Just a word of warning, particularity if you have a Woolworth Qantas credit card.
Like many people, I use my CC for pretty much all purchases and have it set up to pay off in full by direct debit each month.
I've had this card for maybe 3-4 years and always done it this way.
Very occasionally I get an interest charge show up on the account for a dollar or two. I questioned it in the past as I pay off automatically every month so wondered why there would ever be an interest payment. I was told that some charges can be classed as "cash advances" at times, which have no interest free period. I never looked into it any further as it was only ever a few dollars here and there.
Today, I check my statement and there's a $100+ interest charge for "Cash Advance". Now, I NEVER EVER get cash out on my credit card.
I called customer services to check, they explained that:-
In October, Tatts Lotto took a $2.50 processing fee for kindly selling me an $18 lotto ticket.
That fee went onto the card as "Cash Advance - Tatts Lotto".
Now, the total bill for that month was around $2000 and the direct debit was set to pay the bill off in full.
What the guy told me was, from my direct debit the "Cash Advance" of $2.50 is taken out first, leaving only $1997.50 toward the credit card bill. Then, because the bill isn't paid in full, interest is applied ON THE WHOLE BILL!!! So, that $2.50 Tatts Lotto processing fee cost me a further $100 in interest.
He agreed it was ridiculous, especially given that my account is set up to automatically pay in full each bill, so it is an issue with how they process payments.
He has arranged to refund the interest charge in full.
This has only happened since Woolworths Credit Cards were sold from HSBC to Macquarie, so seems there has been a change in their system somewhere.
So, if anyone else has a Woolworths CC just be carefull with any transactions that show up as "Cash addvance" and if you get charged ineterst, make sure you get on them for a reversal.
Like many people, I use my CC for pretty much all purchases and have it set up to pay off in full by direct debit each month.
I've had this card for maybe 3-4 years and always done it this way.
Very occasionally I get an interest charge show up on the account for a dollar or two. I questioned it in the past as I pay off automatically every month so wondered why there would ever be an interest payment. I was told that some charges can be classed as "cash advances" at times, which have no interest free period. I never looked into it any further as it was only ever a few dollars here and there.
Today, I check my statement and there's a $100+ interest charge for "Cash Advance". Now, I NEVER EVER get cash out on my credit card.
I called customer services to check, they explained that:-
In October, Tatts Lotto took a $2.50 processing fee for kindly selling me an $18 lotto ticket.
That fee went onto the card as "Cash Advance - Tatts Lotto".
Now, the total bill for that month was around $2000 and the direct debit was set to pay the bill off in full.
What the guy told me was, from my direct debit the "Cash Advance" of $2.50 is taken out first, leaving only $1997.50 toward the credit card bill. Then, because the bill isn't paid in full, interest is applied ON THE WHOLE BILL!!! So, that $2.50 Tatts Lotto processing fee cost me a further $100 in interest.
He agreed it was ridiculous, especially given that my account is set up to automatically pay in full each bill, so it is an issue with how they process payments.
He has arranged to refund the interest charge in full.
This has only happened since Woolworths Credit Cards were sold from HSBC to Macquarie, so seems there has been a change in their system somewhere.
So, if anyone else has a Woolworths CC just be carefull with any transactions that show up as "Cash addvance" and if you get charged ineterst, make sure you get on them for a reversal.