28° Mastercard Cash Advances while overseas [No more free cash advances from 1/1/14]

[SeaWolf]

I've been using a combo approach. I have a NAB Gold Debit card as well. I use the NAB card for actual cash withdrawals and 28 Degrees for buying everything I can get on a credit card. I then regularly top up the 28 Degrees card by using BPay. But because I'm just making purchases on that card (not cash withdrawals) I don't have to worry if I go a week or two without being able to top it up. In this way I don't have to worry about the pre-loading business at all and I also get the benefit of having two cards available to me (a Visa and a Mastercard) in case one of them has a problem.

 

[Fantic125]

I have no doubt that most credit card providers monitor unusual activity in both +ve and +ve activities and react accordingly.

I've been called a number of times (and had cards cancelled 3 times due to apparent 'suspicious' activities) - usually when I've had to pay for last minute flights / accommodation / purchases that aren't within my usual activity, or are in countries that I seldom travel to.

I'm sure 28 Degrees are aware of the +ve benefits of loading up their card and using it (in their eyes) inappropriately by keeping in surplus. They would bank (literally) on the number of people who go into credit and they charge accordingly (which is what they are in business for!).

 

[Alanslegal]

My pre-load was $8000 - not an outrageous amount for 65 days away.

......

I asked Mastercard to publicise the potential for card cancellation for pre-load reasons by telling them that forums such as this were advocating the use of the 28 Degrees card.

Firstly I would never pre-load 65 days worth of possible travel expenses onto a card when it is very easy to "top up" the account easily even whilst overseas and travelling around. At a click of a button, you can transfer/deposit into the card anyway. And making it into a quasi-debit card is not what most of the folks here use it for.

What I believe/think people here use it for, and this is the greatest benefit is cash advances whilst overseas. The benefits is that you do not get charged a 1. cash advance fee and 2. currency conversion fee, and IF the account is in positive, then you do not incur any interest! That's the MAIN feature that I use the card for. I never preload my card to pay for accommodation, restaurants, travel related things because I know that I have the up to 55 days interest free period that kicks in anyway.

For example, say my credit limit is $10K and I have deposited an additional $1K ... so now I'm in the positive. I can withdraw up to ~$1k at the daily rate, without fees, or interest. That is plenty for most of my daily activities, however if I use that amount, I'd quickly jump online and top up the account. If I use the card for hotel payments or whatever and I'm now in the negative, then again I quickly jump online and top up the account.

 

[lovetravellingoz]

by telling them that forums such as this were advocating the use of the 28 Degrees card.

It never ceases to amaze me the number of people that try and spoil the golden goose in such ways!!!!!!!!!!!!!!!!!!!!!!!!

The reply was "People know you can't use a credit card like a debit card".

I didn't know that and I don't think others do either.

We very well know.....does not mean that we will not make hay while the sun shines.
Loopholes only exist till they are plugged.

Loopholes are there to be exploited. Forums such as this assist in this. Phone-calls such as yours do the opposite..............

However, we do it more discreetly rather than your "red flag" approach. It only takes a few minutes to set up a series of regular small payments. I would add that doing it this way also keeps your capital either earning interest for you, or saving interest on your mortgage.

 

[Lions]

Hi All


Please don’t shoot the messenger here, nothing to do being quiet and shouting out a secret– below is the way it is from GE Money – issuer of 28 Degrees.


These are extracts from the letter from GE Money replying to my questions about a positive balance credit card cancellation – they are just explaining the way it is, nothing to do with creating situations – it is all in the T&C.


These are quotes:
“..matter reviewed through our internal dispute resolution process”.


“…Conditions of Use Booklet …. Part B, Section 2, specifically 2.1 which states “A card can be used to obtain credit from us””.



“..does not outline the terms in which a card can be placed into credit as this is not a facility GE offers …”
“GE Money does not recommend that you place your account into credit.”



“Please note if a card is placed into credit, we reserve the right to suspend and/or cancel a card at our discretion in accordance with Part F, Section 27 of the Conditions of Use (“COU”) booklet.”



“While we trust that this resolves this issue, the option to refer the matter to the Financial Ombudsman Service (“FOS”) is available”.



“Signed by …..”
“Customer Resolution Team”



My point is, be aware the card can be cancelled if it is in credit, pre-loaded, for any amount at any time.


I was not aware of this cancellation scenario and I am sounding a warning – I don’t think any of us want to discover our credit card has been cancelled, without notice, when we know the card is in credit and we are in some difficult place overseas without secure ways to recharge the card.


Maybe GE Money could soften their stance and allow what we all think could be a reasonable leeway – I only found out all this by accident.


Cheers Lions

 

[Mr_Gimlet]

Maybe GE Money could soften their stance and allow what we all think could be a reasonable leeway – I only found out all this by accident.

I think other posters' points is that by making GE address the preloading issue in writing, and escalating it though customer relations, you have formally highlighted a loophole that everyone knows about. This loophole is explicitly addressed in the T&Cs of the card and, indeed, is flagged when you apply now - 'this card is not a debit card'.

The coughulative effect of people ringing up and making GE take a formal position is that GE will increasingly be inclined to take the easiest step of closing the loophole.

And there will be no softening or leeway. GE cannot afford to get themselves into a position where they are seen by the Ombudsman of providing a service that isn't a credit card.

 

[kpc]

Maybe GE Money could soften their stance and allow what we all think could be a reasonable leeway – I only found out all this by accident.

I think other posters' points is that by making GE address the preloading issue in writing, and escalating it though customer relations, you have formally highlighted a loophole that everyone knows about. This loophole is explicitly addressed in the T&Cs of the card and, indeed, is flagged when you apply now - 'this card is not a debit card'.

The coughulative effect of people ringing up and making GE take a formal position is that GE will increasingly be inclined to take the easiest step of closing the loophole.

And there will be no softening or leeway. GE cannot afford to get themselves into a position where they are seen by the Ombudsman of providing a service that isn't a credit card.

Nicely summed up!!

 

[travelislife]

Just wanted to mention quickly that their communication is terrible. I had a change of address and forgot to update my address for my 28degreescard and thus a statement they sent out got "returned to sender", upon receiving this they cancelled my card. Luckily I had got back to Australia 2 days before they did this and it wasn't till I went to buy some fuel and the card was declined, I said to the attendant there is no reason for it to be declined I used it yesterday! When I called up 28degrees they mentioned it was cancelled, I asked why and they mentioned the address. I asked them if they had my mobile number on file, my email address, they answered yes to both, I asked why didn't you contact me first before cancelling? Basically the answer was, that is too much hassle, we will cancel first and then let the customer contact us, terrible customer service. Glad I wasn't overseas at the time.

 

[kpc]

Everything about this card is terrible. Poor customer service, blocked transactions despite you telling them you are going OS, hard to get credit limit increase, no points etc etc BUT no Fx fees makes it all worthwhile.....must have back up card OS tho. at all times in case of problems!

 

[Cynicor]

I've only had a few interactions with the customer service team and everything has been fine. Also had no issues with obtaining credit limit increases, just click a button online and it's done. That was last month, not sure it has recently changed.

As KPC says, regardless, the excellent echange rates make the card worthwhile, for cash and credit. I know GE are pretty poor with their customer service so I hope my cards just keep going without any issues.

 

[MEL_Traveller]

I too have had nothing but good responses from the customer care team. I travel most of the year and they update all my countries and dates without any hesitation.

as I have said before, why on earth would anyone preload? the interest you make in the bank is far more than a days interest at 20%. 8000 in the bank would earn $92 interest for 65 days... compared with maybe $10 in billed finance charges? if you are not interested in the savings then why bother at all with a wizard card?

 

[Alanslegal]

Regarding service, I have only spoken to 28 Degrees (formerly Wizard Clear) since owning this card from mid 2005. I recall in that year taking the newly acquired card overseas for it's maiden trip. I made a transaction and they called to confirm the transaction was a legitimate one [yes even budget credit cards have someone making sure transactions are geniune]. Ever since then I have advised them to leave the card "open" to worldwide transactions because I would be travelling frequently and also purchasing in non-AUD currencies, and ever since then it's been all great going.

In relation to the positive balance, I have had the account in positive territory many times but I do not to keep it in the positive unnecessarily and often for very short periods of time ie. always less than two weeks. This has worked well, and I hope I have been flying under their radar regarding positive balances.

 

[Pushka]

$8000 was a rather large sum to pre load all at once. I think you would have been fine if you had added $1000 each week.

 

[DeKa]

I've been using a combo approach. I have a NAB Gold Debit card as well. I use the NAB card for actual cash withdrawals and 28 Degrees for buying everything I can get on a credit card. I then regularly top up the 28 Degrees card by using BPay.

Exactly what I do (but with an ING Direct Orange Everyday account which has only a $2.50 ATM fee and almost-live exchange rates like 28 Degrees)

 

[PLANT]

[h=2]"Re: 28° [Wizard] Mastercard Cash Advances while overseas[/h]

HAS SOMETHING CHANGED?
I purchased an item at $24268.00HK which on Xe should be 3,018.76 AUD
But my card has been debited $3053AU?
Thats $34 conversion?
What the?"

The outcome is I was charged:​

$3,040.53 on 19th Oct 2011

Last Purchase(s)

So what % is that?

Regards

 

[Cynicor]

ACTUAL BANK FEES for this purchase: -10.93 AUD ( -0.358% )

You got a better rate than the rate of the day, which can only happen with this card (or the NAB I presume)

 

[PLANT]

Alright its time to give the card a workout OS myself.
5k current limit.
Has $3100 on used.

So can I just pay 5K to pay off and therefore setup cash advance card 2K via BPAY?

Off to USA...ATM all the way?
Fees from USA ATM any to avoid?

Looking at getting off the plane LAX and ATM some cash there until I workout local ATMS.

Regards

 

[cove]

Yes stay below your credit limit times two,so what you are thinking will work.
ATM charge varies with US Bank it is $3 for $500 I think.

 

[serfty]

Yes stay below your credit limit times two,so what you are thinking will work.
ATM charge varies with US Bank it is $3 for $500 I think.

In my experince, ATM charges do vary (I have seen from $0 to $2.5) but are flat rate per withdrawal. You be advised of the charge before you agree to proceed.

 

[Baysider]

With people loading the card way too far into credit ($8000 !!!) and then arguing the toss with GE Money, its only a matter of time until we all lose this opportunity to make interest-free and forex-free cash withdrawals. About time we shut down this thread and kept this to ourselves.