Checkmyfile is warning UK consumers to check their credit card provider's small print before using a credit card to bet online.
Richard Goedegebuur, from the leading credit check website, says consumers face losing their shirt on credit card fees as well as on the horses since a number of credit card firms have targeted fees at online gambling transactions.
He also advises that consumers may be better off using their debit card instead.
Recent changes to some credit card terms and conditions have seen the use of credit cards on internet gambling sites labelled as a 'cash advance.'
Richard adds, “One of our customers recently pointed out that Egg had changed its terms and conditions on its credit card. It notified customers by wedging the crucial change about fees for online gambling transactions between a number of very dull bullet points in a terms and conditions update letter.”
Consumers whose credit card provider treats internet gambling transactions as a cash advance will not get the same interest free period that they enjoy if they pay off their credit card balance in full. They will also be charged at a significantly higher interest rate than the card's purchase rate. For Egg credit card users that is a difference of 8 per cent from the moment the transaction is made. For most cards, cash advances carry a fee, typically 2 to 3 per cent of the transaction with a minimum of up to £3.
“Consumers placing bets online with a credit card should check their credit card statement carefully for these charges, and switch to a new card if they find any. There is a strong possibility they could get a much better deal by switching cards or simply by using a debit card instead.”
Consumers can get their credit card frustrations off their chest by completing the checkmyfile annual banking and credit card survey. It takes just a couple of minutes to fill out and you could win a new 3G iPhone on 02 Pay & Go or a Sony 32” flat screen TV.
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checkmyfile is fully independent and was the first in the UK to provide consumers with online access to their credit files, to offer consumers the ability to check their own credit score for free, to give plain English explanations of how credit scoring works and to help consumers protect themselves from identity theft.
It has 1.5m registered customers and is visited by over 20,000 unique new visitors every day.
