LatitudePay doesn’t have any fees for customers that pay on time, and only a $10 fee for late payments. Frustratingly, the bank that issued your card sometimes charges cash advance fees related to our plans.
Why is this happening?
- A number called a Merchant Category Code (MCC) is assigned to any payment charged through Visa or Mastercard. MCCs help financial institutions categorise the kind of payment they’re processing.
- When you pay your weekly instalment, our MCC is passed on to your bank which indicates that your payment is a payment to a financial institution.
- Once the MCC we’ve assigned reaches your bank, they can choose how to charge for it and some banks charge a fee for certain MCCs.
If your bank is interpreting your payment as a ‘cash advance’ or ‘cash withdrawal’ then this usually comes with an extra charge. It’s totally at the discretion of the bank that’s issued your card.
Tip: Call your bank and check how they charge for the MCC assigned to your payment. If they’ve charged it as a cash advance or cash withdrawal, ask them why and explain that the payment was not cash-related. They may be able to help.