Charged a cash advance fee for a gift card purchase

[Rich]

I think the issue with many of the "cash advance" treatments up-thread is the use of PayPal as the middle-man, and what matters is how PayPal present the purchase to the card provider

Maybe, but the impression I get is it seems to be specifically related to CBA. I never had this issue with PayPal and Amex. Of course I won't be trying CBA direct to confirm.

 

[AUElwood]

Regarding the interest rate of the cash advance, anyone knows how it is calculated? I have a cash advance fee of $4.56 and 27 days later I received the interest rate (fee and charge) of $2.47, which seems a bit too much?

 

[oz_mark]

Regarding the interest rate of the cash advance, anyone knows how it is calculated? I have a cash advance fee of $4.56 and 27 days later I received the interest rate (fee and charge) of $2.47, which seems a bit too much?

If is is a 3% cash advance fee, suggest you spent $152 on the cash advance. Maybe $150 for the card and a $2 fee.

For interest, seems roughly correct for $152 for 27 days.

 

[MEL_Traveller]

Regarding the interest rate of the cash advance, anyone knows how it is calculated? I have a cash advance fee of $4.56 and 27 days later I received the interest rate (fee and charge) of $2.47, which seems a bit too much?

Interest charges would be 22% or whatever, divided by 365, times the number of days till paid. So if you spent $152 as per oz_mark’s calculations that would come to $2.47.

 

[AUElwood]

Got it. Thanks. It’s such a simple calculation but I overlooked how high the cost be running in compound interest.

It’s the cost of being lazy

 

[Bengingerflea]

Kinda annoying but it tracks. If the merchant descriptor is basically a gift card reseller, some issuers treat it like cash equivalent and auto slap the fee plus interest.

I’d screenshot the product page showing it’s a normal retail gift card purchase, then ask them to reclassify it, and in the future use a card that you know won’t code it as cash advance, or just buy the physical card at Coles Woolies.

I used NOSH once after getting stuck with a card I couldn’t use, but I wouldn’t touch PayPal giftcard portals again if your bank is flagging it.