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

 

[Csk]

I believe so as I don't think cash advance fees apply to debit cards.

Yes they can ,
because when you make a transaction from a Debit Card anywhere but the Australian EFTPOS saving network (Pos terminals and Savings/check button)

you are using the Visa / Mastercard global network and the Visa / Mastercard sets the fees for transactions through that network

• Anywhere online or direct debit where you enter the Card Number on the front
• Tap at register: if the machine doesnt support EFTPOS
• overseas

Its irrelevant if you have money in the bank account all that matters is the network that handles the transaction and the banks will at their discretion pass / inflate those fees onto us

The Visa / Mastercard logo on the front of our cards are a feature not a bug, a means to increase cards compatibility around the world and online, but the trade off is Visa / Mastercard call the shots

 

[bamzero]

Yes they can ,
because when you make a transaction from a Debit Card anywhere but the Australian EFTPOS saving network (Pos terminals and Savings/check button)

you are using the Visa / Mastercard global network and the Visa / Mastercard sets the fees for transactions through that network

• Anywhere online or direct debit where you enter the Card Number on the front
• Tap at register: if the machine doesnt support EFTPOS
• overseas

Its irrelevant if you have money in the bank account all that matters is the network that handles the transaction and the banks will at their discretion pass / inflate those fees onto us

The Visa / Mastercard logo on the front of our cards are a feature not a bug, a means to increase cards compatibility around the world and online, but the trade off is Visa / Mastercard call the shots

You may be mixing up cash advance fees with general credit card transaction fees.

It is my understanding that a debit Mastercard/Visa isn't providing any credit therefore not advancing any cash. If you don't have funds in the account, the transaction should decline (though be sure to check there isn't any overdraft enabled for the account, CBA may have this on by default from memory). This is different to a credit card where they are providing credit for purchases, but charge a fee for withdrawing cash or the transaction being treated as such.

Credit card transaction fees and foreign currency/processing fees may still apply of course.