# Cash advance fee on credit card which was in credit



## Bryan99 (17 Jan 2010)

I've a Bank of Ireland Mastercard. I recently used it for a bank giro for EUR1370. I transferred that sum onto my card from my current account. In other words my card balance +1370.

Tonight, I checked my account to find they  charged me a cash advance fee for EUR20 even though 1) I didn't get any cash and 2) my credit card was in credit.

Can they do this?


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## TarfHead (18 Jan 2010)

Based on the information you provided, they have made a mistake. I have never heard of a fee for lodging to your card.

What did they say when you phoned them ?

BTW, if you take out cash from your card, the fact that your card was in credit should have nothing to do with a fee charged, i.e. you pay a cash advance fee regardless of your card balance.


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## Bryan99 (18 Jan 2010)

> BTW, if you take out cash from your card, the fact that your card was in credit should have nothing to do with a fee charged, i.e. you pay a cash advance fee regardless of your card balance



This is what I did. My account was in credit, I paid a bank giro and was charged this fee even though I was in credit.


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## TarfHead (18 Jan 2010)

Bryan99 said:


> This is what I did. My account was in credit, I paid a bank giro ..


 
Did you transfer from your card to your current account ? If so, that would explain the cash fee.

If not, then phone them and get some detail for the basis of the charge and post it here.



Bryan99 said:


> ..  and was charged this fee even though I was in credit.


 
Being charged a fee is nothing to do with your account balance, i.e. if you're in credit, you pay, if you're in debit, you pay.


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## Bryan99 (18 Jan 2010)

My branch said I should only have to pay the cash advance fee on what I borrowed. Card services said I have to pay the full amount and that the branch were wrong ?!


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## TarfHead (18 Jan 2010)

It is not clear, from your description, what you have done.

"_I've a Bank of Ireland Mastercard. I recently used it for a bank giro for EUR1370. I transferred that sum onto my card from my current account._"

So you transferred from your current account to your credit card ?

"_My account was in credit, I paid a bank giro and was charged this fee_"

Which account, current or credit card, was in credit ? Again, a fee is nothing to do with the account balance. On what account was this fee charged ?

"_I paid a bank giro _"

What does this mean ? You transferred from your credit card to your current account, or from your current account to your credit card ?

"_My branch said I should only have to pay the cash advance fee on what I borrowed_"

What did you borrow ? If you transferred funds from your credit card to your current account, that is, to all intents and purposes, the same as taking cash. If you transferred from your current account to your credit card, then why are Mastercard charging you ?


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## Bryan99 (18 Jan 2010)

My credit card had an outstanding balance of -€200. I transferred €1370 from my current account onto my credit card. It subsequently was in credit to the sum of €1170.

I used my credit card to pay a university fee via a bank giro. 

The credit card company subsequently charged me a cash advance fee of €20.70 which I can see on my credit card statement. This cash advance fee was for using my credit card to pay the university €1370 and calculated at 1.5%.

My problem is that I can't understand why I have to pay a cash advance fee on funds that were my own i.e. money I had transferred onto my account to credit card to bring it into credit.

Surely I should only have to pay a cash advance fee on the amount of credit I needed, that is the €200?


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## TarfHead (18 Jan 2010)

That is clearer.

It's an expensive lesson to learn. The cash advance is nothing to do with credit balance, debit balance, your money, borrowed money. Mastercard facilitated you in making a cash payment and you pay a fee for the service.

But why did you not just fund the giro from your current account  ? Why bring the credit card into the transaction ?


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## Sarn (18 Jan 2010)

Based on what you posted you weren't far enough in credit to cover the €1370. You only had €1170. Regardless it only seems right that you should only have had to pay the 1.5% advance fee on the €200 as the other part was not 'advanced' as it was your cash that you were reclaiming. Did you allow enough time for the funds to be cleared into the card?


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## Bryan99 (18 Jan 2010)

I sometimes put extra money on my card if I want to put extra cash aside for an upcoming purchase. Believe me I won't be doing it again. €20 for my own money? Madness.

Yes I allowed enough time. My credit card limit is only €400 so it would never have been able to cover that much. It's a Mastercard by the way.


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## chlipps (18 Jan 2010)

I dont understand why you didnt pay direct from your current account.

I have always been able to withdraw money from VISA abroad if I have transferred money into the account without any fee being incurred. Not familiar with master card so cannot comment on them.


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## Perplexed (19 Jan 2010)

Normally a cash advance fee will not apply if the CC is in credit to cover the amount of the withdrawal. If you withdrew €1370 and it was in credit to the tune of €1170 then  a fee will occur as your cash withdrawal was not covered.

The fee is a Cash advance fee and is totally separate to the interest charge.

You would have been much better to pay the CT from your c/a and just take the €200 required from your MC. Then the fee charged would have been a  % of the €200 & not the €1370.

Did you discuss this transaction with the cashier?  They could have clarified.

Having a Mastercard in credit is the smart way to withdraw funds abroad without incurring a cash advance fee. However if you go over the amount of your credit balance, which does does not include your credit card _limit_ (€400 in your case) you will be charged the fee.


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