View Full Version : credit card cheques
tezz7628
28-08-2004, 09:48
john
have you heard of, and do you accept, payment by this facility
the credit card companies sometimes send them to out to pay for goods, like an ordinary paper cheque, to avoid credit card charges
Hi tezz, we get sent them every so often from our credit card co. but have never used them. You would avoid credit card charges on the transaction itself (i.e villa rental) but I know our CC treats them as a cash transaction and as such charges the same rate as a cash withdrawl, meaning a higher interest rate on repayments.
I would have no hesitation accepting one as payment as they are banked and cashed exactly the same way as an ordinary cheque, assuming you have the amount available on your card.
Hope that helps :)
tezz7628
28-08-2004, 10:18
i pay mine off at the end of every month so hopefully wouldnt effect me
used them last oct to pay for some park tickets didnt notice the cash advance charge but will cheque :) and get back to you
Tezz, I have had one of my best customers use these for both his vacation. I have no problem cashing them like a real check.
I had one client from the Midwest use them and I did remind her that the interest starts from when I cash it- not the end of the month like a charge.
andrewmckay5
28-08-2004, 16:38
Tezz,
I've accepted in the UK with no problem for rental payment on our villa,
andrew
Please note though that they are exempt from the cc act 75 in that if something goes wrong with the goods or services you are not covered as you would be by using your credit card. It is treated differently under the terms of the act it is in the small print!!!!!!!!
Tezz, as soon as the cheque has cleared you will start incurring interest charges whether you pay off the amount in full every month or not.
Cruella DeVilla
10-09-2004, 20:17
Presume it is the same conditions as paying by CC it is just for convenience when you want to pay by credit but cannot use your card. Never had a need to use them, just as well really as I shred ours when they come in!!! Guess they would come in handy for paying for the rental of villas though. Deviating slighty, I am one of the many people that have faith in using your cc over the net b ut somepeople may be happier to send the cheques....hope that makes sense.
jolliffee
13-09-2004, 14:25
Hey! Monies money.[msnsmile2]
I have accepted these as payment. I think it may depend on the bank which has issued them as to if interest is accrued from when they are cashed or not.
They are definitely not subject to the same rules as a CC. The cheques are treated as a cash advance and as such the cover available when you use a CC if goods or services do not come up to expectation does not apply.
If for example you paid for a holiday and the company went bust the CC company would not be liable to pay you out as they would if you paid by CC.
I have been caught out by this rule when the cheques first came out, we did win in the end but it was only because they were new, now the clauses are in the literature that comes withthe cheques.
Cruella DeVilla
14-09-2004, 15:37
<blockquote id="quote" class="ffs">quote:Originally posted by poet123
They are definitely not subject to the same rules as a CC. The cheques are treated as a cash advance and as such the cover available when you use a CC if goods or services do not come up to expectation does not apply.
If for example you paid for a holiday and the company went bust the CC company would not be liable to pay you out as they would if you paid by CC.
I have been caught out by this rule when the cheques first came out, we did win in the end but it was only because they were new, now the clauses are in the literature that comes withthe cheques.
[/quote]
Sounds like a big con, cash advances on a credit card are not a good idea unless you can pay the whole credit card balance off at the end of the month.
The point is about cash advances on a credit card are that the interest starts racking up from the day you get the cash advance so, even if you paid it off at the end of the month, you'd still get interest charged.