Just got off the 'phone to my bank querying small interest payments on my credit card statement, something I had not noticed before and looking back I find interest has been charged monthly since August yet I religiously pay off the balance in full every month.
It turns out that the several small payments I have made using Paypal, (******, Ebay etc) are charged as a cash advance on my credit card, cash advances have no grace period and interest is charged immediately. I like the anonimity and checkout convenience of Paypal but didn't realise the cash advance side of things - if I had purchased a large item, eg £599 TV from ****** for instance using the Paypal option at checkout I'd be paying cash interest on £599 from that date, just something to be aware of.
It didn't happen when I had a cash balance on my Paypal account and I don't think it will happen if your PP account is linked to a bank account direct, or a debit card, but if linked to a credit card you'll be looking at immediate cash advance interest rates at point of purchase, something I didn't know.
It turns out that the several small payments I have made using Paypal, (******, Ebay etc) are charged as a cash advance on my credit card, cash advances have no grace period and interest is charged immediately. I like the anonimity and checkout convenience of Paypal but didn't realise the cash advance side of things - if I had purchased a large item, eg £599 TV from ****** for instance using the Paypal option at checkout I'd be paying cash interest on £599 from that date, just something to be aware of.
It didn't happen when I had a cash balance on my Paypal account and I don't think it will happen if your PP account is linked to a bank account direct, or a debit card, but if linked to a credit card you'll be looking at immediate cash advance interest rates at point of purchase, something I didn't know.
