Credit Cards

Costco Capital One Mastercard - Cash Advance Fee for lottery purchase.

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  • Jan 6th, 2018 11:41 pm
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[OP]
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Costco Capital One Mastercard - Cash Advance Fee for lottery purchase.

My wife bought a lottery ticket with our Costco Capital One Mastercard the other day and we were charged for a Cash Advance, I've called in and tried to get them to reverse it and the offshore call centre person wouldn't budge, they transferred me to a Canadian call centre rep and they agreed that it was insane and said to call back tomorrow and talk to a supervisor. Now I've read the fine print and noticed that this is apparently a thing, and I won't be buying lottery tickets at the kiosk anymore! I've also bought tickets at a similar kiosk and they were not billed as a cash advance. I understand the theory - I could buy chips at a casino with credit card, cash them out and get a super cheap cash loan, but applying a $5 fee and interest to a $6 purchase really makes me think twice about this whole card.

I'm hoping they'll be able to reverse it as a one time deal and since it's not applied equally. Anyone have any luck dealing with Capital One? The call centre folks are a little obtuse at times!
Last edited by lennyandcarl on Jan 3rd, 2018 11:54 pm, edited 2 times in total.
12 replies
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Dec 6, 2002
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lennyandcarl wrote: My wife bought a lottery ticket with our Costco Capital One Mastercard the other day and we were charged for a Cash Advance, I've called in and tried to get them to reverse it and the offshore call centre person wouldn't budge, they transferred me to a Canadian call centre rep and they agreed that it was insane and said to call back tomorrow and talk to a supervisor. Now I've read the fine print and noticed that this is apparently a thing, and I won't be buying lottery tickets at the kiosk anymore! I've also bought tickets at a similar kiosk and they were not billed as a cash advance. I understand the theory - I could buy chips at a casino with credit card, cash them out and get a super cheap cash loan, but applying a $5 fee and interest to a $6 purchase really makes me think twice about this whole card.

I'm hoping they'll be able to reverse it as a one time deal and since it's not applied equally. Anyone have any luck dealing with Capital One? The call centre folks are a little obtuse at times!
Lottery tickets at Lotto Booths/Kiosks are generally treated as cash advances - the vendor isn't willing to pay the 2.5% transaction fee and gets a much lower rate this way. Buy your tickets at Shoppers, 7-11, etc.

Ron.
[OP]
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newfbc wrote: Lottery tickets at Lotto Booths/Kiosks are generally treated as cash advances - the vendor isn't willing to pay the 2.5% transaction fee and gets a much lower rate this way. Buy your tickets at Shoppers, 7-11, etc.

Ron.
That is makes sense, but it's still pretty crazy to charge a $5 fee on a $6 purchase.

The BCLC kiosk at the local Walmart doesn't charge the fee but the one across the road at Save On does. I'm amazed it applies to anything outside a Casino to be honest!
Member
Oct 26, 2016
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lennyandcarl wrote: That is makes sense, but it's still pretty crazy to charge a $5 fee on a $6 purchase.

The BCLC kiosk at the local Walmart doesn't charge the fee but the one across the road at Save On does. I'm amazed it applies to anything outside a Casino to be honest!
It's very dependent on location, I've been to plenty of places (such as some Gateway Newstands) where they completely refuse credit cards for lottery tickets, you HAVE to pay with debit or cash. I just stick to Shoppers Drugmart or gas stations now (especially since they qualify for the category bonus on multiple credit cards).
[OP]
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Kiraly wrote: Of course. Why throw $11 away when you could only be throwing $6 away.
I'll let my wife know your feelings!

Good news, they refunded the charge and the interest. They didn't let me speak to a supervisor but the third person I talked to happily refunded it.

We're all good!
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Jan 27, 2004
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T.O. Lotto Captain
lennyandcarl wrote: That is makes sense, but it's still pretty crazy to charge a $5 fee on a $6 purchase.

The BCLC kiosk at the local Walmart doesn't charge the fee but the one across the road at Save On does. I'm amazed it applies to anything outside a Casino to be honest!
If it makes you feel any better...
The kiosk has to pay 3-5% to accept credit cards.
Their profit margin on lotto tickets is about 2-3%
They lose money on this...
Buy from a gas station. No fees there.
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UrbanPoet wrote: If it makes you feel any better...
The kiosk has to pay 3-5% to accept credit cards.
Their profit margin on lotto tickets is about 2-3%
They lose money on this...
Buy from a gas station. No fees there.
I'm kind of amazed that they would take credit cards!
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Mar 25, 2005
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All cards charge cash advance fees for near cash transactions.

You are charged if the merchant is setup as a lotto retailer. At places like Sdm and gas stations, the terminal is drug or gas store.
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Kasakato wrote: All cards charge cash advance fees for near cash transactions.

You are charged if the merchant is setup as a lotto retailer. At places like Sdm and gas stations, the terminal is drug or gas store.
I run a lotto pool that buys about $1k@a time.
Helps me rack up cc points. But they only let me swipe the first $150.
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UrbanPoet wrote: I run a lotto pool that buys about $1k@a time.
Helps me rack up cc points. But they only let me swipe the first $150.
That’s garbage, go somewhere else. And that 2-3% someone told you is BS. Retailers in ON make 5% on sales so if they are coded as a convenience store, drugstore or gas station they still do fine when you use your CC.
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Aug 24, 2017
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Wish I knew all of this before I stupidly ordered 728$ on a subscription to western canada lotto and was charged 10% as a cash advance fee. :-( Thought id get rebates and offered to purchase the subscription for myself and work colleagues. We will win now..right? Lol.

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