[MinxyGirl]

Why has my husband been charged a cash transaction fee for purchasing a gift card? We've never come across this before when doing so using other credit cards so why has this been done? Not happy at all.

[ChristopherP]

@MinxyGirl Hey there, 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.

This means, 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.

[MinxyGirl]

@ChristopherP

Thanks for the quick reply however there is no mention whatsoever of gift cards coming under this type of transaction so we feel quite misled and as I said before we have never had this with any other credit card when we've bought gift cards.

Is there any way we can make a case for this to be refunded, and the subsequent interest which will be charged, as it is certainly not clear from your T&Cs that gift cards specifically fall under this 'clause' - I suspect I'm not the only person who's fallen for this and suggest whoever is responsible for writing the T&Cs and putting them on your website etc amends them urgently to make it crystal clear exactly what transactions are classed as cash, saying "such as" isn't sufficient when fees are charged.

[ChristopherP]

@MinxyGirl If you call the Credit Card team, they'll may be able to help with this. discuss this. I hope you get it all sorted – Chris
You can reach them on 0345 300 4278 (Mon - Fri: 8am to 9pm, Sat - Sun: 8am - 6pm) and they'll be happy to help.

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