Deposit/withdrawal using cashback or rewards credit card

  1. Dear T212 team, I would like to ask about depositing funds in my account using a cashback or rewards credit card. When making the payment, I receive the transaction rewards (cashback, miles, points etc.) per my card policy. Is it a breach of the terms of deposit with credit card(s) and earn a 1,2,3,4 or 5% cashback/rewards (depending on country/currency/card) on a deposit transaction using a credit card?

  2. Secondly, many credit card issuers do not allow overpayment of credit card. In this case, unless overspent, one may not be able to withdraw all funds into the credit card used for “topping-up”. This is even more true when there is substantial profit, even exceeding the credit limit of that card. What can we do in that case? Would it be possible to withdraw in a different account/card under the same account user name?

Have you checked the T&Cs of your cashback card to see if this is even a flyer? Every cashback/rewards card I have ever seen explicitly excludes from cashback/rewards any payment made to an investment account. For example, Revolut metal says

We can’t give you cashback when doing so would break any law or regulation, or if the payment you make with your Revolut card is just to another account or payment card (such as another e-wallet, a bank account or a credit card).

I think a payment to Trading 212 would count as " to another account", hence no cashback.

Thank you for your answer Richard. I have already received air miles points on my first USD deposit with credit card, which far exceeded in value the local currency vs USD (my T212 currency) conversion rate. I am not based in EU/UK/EEA hence banking rules may differ. I got a new 5%! cashback Mastercard from a local bank and thought it may be worth giving it a try. It is easy for one to imagine how such a process could be exploited for a 3-4% non-risk net yield… (not that I am suggesting just recycling my money and not investing it). My card apparently allows e-wallet type transactions for cashback in its T&C’s.

What my main concern is the Trading212 rules. I am aware that most cards may refuse rewards/cashback on transactions based on MCC or POS codes. Same applied when I tried using my European credit card for a Transferwise transaction (to a foreign bank account I owned in different currencies).

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First to answer your question regarding overpayment: T212 can send your withdrawals directly to your bank or better directly to your debit card. So you can top up with your Cashback credit card and then withdraw to your bank or debit card.

Although this is against the AML regulations, since it’s your own account and you are limited by your credit card rules so they will manually refund to your preferred other payment mentod. Also if you wait 45 days, AML allows the funds to transferred to any account.

Now about your cash back credit card, you should be able to use it as much as you want as long as your bank doesn’t make any issues, for T212 there are no additional costs for using Cashback cards.

I’m not a financial advisor but I understand quite well how digital payments and FinTech industry works, since I’ve done this before.

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