Originally Posted by
Soames
I have a rather hefty holiday rental to pay (nearly $20.000) but the agency doesn't take credit cards. I've asked my regular bank if I can by a draft from them in that amount, and use the AA card (issued by Scotia Bank) for payment. My bank manager said yes. (I would pay off the AA card/Scotia charge probably the same day).
This sound so good that I'm having a hard time believing it. Has anyone else done this?
Did you ask the bank manager how this transaction would be coded? Cash advance or regular purchase?
Theoretically, the bank can take credit card. Since a bank is not a merchant, the charges they process/accept may be coded with extra fee on your credit card.
I got my 1st Entertainment Book from my local credit union. I asked if I could use cc to pay ($25), they said yes. I didn't give any 2nd thought until I received my credit card statement. IIRC, I was dinged with cash advance on the $25. I was told since the bank is a financial institute and couldn't sell things like a merchant, the transaction was treated as cash advance.
If you are going to pay it off on the very same day, the charge probably won't trigger any interest. However, read through thoroughly the terms of your cc card and pay attention to the transaction fee (if any). To the best of my knowledge, the transaction fees (1-time charge) for cash advance are usually 2%-3%, some with no cap. (Meaning non-capped 3% of $20K = $600.)
