Immediate payment of cash transaction interest?

  • Serif's Avatar
    Fresh Eyes
    I have my credit card account set up to be paid off in full via a monthly direct debit. I'm aware that certain transactions incur a fee based on a percentage of the amount. There is also interest charged on this amount until it is paid off. Can I pay the amount of the cash transaction immediately so as to avoid having to pay this interest?
  • 3 Replies

  • Verified Answer

    ChristopherP's Avatar
    Your Community Expert
    Verified Answer
    @Serif Hey, thanks for getting in touch.

    When you make a cash transaction, we charge a fee of 3.99% and interest at your standard cash transaction rate. This is from the date of the transaction until the date this cash balance is paid.

    We consider the following types of payments to be cash transactions: gambling transactions, wire/international money transfers, repaying borrowing, purchasing non-Sterling currency outside of Tesco, payments to prepaid or virtual cards, purchasing gift cards, investments, share trading and spread betting.

    Have you made any of those types of payments?

    If so, you will see interest charged over two statements. The first statement will show the cash transaction fee and the interest from the date of the transaction until the statement came out.

    The second statement will show interest accounting for the period between the first statement coming out and the balance being paid in full.

    After this there’d be no more interest applied to this specific transaction.

    If you need to ask a question about a Tesco Bank product, you can make a post in Help & Support here

    Also, feel free to Introduce Yourself!
  • Serif's Avatar
    Fresh Eyes
    @ChristopherP Thanks for the reply.

    I understand about the fee charged, but my question was whether I can avoid having to pay the interest by making sure my account has a zero balance by crediting it on the day that the cash transaction takes place? My reasoning being if there is nothing owed on the account then there should be no interest due?
  • ChristopherP's Avatar
    Your Community Expert
    @Serif Ahh, okay. Yes, that is correct 😊