Cashback on Credit Cards


#1

You will love this.
Toping up Revolut with a cashback credit card 0.5-2%, as soon as the money hits the account you transfer the money to your bank account and pay off the credit card in full?


#2

Not allowed.
Terms and conditions,
Clause 19.1.R among others (plus your own common sense).


#3

As far as this is concerned of course it’s against ToS of both your credit card company (fair use policies!) As well as Revolut.

Would this even work from any standpoint though? I’d assume it’d be registered as a cash advance.


#4

I sadly know this actually works (also called Manufactured Spending), but I also know Revolut will notice it and sets your account on hold untill you talk with the support which will disable CC TopUp’s.

(That doesn’t happend to me)


#5

You are talking as an example 2000euro so about 5 transactions a month and for 0.5% you get 8eruo a month in casback.
All the answers are as if you get loads in cashback… :slight_smile: it is a tiny amount to say the least.


#6

It is a smaller amount for certain, but it is free money simply for opting one card over the other.

EU regulations set max fee for creditcards to 0.3% and debitcards to 0.2%. If all of :r: customers used creditcards for topups it would be 50% more expensive for revolut. It is a matter that is hard to resolve and should grow worse as more and more users discover it.

Maybe in the long run :r: could decline creditcard top up?


#7

There are small amounts.
People are coming to R because it is cheaper than transferwise or transfer go to wire money.
And they transfer millions per day, credit cards represent less than 5% of the total transactions??? if we can gt some numbers from you. Swede


#8

I think you miss understood what i mean,

EU regulations set down max fee for debitcards 0.2% but for creditcards the same fee is allowed to be 0.3% - 50% higher and that is money taken from revolut with each top up by card.

If people use revolut card but top up their account with creditcards it should over time become quite expensive compared to SEPA/swift.

I top up using credit card myself since it is more favourable than my regular debit card. Granted it will be only a few euros per month but it is free money so why should i not do it?


#9

Agreed.

further clarification on my statement:
You said that if everybody will top up by credit card Revolut will be more expnsive, I answered that I think top up by CC are 5% of total transactions per day by revoulut about 95% should be bank transfers etc.
So on the long term it would not be more expeinsve because of this as it is a neglijable amount compared to the total transactions that are done per day using debit cards and transfers.
:slight_smile:

And Revolut is cheaper than Transfer Wise etc. so people working in other countires can send money through Revolut as it is cheaper.
:slight_smile:

Have a happy new year!


#10

The rules laid down by the EU are quite new so i suspect the amount of CC top ups will rise quickly now that the fee of 1% has been removed combined with incentives to use CC’s by cashback.

In the long run this could potentially become quite the money drain with milions of users.

A great new year to you aswell as everyone else on the forum!


#11

Does this not go through as a cash advance on your credit card?


#12

No, i even tried 2 different cards. If i put €100 on revolut it usually costs me around €99 in the end but it probably costs revolut €100.3 given that the max fee for CC´s within the Eu is 0.3%.


#13

Does it cost you 99 Euros because of cashback?

I’ve seen similar discussions with Starling and Monzo topups via a Curve card, but I’ve never heard of direct topups with a credit card actually working as purchases, not cash


#14

Exactly, no it shows up as any other payment for goods or services!

It used to cost 1% to topup using CC but now it doesnt cost anything it could very quickly become a money drain to :r:.


#15

I top up with 100 and I get 100 on Revolut, and the credit card sees it as a purchase and they give me 0.05% in cashback at the end of the month.


#16

No it does not. Thank you


#17

I can’t see it such of a big drain!
Why do you say that how many customers do they have and how many do they top up with credit card

We need numbers


#18

More than 3 million and rising by more than 10 000 a day! It’s wonderful that :r: is so popular and grows but it used to be that topping up using a CC cost 1%, not so since about a year due to eu regulations.

Users have zero incentive to use their debit cards or bank transfers for topping up but most of us do get a small bonus for using the creditcard. In time hundreds of thousands of users will realise this.


#19

It’s instant, unlike transfers to Revolut which take hours. If they could swap to Faster Payments and SEPA Instant I would happily swap to a recurring payment to Revolut via my bank account.

cc: @AndreasK


#20

Monzo: stopped all top ups by card and severely restricts how much can be paid using monzo.me

Starling: has said they will stop card top ups

All because they are too expensive.

Revolut is probably just keeping this until the faster payment methods are available