The Lemon Fool

My old phone has decided it dosent want to play anymore , so after looking online and seeing samsung would give me £100 for my old phone and then another £100 cashback after i got the phone I decided its time to change.

I was then offered 2 yrs interest free credit by samsung who use a company called samsung glow to provide the credit. All good and signed up to and as the phone was over £100 decided to pay the deposit of £54.90 by credit card to get section 75 protection. Just looked at my credit card account online and find that for some reason this deposit has been treated as a cash transcation and tesco have charged me £2.19 cash transaction fee. Its quite clear in the Contract that the payment is to be made to samsung , but the deposit has been taken by the finance company ( Samsung Glow)

going to dispute this as no where in the t&C is this mentioned as been treated as a cash transaction but want to make others aware of this should they decide to upgrade their phone through samsung interest free credit

Which credit card provider are you using? If you look at their T&Cs I expect that you will find that some payments are treated as a cash advance, e.g. gambling. I expect that you will find that loan repayments are in the list. You will have S75 protection anyway if you are taking out a loan, so it is not clear that you gain anything by paying by credit card.

You can’t pay debt with consumer credit (longstanding rule in the UK as far as I’m aware) hence why you’ve been debited as cash. I’d love to be able to pay my mortgage with American Express but…

Doesn’t sound like sharp practice here.

elephanthunt11 wrote:You can’t pay debt with consumer credit (longstanding rule in the UK as far as I’m aware) hence why you’ve been debited as cash. I’d love to be able to pay my mortgage with AmericanExpress but…

Doesn’t sound like sharp practice here.

Is paying a deposit for something considered to be paying debt?

Surely the debt is the total cost less the deposit paid, whether by cash, debit card or credit card, or am I misunderstanding something here?

The bank providing the credit card will only have the Merchant Code to go on. That will be the loan company. I expect that the bank's T&Cs will say that loan payments count as cash advances. Even then, they are giving credit to pay credit, albeit short term credit.

GeoffF100 wrote:The bank providing the credit card will only have the Merchant Code to go on. That will be the loan company. I expect that the bank's T&Cs will say that loan payments count as cash advances. Even then, they are giving credit to pay credit, albeit short term credit.

I fell foul of cash advances with a poker website, the CC only cares about the merchant code and treats all payments as either cash advances or payments and charges suchly.

The T&Cs for may Barclaycard Rewards card say "Cash-like transactions, including:". The list does not include loan payments, but there would be nothing to stop them charging interest for that (fortunately that card does not have a cash advance fee too). I have seen reports of mobile phone top ups being counted as cash withdrawals, but that has not happened to me with any of the credit cards that I have used. I think the moral is, "if in doubt use a debit card".