Credit Card Charges To Be Scrapped
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http://www.bbc.co.uk/news/business-40648641
Will the bookies scrap them too? Newbies could get an interest free credit card, deposit (depending on maximum spending limit) & complete the roll over bonus for new accounts.
+0July 27, 2017 at 4:06 pm
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They’d surely have to, but the transaction fee isn’t the main issue with a credit card…. betting deposits are generally treated as a cash advance so don’t qualify for interest free and incur interest from the day of transaction not end of month
+0It just means that those that do not use credit cards will have to pay a little bit extra…. you can be sure it is the banks that have pushed for this.
+0We won’t have to pay extra. Means all deposits from cards won’t have charges.
No impact at all from a betting perspectiveCompletely outside of betting it MAY result in slight increases on some things where the seller can no longer recoup transaction fees…. but the banks won’t have pushed for it as it may force the credit card companies to lower fees if companies consider not using them.
+0The business will recoup the lost charges by increasing the price slighly… the credit cards are all owned by banks.
The reason banks make so much money is that they take a percentage of just about every transaction now…doing away with cash was a massive scam.
+0Yes, so won’t affect betting…. and wouldn’t been pushed for by banks
+0as Betman said, it’s not the charges for a transaction that’s really relevant for betting.
the charges are being scrapped for things such as when you pay for car insurance outright for a year or flights- the sights usually levy a percentage charge for this, which is being scrapped.
with gambling however, this is different. Your credit card company will treat any gambling transaction as if you’ve just gone to the cashpoint and withdrawn the money.
to that end, they can apply the charges that are related to this type of transaction which are usually a MUCH higher rate of interest than a purchase, a percentage charge on the amount you have withdrawn (or in this case, deposited) and it will sit at the bottom of your credit card account as the last thing that gets paid off.
So if you have an outstanding balance on your credit card of purchases or a balance transfer, every time you make a monthly payment, these transactions get cleared first and the highest interest rate transactions get paid off last.
So unless you clear your credit card balance every month, using your credit card to deposit to bookies is a very expensive method. and even then, there will be the percentage charge on the amount you have deposited regardless of this.
I used to work for the credit card department for a large bank so I know all of this stuff, and it frequently catches people out.
some people had a couple of quid on the national lottery website paid by their credit card that they thought nothing of, but ended up taking them months to pay off as it gets cleared last, whilst building up a large amount of interest+0
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