What is the situation with the MCC for topup?

Maybe not odd for you…but I hope that I am still allowed to find it odd.

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I agree, and I don’t understand the kerfuffle here.

Just stating the obvious, but the money on your credit card is not your money, but the bank’s money. You really ought to not top-up using a credit card, just as you should not withdraw from an ATM with a credit card.

Only reason Revolut cannot outright block credit card topups is because PSD2 requires equal treatment of debit and credit cards of the same brand.

If you top-up using a credit card it equals worse service for everyone else who has to foot the bill/ more expensive fees - money that could have been used for something more productive.

In the long term, I hope that top ups will be removed, and that we will have instant transfers using domestic account details.

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I do understand why the top-up fees. So no kerfuffle from me about the fees because of a top-up (only a part of my sentence was quoted there). I was just a little ‘confused’ that apparently for some the fees come under the heading of “payment abroad” regardless of used currency, instead of a cash advance fee.

That would be an acceptable reason. It is just sad that you provide it, instead of Revolut.

It depends. In Latvia banks allow store your own money in to credit card account, there is even 1 bank which pays you interest for doing that. Also there is at least 2 banks in LV which allow you to withdraw cash from any ATM worldwide using their credit cards without any fees if currency exchange is not involved (there are limits of course).
I think banks want to promote credit card use becouse they get 0.3% from each transaction, not 0.2% like from debit card.

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This is a very common reason with Swiss cards clearly stated in the T&C. This also means, that they still don’t treat it as a cash advance but treat it like a purchase transaction of goods or services.

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@Revolut, can we have an official statement that the MCC has been changed? The banks in Romania are refusing revolut top-ups with a credit card for a few weeks now and stating that revolut has made the change. It was too expensive for revolut to absorb the CC fees or what is the logic behind this change?

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This problem seems to have been solved today during maintenance. I topped up my account this afternoon and my bank indicates a regular payment and not a cash advance.

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Ah so you are able to see it in your bank account transactions detail ? Are you able to see the MCC for transactions you made ?

Thx

another viewpoint: I’m the customer. I got used to some service and certain fees for these services.
If there’s a change I want to be notified and want to be in the situation to accept these changes or not (and close the account).
Doing such a change without prior notification makes me angry. Even more, if it generates me extra costs which was free up to now.

PSD2 is an EU directive and not a worldwide one. Opposing to that, Revolut is a global company. Thus revolut could have the chance to handle cards issued outside of the EU differently.

You’re right, your credit limit on a credit card is your bank’s money. And the bank gives it to you for any purpose (which is legal). You can buy gift cards. You can buy clothes. You can buy an experience with it. For your bank it shouldn’t matter how you spend that money because you’re moving within the box that is called terms&conditions of your credit card. And topping up a revolut card was within that box, as it was a purchase up to now. If you paid the money back until the deadline, it was fine, if not, you had to pay the interests. And most banks in Europe were OK with that and did not penalized the revolut card topup by changing the purchase to cash withdrawal on their side.
Thus these banks did not mean that using their credit cards for topup equaled to worse service to their other customers.
With this logic you could say that cashback is not equal because people who don’t use that feature have to pay the costs of others who use.
And with this login you could sat that using credit cards is not equal, as who’s not using it, should pay the bill for others.

Top-up using a registered card or using apple pay on an iphone is convenient enough. I do not need instant wire transfers. Moreover, think, when many-many banks covering half of the world will agree and commonly introduce instant wire transfers? Even in one country this is a project for years… So I believe this will never come true.

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Most credit cards put a lot of restrictions on what exactly the bank will allow you to use their money on. E.g. many credit cards place a restriction on gambling. Because, in the end, if you cannot pay back the interest, in the absence of any other solution, the bank ( = the bank’s customers = the public) must foot that bill. And banks, certainly European banks, have a lot of responsibility when it comes to lending responsibly.

I believe that exactly; cashback should be banned; because prices do rise and that at the expense of the poor, students, and other people of few means (who cannot get approved for a credit card). And EU has effectively banned it by placing a threshold on the wholesale interchange fee, which I am honestly very happy about.

Also, topping up is in reality a kind of quasi-spending or manufactured spending, which for natural reasons many credit cards disallow as well.

Debit cards on the other hand have lower fees, and it is your own money. So basically manufactured spending is not an issue. However, I see potential issues with money laundering.

So yes, I believe that from a regulatory perspective, it is both practical and natural that there be a fee on credit card top-ups, for the above reasons.

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I can’t see the MCC number on my bank account, but I can see that my Revolut top-up appears in my debit card payment limit as before and no longer in my cash withdrawal limit.

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Yes, it seems I can top-up Revolut with a credit card again. Thanks !

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What kind of card did you use for topping up - Visa or Master Card ?

I use a visa card to top up my Revolut account.

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ING Visa Credit Card.

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Now almost all or all credit card issuers in Canada process Revolut reloads as cash advance. This all happened last week.

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Because that’s what it is - if you use a credit card to top-up then it is cash advance. If you use a debit card then it shouldn’t be.

Yes and I’m ok with that. I’m also ok to do cash advances by prepaying the funding source (credit card) to avoid fees since it’s fast.

Today i had a chat in Revolut about this topic. Here are the answers i got.

I am sorry about that.
Unfortunately, we had to do these
changes requested by our partners.
We are working on finding a
resolution and I am hoping that it
won’t take long until we find it. For
the time being, I would advise you
to top-up your account via bank
transfers, Google or ApplePay.

I am afraid the change was not
planned so this is why we could
not inform our users about it. I
completely agree with you and I am
really sorry once again!
I am sorry to not be able to give
you an estimated timeframe,
however, this matter really needs
to be discussed with the proper
institutions, our partners, etc, in
order for us to be able to reach a
resolution and this can take time.
However, as soon as we find a
resolution, we should notify our
users beforehand.

Are Visa and/or MasterCard affected?

Unfortunately, both card partners
are affected. I am sorry for the
caused inconvenience and | am
hoping for a resolution in the near
future.

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