Credit Card T's & C's changing for buying gold/silver

[Paul]

Hi All 

Just got my latest credit card statement through for the month and notice announcement that looks like it may apply for purchasing gold/silver  

Photo attached below, but will type out also for those viewing on phones

" Changes to Cash transaction types

From 15th October 2021, certain cash-like transactions will be treated as cash transactions instead of Card purchases:

• Sending money order or wire transfers (other than balance transfers or money transfers).
• Buying coins, bank notes or digital currency
• Paying government or court fines, enforcement penalties, fees or costs
• Online trading such as share dealing or investments
• Purchasing or topping up electronic money, payment cards, mobile wallets or account dashboard services

We may charge you a cash fee for making them

You'll no longer earn cashback on these if you do now

See statement Summary Box for fees and charges applicable to your account "

 

These changes are on my Bank of Scotland credit card, but as it falls under the Lloyds banking group the likes of Lloyds, Halifax, and MBNA i would assume these changes will. 

Normally when big changes like this happen, the other providers follow suit 

 

Shame for this to happen, i used to like building IHG mastercard points for a free break away each year buying my bullion, fuel & shopping with my credit card, also could fund an in demand Royal Mint 2oz gold or Queens Beast gold completers using my credit card and then spreading the costs of them over a year with a balance transfer 

Looks like the beloved bank are trying to sap more sweat & fees from the great unwashed who used their services  

Although it doesn't reference gold/precious metals specifically, i am 90% sure it probably will 

Anyone know for sure if it will apply to buying gold/silver ? work inside bank/credit card company ??

[Paul]

Also interesting about paying for fines & enforcement penalties - the very unexpected "emergency" who you could genuinely need to use a credit card, you'll get stung 20%+ APR from Day 1 on top of the fine - bankers are so caring aren't they   

[modofantasma]

Some of the dealers also sell jewellery... Do the sellers report a different code to the card companies if you bought bullion instead of a necklace for eg? 

[sovereignsteve]

14 minutes ago, modofantasma said:

Some of the dealers also sell jewellery... Do the sellers report a different code to the card companies if you bought bullion instead of a necklace for eg? 

would need to ask a coin, bullion and jewellery dealer such as @ChardsCoinandBullionDealer

[Coverte]

40 minutes ago, sovereignsteve said:

would need to ask a coin, bullion and jewellery dealer such as @ChardsCoinandBullionDealer

 

They don't take credit cards and haven't for some years.

Undestandable and most others don't either, the fees for a CC vs a DC are massively different and it hasn't been legal to charge a surcharge for CC since 2017/8 ish.

You need pretty big margins and/or turn over enough money to even try and negotiate lower fees, as a seller, plus the banks have to recoup all the charge-backs losses, fraud compensation etc somehow .... 

I do get the OP point though as I get a nice yearly cashback on my CC, I suspect it started with crypto and they just threw in coins etc later, the banks want to keep your fiat money and give you little to nothing, but what they like most now, once again, is lending you money - which is exactly how and why world economies almost collapsed before, credit, and debt - history always repeats, keep on stacking and anything physical, especially land  .......

[pricha]

Thanks for the warning . I often get updates to credit/bank cards and never read them .  I buy from Royal mint on a credit card . I'll be a bit more careful now. 

[modofantasma]

Yeh there are a few dealers that accept cc. The cc companies have an interest in reducing the opportunities for MS and of course ML

[misterchippie]

I got the same notification from my MBNA card.

[Uksilverstackers]

Could buy bars instead of RM coins, but could then be subject CGT if in UK.

[Stacktastic]

I bet they are miffed as a lot of people have probably been making well over thier stupidly high fees with Crypto, stock investing & gold (last year anyway).
Imagine borrowing at 15% and making 1000% on Cardano or Eth. especially if you have an interest free period. 

I certainly wish I could dial back the clocks an leverage myself up, but it was and still is too risky for me, especially with variable rates. 

[Mikew140]

I just checked my statement from Lloyds and the same also applies.

it’s lucky I came across this thread (never read statements or changes🤦‍♂️) And always use my credit cards for all my gold purchases and pay off in full each month.

2021 1oz type ll gold eagle yesterday. 😍

so if I buy another next month on my credit card, will I be charged a fee for doing so and interest instantly? 

 

 

[Mtaybar]

1 hour ago, Mikew140 said:

I just checked my statement from Lloyds and the same also applies.

it’s lucky I came across this thread (never read statements or changes🤦‍♂️) And always use my credit cards for all my gold purchases and pay off in full each month.

2021 1oz type ll gold eagle yesterday. 😍

so if I buy another next month on my credit card, will I be charged a fee for doing so and interest instantly? 

 

 

1 hour ago, Mikew140 said:

I just checked my statement from Lloyds and the same also applies.

it’s lucky I came across this thread (never read statements or changes🤦‍♂️) And always use my credit cards for all my gold purchases and pay off in full each month.

2021 1oz type ll gold eagle yesterday. 😍

so if I buy another next month on my credit card, will I be charged a fee for doing so and interest instantly? 

 

 

 

Just now, Mtaybar said:

 

Thanks for the heads up.... I need to check this out. 

[ady]

I don't know about credit cards but my banks have been very interested when I have made purchases and trying to make me jump through hoops and asking lots of questions.. Many a TSF member has been delayed payment for checks they have to make on me spending on the account balance which is quite embarrassing when the funds are in the account.

[Mtaybar]

I've had no issues using my credit card to by from UK bullion dealers so far although it's not been large amounts. I use my cc to order gold because it's 0% interest and it's more then I spend on my debit card in one go. I think my debit card would have a lower spending cap then my cc would. Also a cc offers more protection then a debit card does. I'll be less able to buy bulk discounted offers if I'm charged to use my cc and the interest rate is charged at standard rate regardless of the deal I have. Definitely one to look into. 

[Paul]

I am still not 100% sure the cc charging will apply to bulliion purchases, it just sounds very much like it will. Need someone to test a 1oz silver coin purchase see what it's charged at 

[arcticfox]

Just had a look at mine "Santander" and nothing on there. Wonder if different due to being  spanish bank ?

[StackemHigh]

Nothing on my CB accounts i wonder about virgin money? A recent change!

[Coverte]

On 07/09/2021 at 02:46, misterchippie said:

I got the same notification from my MBNA card.

 

On 17/09/2021 at 19:03, Mikew140 said:

I just checked my statement from Lloyds and the same also applies.

it’s lucky I came across this thread (never read statements or changes🤦‍♂️) And always use my credit cards for all my gold purchases and pay off in full each month.

2021 1oz type ll gold eagle yesterday. 😍

so if I buy another next month on my credit card, will I be charged a fee for doing so and interest instantly? 

 

 

 

Lloyds have taken over MBNA former UK credit card division, so now both T&C's are identical - FWIW - I'm cancelling my MBNA card therefore as too many credit cards all with big spending caps has a negative effect on your credit score, no matter how fast you clear the payment - ie: clear/pay balance in full monthly, as I assume most here do.