Credit card companies charging interest on lotto tickets

When going through her credit card statement this month, Jennifer Wile received an unsettling surprise.

She saw cash advance charges on her bill, she swears she never made. “I thought that it was strange, I never get a cash advance out on my credit card,” she said.

She contacted her credit card company, RBC Visa, to get to the bottom of the charges.

“They told me that whenever I purchase a lottery ticket on my card I’m going to get this cash advance fee, and I thought that’s strange, you’re not taking out money at all.”

Since 2008, the Western Canada Lottery Corporation said credit card companies have been classifying lottery purchases as “gambling”, charging interest every time a consumer buys a ticket.

“We have absolutely no control over it and we certainly don’t profit from it,” explained Andrea Marantz, with WCLC. “We object to this policy because it isn’t the same as a cash advance.”

In a statement to Global News, RBC said gaming transactions, including the purchase of lotto ticket, are automatically considered to be cash advances and interest is added.

Not all banking institutions charge interest, some treat it as a regular purchase. Marantz said they’ve had consumers who’ve complained and had charge reversed.

Wile urges those who use their credit card to buy lotto tickets to check their statements. She doesn’t want anyone else to fall for the same game.