CREDIT CARD CHARGE FOR INSURANCE PAYMENT
Discussion
Just want to flag up an issue.
I recently renewed my car insurance and used a credit card to make the payment to my broker. When I checked my credit card statement there was a transaction called "cash Fee" of £87 which I did not recognise. I contacted my card operator (MBNA) and whilst the call handler was not totally au fait with what had happened, she advised that the fee related to the payment to my broker and that under the Ts ands C's such payments could attract a fee - which was news to me.
I copy the relevant section of the Ts and Cs below.
Cash transaction fees
When using your credit card or card number, a cash transaction fee may apply for:
Using your available credit to obtain cash (e.g. at an ATM or at an over the counter service).
Gambling transactions, using your card to make transactions at casinos, betting outlets and bookmakers, and buying online lottery tickets or gaming chips, share trading or spread betting.
Buying foreign currency.
Sending money orders or wire transfers (other than balance transfers or money transfers).
Buying coins, banknotes or digital currency.
Paying government or court fines, enforcement penalties, fees or costs.
Please refer to the terms and conditions of your account for specific details applying to you.
It appears that they treated my payment as a payment for online trading which I have highlighted above and the cause of this appears to be that the trade description held by MBNA for my broker classifies them as Security Brokers/Dealers. I have spoken to my broker about this and they have had the same issue a number of times recently with their clients and they are making their own enquiries about this.
MBNA have refunded the charge but I advise any of you using your credit card to pay for car insurance to check your credit card statements !
I recently renewed my car insurance and used a credit card to make the payment to my broker. When I checked my credit card statement there was a transaction called "cash Fee" of £87 which I did not recognise. I contacted my card operator (MBNA) and whilst the call handler was not totally au fait with what had happened, she advised that the fee related to the payment to my broker and that under the Ts ands C's such payments could attract a fee - which was news to me.
I copy the relevant section of the Ts and Cs below.
Cash transaction fees
When using your credit card or card number, a cash transaction fee may apply for:
Using your available credit to obtain cash (e.g. at an ATM or at an over the counter service).
Gambling transactions, using your card to make transactions at casinos, betting outlets and bookmakers, and buying online lottery tickets or gaming chips, share trading or spread betting.
Buying foreign currency.
Sending money orders or wire transfers (other than balance transfers or money transfers).
Buying coins, banknotes or digital currency.
Paying government or court fines, enforcement penalties, fees or costs.
- ****Online trading such as share dealing or investments.*****
Please refer to the terms and conditions of your account for specific details applying to you.
It appears that they treated my payment as a payment for online trading which I have highlighted above and the cause of this appears to be that the trade description held by MBNA for my broker classifies them as Security Brokers/Dealers. I have spoken to my broker about this and they have had the same issue a number of times recently with their clients and they are making their own enquiries about this.
MBNA have refunded the charge but I advise any of you using your credit card to pay for car insurance to check your credit card statements !
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