Question


dankman

Credit card used as a debit card?

I used a credit card for a purchase because I feared I would run into some shady issues with the business I was dealing with and wanted the extra consumer protection that comes with using my card. They ran my card through a reader, printed a receipt that I signed and, everything seemed OK; until I got my statement. Upon checking my statement I had a finance charge for a cash advance, it turns out the business I was dealing with treated my credit card as a debit card (my credit card company treats debit purchases as a cash advance) but I never entered a pin and signed a typical credit card receipt. The finance charge caused my card to be overdrawn so my credit card company charged me an extra $36 for going past my limit. Is it legal for a business to use a credit card as a debit card without having the card holder enter a pin # and not informing them of how they are going to pull funds from the account? If so or not can you please supply a link so I have a decent reference? Thanks for your help, it is appreciated.

6 months ago - 2 answers

Best Answer

Chosen by Asker

Lousy of the merchant, but your focus needs to be your CC company. Call your card company and ask them to reverse the charge for cash advance as well as the $36 over limit charge, which only occurred due to their cash advance fee. Be nice and friendly but persistent. You had every reason to believe that your credit card would be treated as just that since all debit cards are clearly marked as such on the front to distinguish them from credit cards. You were also presented with a slip to sign rather than being asked to enter a PIN number as you would with a debit transaction. The merchant is at fault as they never advised you that they would run the transaction on a credit card as if it were a debit purchase and of course, you are fully aware of the charges related to cash advances. As I said, be nice but persistent and let them know that you've had a good experience with their credit card program and you'd hate to have to END it because of a matter like this. You simply weren't at fault here. This will likely work better if you pay off some (or all) of that balance before you call, but don't wait on this. You need to act now. This approach will often work, especially if you've had the card for a while and do not have a history of late payments. They'd lose more money from you if you paid off the card and closed it than if they waived the charges. If you're a good customer, they don't want to lose you over a trivial amount. If you get no help from the customer service rep, ask if they have a "customer retention department" that he/she can transfer you to. That alone may change minds or get you up to a supervisor.

by jle4044

6 months ago

Asker's Rating: 

Other Answers

I would think that, while this will require much polite diligence on your part, you can protest this and win. But like I said, you will probably have to exercise great patience, and be willing to be shifted around between several different "hold please" personnel. You did not give your permission, no PIN was used, and you have clearly been screwed. Good luck on this one.

by pearlene29- 6 months ago