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Community


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A one-stop forum for all your banking questions

Cash finance charges

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johnvalkirby
Frequent Visitor

I went to the bank and they said to me if I used my credit card for petrol transactions they were considered cash transactions and charged acordingly .

So now I have not bought any petrol and I'm still getting cash transaction charges !!!!

NOTE:  I was never informed by the bank about this, I have used my credit card for years and obtaining u count rewards because the bank said if i use my credit card I get rewards but the rewards do not come close to the cash transaction fees .

 

Is this not called fraud ? 

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Anim8
Occasional Contributor

So I fanally went to my bank and the very helpful manager looked into it for me and gave me this explanation:

 

Back in January 2016 I transfered a large amount into someones account (to pay a deposit on property). Standard Bank sees this as you using your credit card as a 'cash wallet', because it wasn't a 'purchase'.

 

He explaines:

The “Cash Finance Charge” as displayed on the statement doesn’t refer to a fee that you pay, it refers to the interest that you pay on the amount that is owing. Please see below:

 

Finance Charge: Interest paid on the outstanding amount owed incurred by means of card swipes and online payments.

Cash Finance Charged: Interest paid on the outstanding amount owed incurred by means of cash withdrawals, transfers and beneficiary payments.

 

It can be compared to a personal loan that you sign up for. Every month you would pay interest on the loan, but as the total outstanding amount of the loan reduces, so does the interest, but interest will be charged up until the loan is settled.

 

So basically you will keep paying interest for the privilege of using your credit card for cash until you settle the amount in full, not only for that amount but all your purcahses too (for me it was 2.5 years).

My advise is look at your statements from loooooong ago when you used your credit card to transfer an amount and not as a purchase - you're paying interest on it.

 

I hope this helps.

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TB2015
New Contributor

This is not a solution. This does not convey what is occurring on this account, nor is it standard pratice.

I have sent my details to email.

But this type of business practice will make me move my accounts and end my association with Standardbank of +30 years.

I will also change the bankers accross the group companies which I manage.

 

 

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TB2015
New Contributor

This is not a solution. This does not convey what is occurring on this account, nor is it standard pratice.

I have sent my details to email.

But this type of business practice will make me move my accounts and end my association with Standardbank of +30 years.

I will also change the bankers accross the group companies, I manage.

 

 

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KarinM
Occasional Visitor

I too have the same query. What I don't understand is that this question of cash finance charges is frequently asked yet there has never been an adequate answer posted on the forum page. Why are people told to send in their details so that the bank can "look into them"? Surely there's a standard answer why a cash finance charge is charged. We your customers want that answer! A simple "you withdrew R500 from your credit card and for this have been paying back an exorbitant R382 per month for the last 5 years" will help so that matters can then be taken further. Have any of you tried the Ombudsman? 

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Anim8
Occasional Contributor

Thulani from Standard Bank Complaints Resolution Centre called in an attempt to explain the charges but it was too complicated for me to understand. He then sent me an email "This is a standard fee for every credit card provider and not just limited to Standardbank."

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johanerasmios
New Member

Wow. Whats the point of this forum if all you do is point them to an email address?

Seriously, get training on your products and up the service.

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Anim8
Occasional Contributor

OK so this is what Standard Bank are saying:

In June 2017 I withdrew R1000 cash from an ATM

Since then they have been charging me every month for a total so far of R866.99 'Cash Finance charge'

And this deduction is based on your balance and NOT on the cash withdrawal?

That is on TOP of the interest and finance charges!

 

Dear stanbard bank, please explain your policy

Reply
Anim8
Occasional Contributor

Sending the query now

 

Thank you

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MandyP
Community Coordinator

Hello @Anim8,

 

Please note that the correct email address is [email protected]

 

Kind Regards,

Mandy

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Anim8
Occasional Contributor

Delivery has failed to these recipients or groups:

 

[email protected] <mailto:[email protected]> There's a problem with the recipient's mailbox. Please try resending the message. If the problem continues, please contact your helpdesk.

 

I have been charged R21.51 for having a balance of 98c on top of my fixed monthly service fee 

The only transactions were APO Payments and Fund Transfers INTO the account. No purchases and no withdrawls.

If that is the way Standard Bank conducts it's business them i'm cancelling my 30+ year old account

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Ade
New Contributor

what a waste of time

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MandyP
Community Coordinator

Hello @Ade

 

To assist you further on this, please forward us with your account details and contacts in order for us to look into this for you.

 

You can mail us here: [email protected] with the subject line "cash finance charges" for further assistance. Once we receive your mail we will investigate and contact you for feedback.

 

Regards,

Mandy

 

 

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Ade
New Contributor

NO. Your cop out response to simply pass the buck and refer clients to a website with bank charges is unacceptable and of no help at all. Answer the questions asked! Again, I ask WHY has money been deducted from my account when i have NEVER made cash withdrawals from my credit card! And please DO NOT REFER ME TO A WEBSITE. I am seriously considering moving banks. With that will go the accounts of both my children and the NGO I am involved with and for which I am the chairperson.

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Ade
New Contributor

I have also noticed an absolutely ridiculous amount of money being taken off my credit card. Reading the other queries in this regard and the answers actually annoys me. I have NEVER EVER withdrawn cash from my credit card. I use it for emergencies only. Yet on 28 March R239.32 was deducted. On 28 April R272.61 was deducted. On 28 May R71.75 was deducted. WHAT is going on Std Bank? This is absolute theft. HOW can Std Bank deduct money from an account without any explanation at all. PLEASE EXPLAIN WHY YOU ARE STEALING FROM YOUR CLIENTS!

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Ade
New Contributor

I have also noticed an absolutely ridiculous amount of money being taken off my credit card. Reading the other queries in this regard and the answers actually annoys me. I have NEVER EVER withdrawn cash from my credit card. I use it for emergencies only. Yet on 28 March R239.32 was deducted. On 28 April R272.61 was deducted. On 28 May R71.75 was deducted. WHAT is going on Std Bank? This is daylight robbery and that without any explanation at all. PLEASE EXPLAIN. 

Reply
Elaine2
Occasional Visitor

@Boitumelo if I make internet payments directly from credit card account or transfer funds from my credit card to my linked cheque account are these transactions seen as cash transactions? Also if funds are paid directly into my credit card by an external party is this also seen as a cash transaction? I too am trying to establish why my cash finance charges are so high?

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zamo15
New Member
I have a similar problem, were you guys helped these amounts are huge. they above R100
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Boitumelo
Community Coordinator

Hello @Selinah

 

To assist you further on this, please forward us with your account details and contact to look into this for you.

 

You can mail us here: [email protected] for further assistance. Once we receive your mail we will investigate and contact you for feedback.

 

Let us know should you need further assistance on this.

 

Regards,

Boitumelo

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Selinah
Frequent Visitor

I only did one withdrawal for R150 using the card, the charge was R153,16 and I got a R12 charge for using another bank's atm. So basically I was charged R165,16 to withdraw R150. Wow.

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