Capital One - Cash Advance Fee?

What was the SO to? If it was to an account with an online betting service or some e-cash operators, then most credit card companies treat payments to them as being cash transfers rather than the purchase of a service - in which case, the cash advance fee applies.

Mark

It was a SO to the card, not from the card...

In that case, they're not related. But my qustion still applies: have you made any payments using the card that could be construed as cash transfers?

Mark

Not that I know off:..

That's the one. Bingo is gambling. Paying into an online gambling account is treated as a cash advance.

Mark

Ahh! Thanks mate! Don't think I'll use my CC on there again!

Is it all credit cards doing this now? I had seen T&C change on a few.

Most are. I think there might be one or two that still aren't.

Does the system not charge the bookie the usual credit card fee then? That's the usual justification for treating it as a cash advance, eg if you withdraw cash you get 100% of what you've withdrawn.

The bookie does get charged the credit card fee. The justification in this case is that people who gamble with borrowed money are less likely to pay it back than other types of borrowers.

Sounds like bullshit to me. Most cash advance fees have a minimum, 2% min 2 or 3. So the same fee would apply to someone gambling 1 or

Why is someone who places 10 1 bets more of a risk than someone who places one 100 bet?

I don't think that you transfer the money 'per bet' you feed an account that the bets are taken from.

BICBW

tim

Indeed. If you pay per bet (eg, if paying by credit card when betting at an on-course or High Street bookie), you don't get charged the cash advance fee. You only get charged the fee if the payment is funding a pre-pay account that is later used to pay for bets.

The reason for this is nothing to do with gambling per se. The point is that taking money from a credit card and placing it into a holding account, which is then used to make subsequent payments, is essentially the same (from the card company's point of view) as withdrawing the money in cash, sticking it under your bed and then using it to make subsequent payments. And it isn't just gambling accounts that this applies to - paying into other forms of ecash account are also often treated treated as cash advances by the card companies.

Mark

betting

holding

Why do card T&C's specifically mention "gambling transactions", rather than "holding account transactions"?

Because they saw a rise in online gambling and wanted a bit of extra cash.

Aren't gambling debts unenforceable?

Can I go bankrupt because of bankruptcy debts?

Yes. sort of. Gambling debts are a debt of honour and cannot be processed through the courts so debts with gambling companies can't alone make you go bankrupt. If you have over extended on credti cards, overdrafts and such and cannot pay them then you can go bankrupt, HOWEVER - bankruptcy caused by gambling debts incurs a penalty where bankruptcy order restrictions can last for up to 15 years.

So are they making sure they class it as cash so they can claim it back? Or just earn more from the transactions to cover any risk?