Cash transaction fee

  • Emmaparris's Avatar
    I have noticed a few ‘cash transaction fees’ on my June statement but do not understand where they have come from? I used my card abroad in April but they seem to follow payments mate to KLARNA however today one for £11 came up after I purchased euros from Sainsbury’s?? Help!! I got this card thinking it was 0% interest however it doesn’t seem to be!!
  • 7 Replies

  • ScottW's Avatar
    Hi , sorry to hear about the unclear charges. When you use your card to buy currency, either overseas or in the UK, these transactions are classed as cash transactions and fees and interest will be applied. This was mentioned in the notice of variation that was sent to all credit card customers in April of this year and came into effect at the beginning of June. This won’t have any impact on your existing 0% interest period.
  • nvt's Avatar
    On the look out
    >> This won’t have any impact on your existing 0% interest period.Yes it will. If the customer had a statemented (0% purchases) balance to start with(e.g. £500), and they see the cash transaction on the next statement, they'd have to clear (pay) that statemented balance (£500) before clearing the cash transaction.
  • JohnW's Avatar
    We'll attribute any payments towards the portion of your statemented balance which accrues the highest interest rate the fastest. This means that the cash transaction would be paid off before the 0% purchases portion of the balance. This only applies to transactions which appear on a statement. If a customer regularly pays their statemented balance in full each month in order to have a 0% interest rate on purchases then the entire balance will need to be paid. This means that the cash transaction portion and purchase portion of the balance must both be paid, not just the purchases part of the balance.
  • Hieroglyph's Avatar
    I too have suddenly got a cash transaction fee and a separate interest charge showing on my current statement but I have not used the card outside UK or for any foreign purchases or purchasing currency or cash withdrawals?? What's going on??
  • BroganM's Avatar
    Former Your Community Expert
    Hi , from 1st June 2018 cash transactions would be considered as the following: gambling transactions, wire/ international money transfers, repaying borrowing, purchasing non-Sterling currency outside of Tesco, payments to prepaid or virtual cards, investments, share trading and spread betting. Have you used your card for any of the other transactions above?

    When you make a cash transaction, you'll be charged a handling fee of 3.99% as well as interest at your standard cash rate from the date of the transaction, until the cash balance is paid. This means that you may see over the next interest 2 statements. The first statement will show the handling fee and the interest from the date of the transaction until the statement date. The second statement will show interest accounting for the period between the first bill being produced and the balance being paid in full. After this point there would be no more interest applied on the cash transaction.

  • Xamalia's Avatar
    Fresh Eyes
    I plan to switch to this bank soon. Could you please tell me what the payment percentage is?
  • ChristopherP's Avatar
    Your Community Expert
    @Xamalia Sorry, can you just clarify what you're looking for us to confirm?