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Cash finance charges

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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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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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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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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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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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johnvalkirby
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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dawn66
New Contributor

Good day, I have been struggling to get answers out of standard bank regarding this cash finacial charges and financial charges, as they are the only bank that charges this double fees.  I read the related Act and there are 12 in total, but nothing is indicated there that standard bank can charge double financial fees.  A credit card is a loan of sorts to advance you funds when required.   Your answer above does shed some light, but still does not explain why they charge the cash financial charges when the  credit card payment is activated by an online provider such as takealot, unisa, Loots, to name but a few.  I for several months did not use my credit card and was charged double fees being financial fees cnad cash financial fees during this period. Upon quering it with standard bank in Balfour, they told me to just accept it as it is, when I queried online I received a similar response.  My main point of contention is that banks are allowed to charge 1.2% pf the outstanding balance for interest (financial charges), then why are they allowed to charge a further 1.2% (cash financial charges) on same statement when the card was not used for cash withdrawals, transfers, or payments to beneficiaries.  THIS IS, IN MY UNDERSTANDING HIGHWAY ROBBERY, AS NO OTHER BANK CHARGES  double FEES IN THIS MANNER. 

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dawn66
New Contributor

Good day Anim8, I have been struggling to get answers out of standard bank regarding this cash finacial charges and financial charges, as they are the only bank that charges this double fees.  I read the related Act and there are 12 in total, but nothing is indicated there that standard bank can charge double financial fees.  A credit card is a loan of sorts to advance you funds when required.   Your answer above does shed some light, but still does not explain why they charge the cash financial charges when the  credit card payment is activated by an online provider such as takealot, unisa, Loots, to name but a few.  I for several months did not use my credit card and was charged double fees being financial fees cnad cash financial fees during this period. Upon quering it with standard bank in Balfour, they told me to just accept it as it is, when I queried online I received a similar response.  My main point of contention is that banks are allowed to charge 1.2% pf the outstanding balance for interest (financial charges), then why are they allowed to charge a further 1.2% (cash financial charges) on same statement when the card was not used for cash withdrawals, transfers, or payments to beneficiaries.  THIS IS, IN MY UNDERSTANDING HIGHWAY ROBBERY, AS NO OTHER BANK CHARGES  double FEES IN THIS MANNER. 

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G_Wood
Occasional Visitor

Can someone please help me? I'm being charged a cash finance charge on my credit card, even though I've never withdrawn cash with it.

How can this be fixed? And can I be refunded?

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Anim8
Occasional Contributor
SB considers transferring money from your CC to another account as a cash withdrawal (or using it as a cash wallet) - that is why you are being charged and you will be charged as long as you have a balance owing on the account. They charged me for more than 3 years.
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Community Coordinator

Hello @G_Wood,

 

I acknowledge receipt of your query and would like to explain to you why you are being charged this fee.  

 

 Please note that a credit card is meant for swipe and online transactions. The moment you turn it into hard cash by withdrawals, transfers and payments, then we charge you a Cash Finance Charge.

 

 This charge will appear on your statement every month until you settle the cash transaction you made.

 

Kind Regards,

Mandy

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