
No credit card issuer will cover a liability greater than the assigned credit limit. Credit cards are not designed to be put into a credit balance in this way, they are for borrowing/debit balances only.
Click to expand...

This was something that concerned me before I went travelling as I find it very useful to pre-load my cc to withdraw cash abroad. However, there was no mention of them denying liability in the T&C with regard to anything above your established limit.

They actually indicate that no "cash advance fee" will be incurred when withdrawing cash abroad if the final balance is in credit or has a zero balance after the transaction has been processed. This of course isn't possible without going above your limit. Secondly, they give interest on any money above the authorised credit limit. This suggests that it is acknowledged that cards can and will be put into a credit balance.
 
Clubman, I've worked for 3 banks over the years, and it's always been the same - fraud cover etc. only up to the credit limit underwritten.

Issuers can't prevent payments that would put a card into credit, but that doesn't mean that they like or encourage it. Again, not how the product is designed to work.
 
I rang my bank yesterday to ask if there would be any charges if I pre-load my cc card and withdraw the cash while abroad and the gentleman asked me where to and dates of when I was travelling and made a note of it on the system and checked my card details and said that there would be no charges (AIB VISA Goldcard) - I think it depends on what card you have as he had to go and check.

I asked about my laser card in the local branch (to withdraw cash abroad before someone tells me that laser only works in Ireland) and no just the usual 20c charge when within the eurozone.
 
NHG said:
I asked about my laser card in the local branch (to withdraw cash abroad before someone tells me that laser only works in Ireland) and no just the usual 20c charge when within the eurozone.
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It's not Laser that allows you to do this but Cirrus, Maestro or Plus.
 
thomasd said:
Clubman, I've worked for 3 banks over the years, and it's always been the same - fraud cover etc. only up to the credit limit underwritten.

Issuers can't prevent payments that would put a card into credit, but that doesn't mean that they like or encourage it. Again, not how the product is designed to work.
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Surely these are two separate issues. The first (limit on liability) does not preclude the second (having preloaded cash balances "covered")?
 
ClubMan said:
Surely these are two separate issues. The first (limit on liability) does not preclude the second (having preloaded cash balances "covered")?
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Lets take an example. I have a credit limit of €1000. I preload my credit card (for some reason) with an additional €1000, giving me available funds of €2000.

If my card should be stolen or misused up to the limit of available funds, the Bank will reimburse me for the fraud to a maximum of €1000 as long as I haven't been negligent or contributed to it. As for the other €1000 that I chose to load, forget it.
 
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