Banks deciding they don't want people to use Credit Cards as much anymore? (Letter from Bank)

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Forums › Finance and wealth management › Banks deciding they don't want people to use Credit Cards as much anymore? (Letter from Bank)

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#2815403 18-Nov-2021 18:57

gzt: I suspect Westpac could have made this change any old time and the letter is a courtesy.

I would expect such a change to be explicitly notified. I have never paid a cent of interest on my credit card and I'm not going to start.

gzt

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#2815404 18-Nov-2021 19:05

Looks like this is about reducing gambling harm:

CasinoGuardian: A spokesperson for Westpac shared that customers use the majority of quasi-cash transactions to fund their online gambling habits. As the bank’s representative explained, customers could avoid paying interest on such cash transactions by using their debit cards. The financial services provider further noted that the move was about creating more consistency for customers.

Apparently bans on all credit card payments specifically to gambling companies are being considered.

eracode

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#2815405 18-Nov-2021 19:07

SirHumphreyAppleby:

I would expect such a change to be explicitly notified. I have never paid a cent of interest on my credit card and I'm not going to start.

Yep, me too on the interest - and as I said in an earlier post “… will we know at the outset that a particular transaction is caught - or will we find out only when we see the monthly statement?“

Sometimes I just sit and think. Other times I just sit.

gzt

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#2815406 18-Nov-2021 19:13

SirHumphreyAppleby:
gzt: I suspect Westpac could have made this change any old time and the letter is a courtesy.
I would expect such a change to be explicitly notified. I have never paid a cent of interest on my credit card and I'm not going to start.

Well yes it has been notified and added to the terms and conditions fine print. Your conditions have been satisfied. Banks.

dacraka

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#2815409 18-Nov-2021 19:23

What the hell Westpac, that sucks ass. Glad I am not with Westpac.

SirHumphreyAppleby

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#2815411 18-Nov-2021 19:29

eracode:

Yep, me too on the interest - and as I said in an earlier post “… will we know at the outset that a particular transaction is caught - or will we find out only when we see the monthly statement?“

I'm sure you won't know until you get your statement.

If they're anything like ASB, it'll take at least two months to sort out. I have a lot of experience in this area :(

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#2815413 18-Nov-2021 19:46

SirHumphreyAppleby:

I'm sure you won't know until you get your statement.

If they're anything like ASB, it'll take at least two months to sort out. I have a lot of experience in this area :(

Surely bank customers are entitled to know in advance what fees and charges they are incurring - not be notified of them after the event. I foresee a lot of trouble if it works the way you indicate.

Sometimes I just sit and think. Other times I just sit.

shc

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#2841864 2-Jan-2022 14:00

It looks like Westpac has now listened to some of the concerns. Here is an additional paragraph included on its website on this subject:

"Examples of transactions that are not considered quasi-cash include, topping up travel cards or prepaid mobile phones, and making donations to charities." (https://www.westpac.co.nz/personal/life-money/managing-your-money/how-does-credit-card-interest-work/)

I would however agree that Westpac's definitions remain too broad ... "Quasi-cash transactions include but are not limited to, ... , (iii) topping up value on rechargeable gift cards or prepaid cards, ..." Arguably the Snapper card is a travel card and therefore topping up Snapper cards should now not be considered as quasi-cash. But Snapper cards are also prepaid cards so might still be caught by a different interpretation?

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#2841867 2-Jan-2022 14:09

Originally the term 'quasi-cash' was used to define a means where the cardholder could use a purchase to get fairly quick access to cash - for example top up your TAB account then withdraw your funds to your cheque account. I tried this with my Sharesies account and it worked well. The top-up is a purchase and I had cash through an ATM from my cheque account in hours.

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#2841869 2-Jan-2022 14:14

Do the merchants get charged the normal rate or the cash advance rate on the transaction? If Westpac are not giving the normal benefits of a card purchase of 40+ days no interest on it then it shouldn't be billed as such.

Richard rich.ms

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#2841871 2-Jan-2022 14:16

gzt: Looks like this is about reducing gambling harm:

CasinoGuardian: A spokesperson for Westpac shared that customers use the majority of quasi-cash transactions to fund their online gambling habits. As the bank’s representative explained, customers could avoid paying interest on such cash transactions by using their debit cards. The financial services provider further noted that the move was about creating more consistency for customers.

Apparently bans on all credit card payments specifically to gambling companies are being considered.

Where does it stop.? Banning CC for fast food, alcohol?

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#2841931 2-Jan-2022 15:13

Presumably when the number of people annoyed is greater than the number of people who think its reasonable....

I'm in the camp that days if you dont have the cleared funds you shouldn't be gambling...

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#2842031 2-Jan-2022 17:45

old3eyes:

Where does it stop.? Banning CC for fast food, alcohol?

No - because they’re not “a means where the cardholder could use the purchase to get fairly quick access to cash”.

Sometimes I just sit and think. Other times I just sit.

SirHumphreyAppleby

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#2842038 2-Jan-2022 18:16

eracode:

No - because they’re not “a means where the cardholder could use the purchase to get fairly quick access to cash”.

Want to bet on that?

A few more poorly thought out laws such as the current government's smoking policy will create plenty more opportunity to make a quick buck.

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#2842041 2-Jan-2022 18:34

SirHumphreyAppleby:

eracode:

No - because they’re not “a means where the cardholder could use the purchase to get fairly quick access to cash”.

Want to bet on that?

A few more poorly thought out laws such as the current government's smoking policy will create plenty more opportunity to make a quick buck.

If I pay for fast food and alcohol by CC, how am I going to quickly turn that into cash on a scale that would concern the banks?

So yes, I’ll take a bet that those transactions won’t be caught in this net.

I agree that it’s poorly thought out but Westpac’s policy does not “create more opportunity to make a quick buck”.

Sometimes I just sit and think. Other times I just sit.

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