Barclaycard redefining how words work

I currently have a credit card with Barclaycard. I never use it for any purchases or withdrawals or anything, but I have it there in case I need it.

Today they sent me an email containing some changes to their terms and condition. I was going to delete it, but curiosity made me read it instead. I found the following change to be very interesting:

Barclaycard Balances and Payments (Condition 3.1)
Previously Cash-Like Transactions and Gaming Transactions were treated as Purchases. These Transactions will now be treated as Cash and we’ll charge a Transaction Fee and interest at the Cash Rate.
For clarity:-

Cash-Like Transactions include the sending of money orders or wire transfers.
Gaming Transactions include gambling, betting and other transactions relating to gaming, such as the purchases of lottery tickets or gaming chips or purchases made at gambling establishments or on websites.

So they’re basically making some purchases count as cash instead of purchases because cash generally has a much higher rate of interest on it. Their wording of the Gaming Transactions section is a bit bizarre though. At the start of the update they’re saying how they’re cash-like payments. They then go on to say “such as the purchases of lottery tickets or gaming chips or purchases made […]”

I’m not really sure how they can say that something they define as being a purchase is actually a cash withdrawal, and then charge people for it.

2 thoughts on “Barclaycard redefining how words work

  1. It’s because currently they are being mugged off – don’t forget you can borrow “interest free” on standard credit card purchases for up to 56 days. So, today you can load your online gaming account with £1000, immediately withdraw the money to your savings account, pay your credit card in full in 56 days time – and you’ve earned free interest at Barclaycard’s expense

  2. That’s an interesting scheme. Interest rates on regular accounts are so low that £1000 for 56 days is hardly worth the effort. Admittedly you can do it repeatedly, but it’s not exactly enough to live on. I suppose higher credit limits make it more and more worth-while.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.