Charged a cash advance fee for a gift card purchase

[Rich]

There is an old now closed thread cash advance fee gift card which concluded that the source (Finder) didn't know what it was talking about.
Well it has happened to me with Commbank. The transaction shows as "PAYPAL * WOWGIFTCARD" and they confirmed that is why I was charged a $4 fee, plus interest. I am in the process of disputing this.

 

[asterix]

There is an old now closed thread Search results for query: cash advance fee gift card which concluded that the source (Finder) didn't know what it was talking about.
Well it has happened to me with Commbank. The transaction shows as "PAYPAL * WOWGIFTCARD" and they confirmed that is why I was charged a $4 fee, plus interest. I am in the process of disputing this.

Yes, I'd read somewhere that people were getting charged the cash advance fee when buying gift cards from the Woolworths portal with Paypal. I only use AMEX, Citi or my HSBC card for purchasing gift cards as I'm too worried CBA will charge me the cash advance fee. The only exception is if I buy them in person at Coles or Woolworths.

 

[Rich]

Yes, I'd read somewhere that people were getting charged the cash advance fee when buying gift cards from the Woolworths portal with Paypal. I only use AMEX, Citi or my HSBC card for purchasing gift cards as I'm too worried CBA will charge me the cash advance fee. The only exception is if I buy them in person at Coles or Woolworths.

They refunded the fee and interest, as a once off gesture of goodwill of course.
I'd always used Amex via PayPal previously, so back to that way I suppose. I don't see why using PayPal would change things as presumably WOWGIFTCARD would still come up on the statement either way.

 

[misohoney]

Hi @Rich i just had the same issue for a wow gift card purchase. This is a system issue by them as gift cards are not cash advances. I imagine this happens at scale and could easily be millions of $ in fees

 

[Rich]

Hi @Rich i just had the same issue for a wow gift card purchase. This is a system issue by them as gift cards are not cash advances. I imagine this happens at scale and could easily be millions of $ in fees

It is not a mistake in their opinion. From the chat:
On this particular card, this fee is charged when you withdraw or transfer cash from your credit card. It’s also charged for cash equivalent transactions such as gambling, money transfers, buying lottery tickets or gift cards
I checked the full T&C. It gives examples of cash advances (i.e. implying the list is not exhaustive) but it does not mention gift cards. In fact, the defined terms refer to gift cards as something provide by CBA as an award purchase. Not that I'm a lawyer but you'd think you'd have a case against them
Anyway awaiting my refunds of fee and interest.

 

[misohoney]

Thanks for the info. I paid with PayPal too which creates an additional barrier/intermediary and reason for it not to be a cash advance. I suspect their algorithm automatically flags the words gift card and trigger a charge.

Their contact centre in Manilla is less than helpful when dealing with this. Depending on outcome, I may escalate to the ombudsman

 

[misohoney]

I spoke to a guy on the phone. Not only do you get hit with a cash advance fee, you get hit with interest as long as the amount isn't paid off. This is at their ridiculous interest rate

Edit: got my refund after submitting a complaint with AFCA. @Rich highly encourage you go down this path if they refuse you

 

[Aeryn]

Interestingly Choice magazine published an article on just this scenario today: Using your credit card to buy gift cards? You might be paying more than you think | CHOICE

I found it interesting that e article also says 'ANZ Bank also says that paying a bill with your credit card in person at a bank or post office will be treated as a cash advance, which may come as a surprise to some customers."