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heard repeatedly on other forums that from today many people are finding cash transaction fees on giftcard purchases. Someone was charged £3 fee for a £10 giftcard! Doubt (fingers crossed) AMEX follows suit.
Further insight Natwest says the transactions are now processed by your supplier as “POI FUNDING TRANSACTIONS” which is treated as cash advance while it was previously processed as “MISCELLANEOUS AND SPECIALTY RETAIL STORES”.
It’s not the bank deciding to charge cash advance fees on the merchant. The bank doesn’t decide the transaction MCC (POI Funding Transaction – MCC 6540 on Mastercard). It’s chosen by the merchant themselves or it’s giving to their merchant account.
Sounds like the merchant has changed their MCC to one that attracts cash advance fees on your card.
This has nothing to do with gift cards themselves but the store you bought them from.
It’s not the bank deciding to charge cash advance fees on the merchant. The bank doesn’t decide the transaction MCC (POI Funding Transaction – MCC 6540 on Mastercard). It’s chosen by the merchant themselves or it’s giving to their merchant account.
Sounds like the merchant has changed their MCC to one that attracts cash advance fees on your card.
This has nothing to do with gift cards themselves but the store you bought them from.
Thanks for that. It does seem to be WEGIFT issued, which is one of UK’s largest gift card providers.
I suggest that you buy your gift cards from a supermarket e.g. Morrisons. There are often statement credits available, although not at present and no charges.
TCB use wegift, for example today they have a spend £5 get £3 back offer, getting a gift card is an easy way to get that to track.
Who do airtime use? They’re another one where buying gift cards is the usual route for hitting a promo target.
TCB use wegift, for example today they have a spend £5 get £3 back offer, getting a gift card is an easy way to get that to track.
Who do airtime use? They’re another one where buying gift cards is the usual route for hitting a promo target.
Gift Card Emails come from Simfonia Retail when you buy a gift card on Airtime Reward, but I think debit transactions on your card show as Airtime Rewards
Why not just buy the GC from supermarkets?
Why not just buy the GC from supermarkets?
The Airtime and TCB gift cards offer a worthwhile bonus , albeit for relatively small amounts of spend. So just something to watch out for now , as per the OPs example. You buy a £10 gift card on TCB with your credit card to get a £2 cashback bonus, but then get dinged a £3 fee…….better to use a debit card and forgo the handful of points for the purchase.
I have multiple transactions from WEGIFT this week (multiple TCB bonus) and no sign of any fees on my Amex… but tbh, have no idea how fees show up on Amex, never had any!
I have multiple transactions from WEGIFT this week (multiple TCB bonus) and no sign of any fees on my Amex… but tbh, have no idea how fees show up on Amex, never had any!
Check the statement it will show fees/charges there
Statements only come once a month.
Been using Chase and their debit card in case this happens, as the 1% guaranteed cashback is fine for the extra discount on the gift cards.
Pretty much spent £1.82 to get a £5.01 Deliveroo gift card last night with TCB and their £3 bonus.
Just realised that some of giftcards I regularly buy are issued by WeGift, so I have a few questions:
1. I tend to buy them with my Barclaycard Avios card – is there anywhere I can check whether this is treated as a cash advance in the app/online, apart from my statement, which only comes once a month?
2. I’ve had a read of the T&Cs of the Barclaycard Avios card, but just wanted to be sure – it says it charges 2.99% (with a minimum of £2.99). Does this mean even if I clear my balance in full every month, I still get charged 2.99%/£2.99 per WeGift transaction?
3. Some other giftcards I regularly buy are issued by VexRewards – any news whether they’re making a similar change to the MCC?
Been using Chase and their debit card in case this happens, as the 1% guaranteed cashback is fine for the extra discount on the gift cards.
Pretty much spent £1.82 to get a £5.01 Deliveroo gift card last night with TCB and their £3 bonus.
TCB gift card turned up as the voucher market on my card not WEgift
Been using Chase and their debit card in case this happens, as the 1% guaranteed cashback is fine for the extra discount on the gift cards.
Pretty much spent £1.82 to get a £5.01 Deliveroo gift card last night with TCB and their £3 bonus.
TCB gift card turned up as the voucher market on my card not WEgift
done 2 in the pas 3 days on Amex and they’ve both been Wegift, so I would assume it’s the actual gidt card you purchase as to which vendor bills them. These were both M&S
Been using Chase and their debit card in case this happens, as the 1% guaranteed cashback is fine for the extra discount on the gift cards.
Pretty much spent £1.82 to get a £5.01 Deliveroo gift card last night with TCB and their £3 bonus.
TCB gift card turned up as the voucher market on my card not WEgift
done 2 in the pas 3 days on Amex and they’ve both been Wegift, so I would assume it’s the actual gidt card you purchase as to which vendor bills them. These were both M&S
I’m seeing it come through as Wegift when I pay with Amex, and as The Voucher Market when I pay with Mastercard. The merchant Narrative on my recent Amex transaction was Miscellaneous – other. The merchant narrative on the Barclaycard transaction was Miscellaneous and Special, but that was back before Christmas.
Amex seems to be absolutely fine and someone else mentioned Hali Clarity but some stating their Santander, Natwest and Barclays CCs have charged a fee.
Been using Chase and their debit card in case this happens, as the 1% guaranteed cashback is fine for the extra discount on the gift cards.
But if some gift card merchants are being seen as cash advances for credit cards, they may not qualify for chase cashback
I had to do an ACRO police check recently and chase didn’t give cashback on that 🙁
Many cards are tightening up on spend that is cash-like. HSBC used to let me pay tax, top up my ISA etc using my card, and get full points on it. Now they charge a cash advance fee, and do not give points. The MCC has remained the same. It is how they treat the transactions, no doubt due to MS-ing.
Just realised that some of giftcards I regularly buy are issued by WeGift, so I have a few questions:
1. I tend to buy them with my Barclaycard Avios card – is there anywhere I can check whether this is treated as a cash advance in the app/online, apart from my statement, which only comes once a month?
2. I’ve had a read of the T&Cs of the Barclaycard Avios card, but just wanted to be sure – it says it charges 2.99% (with a minimum of £2.99). Does this mean even if I clear my balance in full every month, I still get charged 2.99%/£2.99 per WeGift transaction?
3. Some other giftcards I regularly buy are issued by VexRewards – any news whether they’re making a similar change to the MCC?
1. It’s comes down to the cover-all “Cash like transactions” in the T&Cs and whether Barclaycard are treating the MCC used by the retailer as a cash-like transaction
2. If it’s treated as a cash-like transaction You’ll be charged 2.99% as a transaction fee *and* interest from the transaction date until it is paid too.
3. There are so many different issuers of Gift Cards so it will be hard to know until you see the MCC on the statement. I buy them from PAW, The Care Bears, various other staff sites. Generally I buy most of them from mainstream retailers though as they tend to have good rebates on Amex/BoS/Barclaycard etc.Many cards are tightening up on spend that is cash-like. HSBC used to let me pay tax, top up my ISA etc using my card, and get full points on it. Now they charge a cash advance fee, and do not give points. The MCC has remained the same. It is how they treat the transactions, no doubt due to MS-ing.
I suspect, until recently, it was simply beyond the capability of many bank’s legacy systems to handle the various MCCs differently (beyond the classic ATM withdrawal or cash advance).
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