Debit-Fronted Credit - Using Curve where credit cards aren't accepted or has a fee

Correct, that includes everything VAT, PAYE, CT etc. But then again, i was an early adopter of Curve when it was only targeted at business users and my debit card says commercial on it. Frankly in business 90% of businesses prefer bank transfer over debit and credit card transactions so HMRC is likely to be largest proportion of a business spend.

Yep! Yet ANOTHER thing i wont be using Curve for. If they dont sort out Apple Pay soon its place in my wallet will be given over to the “back-up card” i seem to have to carry around with me these days!!

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I was using it to pay my modest personal income tax. The main advantage was smoothing cash flow over the year, instead of (for me) big cash outflows twice a year. Coupled with a bit of interest from stoozing, it was a nice feature.

I never understood how it could be remotely sustainable for Curve though, and lo and behold…

Shocking that it was still a “feature” on the Play Store page until recently. Is Curve coming or going??

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Curve is going.

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When logging into the Curve app I just had this ‘ad’ :point_down:t2:

‘LEARN MORE’-button leads to:

That should read…“Pay tax on Curve’s terms.” No thanks!!

Well it clearly says “for a small fee”, whats misleading there? Clearly says, fees apply.

What’s your point, Lucas? Whom here is saying anything about misleading…apart from you’re comment?

If one is paying a tax bill of £10,000, then the fee will be £150. That’s neither a “small fee” nor a fee that is related to cost, and it is therefore misleading.

We know that Curve has no financial reason to impose this fee, particularly for commercial cards. It is the most stupid idea, particularly as Curve naïvely believes that its commercial card users will want to spread the cost of corporation tax or VAT on to a personal credit card.

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You said:

Sounded to me like you felt played by Curve.
What I mean, Curve is clearly saying, there is a fee and there is nothing they’re not disclosing, since they clearly mention the fee.

Isn’t it because they receive a lower fee from HMRC since Curve is a debit and not a credit card and then using an underlying credit card will cost Curve more, therefore, a fee applies. When charging to an underlying debit card its cheaper for them --> no fee

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No, Curve always receives a debit card fee, irrespective of whether or not the merchant also accepts credit cards. There is no financial reason for the 1.5% fee, the maths of which I have explained in great detail above in this thread.

I think what really rubs people the wrong way is imposing the fee where it didn’t exist and then advertise it as some kind of new feature or advantage

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Yes megamaster.
That is exactly what I was referring to, Lucas.

I asked Curve support this question. They replied to me today:

I’ve checked and our system would currently see this BIN as a prepaid debit card. For this example we would not charge any fee for HMRC transactions using this card.

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For many, it is a new benefit :point_down: You can still benefit from racking up points on underlying credit card.

I get that it’s frustrating that it used to be possible without the fee, however, that was something you could take advantage benefit from as an early customer.

But it was sold as a feature, not an early adopter bonus :man_shrugging:

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Not true. In most instances, the 1.5% is more than the value of any points on the underlying card, which negates any benefit. There is absolutely no financial rationale for this 1.5% fee. I have asked Curve many times, both in this thread and by e-mail, to explain the mathematical rationale for the fee, and Curve is unwilling to do so because there is in fact no mathematical or financial justification for it, particularly on Curve commercial cards. Before anyone argues otherwise, please read the detailed discussion above about interchange fees.

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It is true, we even get the feedback on it.

If you don’t wish to use your Curve card you do have the option of using another one.

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Anyone who gives feedback that this is a benefit obviously can’t do the maths to calculate that the points are worth less than 1.5% and consequently that the fee is not worth paying. Don’t forget that many consumers are complacent paying 3% for FX on their credit and debit cards; this doesn’t mean that they are wise to pay it. Therefore feedback from a few misguided customers proves nothing.

I have indeed stopped using my Curve card to pay HMRC. As a result of this fee, I used an underlying card directly to pay almost £4000 of tax last month without using Curve. I still got my points - Curve’s loss, not mine, in that Curve lost out on a hefty commercial card interchange fee. Think again if you believe that this 1.5% fee benefits your customers or Curve. Instead it alienates your customers against using one of Curve’s most useful benefits.

I challenge Curve again to explain the maths that necessitate a 1.5% fee, particularly on Curve commercial cards. Curve’s silence on this question says it all.

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