28° Mastercard Cash Advances while overseas [No more free cash advances from 1/1/14]

[awilcockson]

It is amazing this little scam has lasted this long without more cards being cancelled....

Since when is it a scam?

When I signed up for the card it was part of the advertising that there was no fees on international cash withdrawals if the card was in credit. You can't advertise a benefit then penalise people for using it.

Besides they still make plenty out of me. I might take $1K or $2K a year out as international cash advances, but I'd put more than 5 times that through as international credit transactions (where they'd get their nice little fee).

 

[Chicken]

Since when is it a scam?

When I signed up for the card it was part of the advertising that there was no fees on international cash withdrawals if the card was in credit.

If you check the ad again, I think you will find that they say no fee for international transactions, cash withdrawals, purchases, but it never mentioned transactions when in credit.

Have a look at the ad.

 

[awilcockson]

If you check the ad again, I think you will find that they say no fee for international transactions, cash withdrawals, purchases, but it never mentioned transactions when in credit.

Have a look at the ad.

I've had my card for years, it started as a wizard MasterCard and the ads back then did talk about no interest when card in credit.

 

[JohnK]

Since when is it a scam?

Andrew! It is a credit card not a debit card for people to get fee free cash withdrawals overseas.

Any wonder why I was paying close to 20% interest on this card until recently?

 

[anchew]

What I usually do is make the cash advance at an o/s ATM, then log in online and see how much the available credit has dropped from the credit limit, then bpay that amount. Have never been charged interest yet.

 

[Must...Fly!]

Besides they still make plenty out of me. I might take $1K or $2K a year out as international cash advances, but I'd put more than 5 times that through as international credit transactions (where they'd get their nice little fee).

+1, basically everything in foreign currency goes through our 28 deg account.

 

[kpc]

In 2006 when I joined Wizard mastercard, I rang the call centre to ask whether there were any fees / interest charges if I put the card in credit, and then withdrew foreign cash from my own credit, I was specifically told "no" and thar was a "smart thing to do". Things obviously are different now...
A colleague at work recently applied for the 28 degrees card after my recommendation, and he had to specifically accept the Ts & Cs that he not put the card into credit and use it as a debit card

 

[lovetravellingoz]

Andrew! It is a credit card not a debit card for people to get fee free cash withdrawals overseas.

Any wonder why I was paying close to 20% interest on this card until recently?

Very high interest rates on credit cards has little to do with your point, and everything to do with the profile of people willing to pay such high interests rates.

Basically the CC companies have realised that many many people are more than happy to:
1/ pay such high interest rates
2/ to do so for long periods of time


So because they can, and many punters are willing to pay....they do.

 

[JohnK]

So because they can, and many punters are willing to pay....they do.

And people should just get over the fact that GE Money/28 degrees does not want people using this card as a debit card and GE Money has every right to stop people from using the card in this way.

And by the way this card had a low(er) interest on recurring debt until recently. But it is too easy to make money off people who are in debt. Just like it is too easy to make money from people addicted to poker machines....

 

[tgh]

It has been a great ride while it lasted, but over (ab???) use of the facility, and the very public social media discussions , probably mean the end is nigh

Hopefully small time trangressors such as moi .. who micro manage the process to minimise peaks and hollows will continue to be....tolerated

IF not well thanks for the ride and rip golden goose

 

[Baysider]

When I signed up for the card it was part of the advertising that there was no fees on international cash withdrawals if the card was in credit. You can't advertise a benefit then penalise people for using it.

The card home page is titled Travel Card with No International Fees - 28 Degrees MasterCard and goes on to state in large type right at the top "No international transaction fees. No matter where you are". It's the card's major selling point.

The "scam" is that we all put the card into credit and withdraw foreign cash for free. The Ts & Cs for all credit cards forbid them from being put into credit.

 

[cove]

It works so go with the flow.

 

[kpc]

It works so go with the flow.

Agree. There are always other options if it no longer does. Eg Citibank plus account

 

[MEL_Traveller]

The card home page is titled Travel Card with No International Fees - 28 Degrees MasterCard and goes on to state in large type right at the top "No international transaction fees. No matter where you are". It's the card's major selling point.

The "scam" is that we all put the card into credit and withdraw foreign cash for free. The Ts & Cs for all credit cards forbid them from being put into credit.

As others have said, even if you don't have your card in credit, there is no interest charged if you transfer the money in a timely manner.

In fact it goes further than that. You gain a whole lot more interest on your money if you only need to transfer it as needed.

$5000 in the bank earns just under a dollar a day interest. If you leave it there for a week you get $5.80.

Taking out $1000 on your credit card and paying it the next day (accruing one day's interest) will only set you back 57c.

That's a 'profit' to you of $5.

The profit is even greater because transferring money to cover the cash advances allows you to let purchases accrue for up to 55 days, and the money accrues interest in the bank.

Putting your account in credit only eats from the credit you have put there.

The true golden goose is earning interest and not having to pay cash advance fees... not simply having the card in credit.

 

[addyoni]

As others have said, even if you don't have your card in credit, there is no interest charged if you transfer the money in a timely manner.

In fact it goes further than that. You gain a whole lot more interest on your money if you only need to transfer it as needed.

$5000 in the bank earns just under a dollar a day interest. If you leave it there for a week you get $5.80.

Taking out $1000 on your credit card and paying it the next day (accruing one day's interest) will only set you back 57c.

That's a 'profit' to you of $5.

The profit is even greater because transferring money to cover the cash advances allows you to let purchases accrue for up to 55 days, and the money accrues interest in the bank.

Putting your account in credit only eats from the credit you have put there.

The true golden goose is earning interest and not having to pay cash advance fees... not simply having the card in credit.

I've thought of that. I've wanted to increase my credit limit just so I can do that all online. Did you mean $1000 into the bank? If you've got 44 or 55 day interest free period on card, then earn interest in bank for more than a month and a half or nearly two months. Set up your own BPay and do direct debit with Amex to get 1,000 points as bonus each time. Oh wait, never mind that, it's only with select partners like utility and phone companies.

 

[PLANT]

Anyone had issues in CHINA of using card?
Just got told that person I been talking about...card not working in CHINA for purchase of goods?
WTF!
Told em to ring number on card and findout what THE F'IN going on!
Yes he had told them world wide traveller and use!

 

[oz_mark]

Anyone had issues in CHINA of using card?
Just got told that person I been talking about...card not working in CHINA for purchase of goods?
WTF!
Told em to ring number on card and findout what THE F'IN going on!

I've not had a 28 degrees card, but my experience with GE Money with other cards is that they are quite quick on the Suspend trigger using the card overseas.

 

[anchew]

I'm currently in China and had no issues with withdrawing money from the ATMs. I did first notify them that I was travelling overseas though.

 

[Baysider]

I've not had a 28 degrees card, but my experience with GE Money with other cards is that they are quite quick on the Suspend trigger using the card overseas.

Yes, its been discussed quite regularly here that you must advise them in advance where you will be travelling to and for how long.

 

[Cynicor]

While probably a sound piece of advice, I still have 1 card that has been several k in credit for 2 years and in continuous use overseas without informing GE. It got back to au only Tuesday in fact. My other card (diff account) is also overseas regularly and we have never told them, not has it been suspended. I don't know why my profile would be any different to others and not triggering suspends. I will let you know if they decide to lock it one day!