What payments count as cash transaction when paid by credit card?

diarmid · Apprentice Joined: 13 Jan 2006 Posts: 5

I recently opened a credit card. Last week I had an argue with one of my neighbors. He told me that he paid some transactions with his credit card couple of days ago. He claimed that bank charged him as those were cash transactions. I could not believe that. Is that possible? Are there payments that counts as cash transaction when paid by credit card?

trevar · Apprentice Joined: 13 Aug 2005 Posts: 6

Your neighbor is probably right. There are some transactions that count as cash transactions if paid by credit card. Those are mostly billings. If you pay your heating bills, electricity bills, or gas bills with your credit card, bank would most certainly charge those as cash transaction. The fees would be the same as you redraw cash from your credit card and use it to pay your bills. That will also apply to paying all government fees and taxes. So be careful for what you are using your credit card. There are also some credit cards that wouldn't charge you those fees. In that case, that would be certainly underlined in their offer.

What payments count as cash transaction when paid by credit card?

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