I opened my account last year, deposited a small amount using a credit card, later sold my shares and then withdrew the funds which arrived back on my credit card. Which makes perfect sense and so no issues there.
I’ve recently starting investing again and so this time used the Instant Bank Transfer to deposit a much larger amount. Now when I want to withdraw the funds go back onto my credit card used last year (which for AML regulations you are not supposed to overpay) so I am now unable to use this platform to invest with larger amounts as I’d be very stuck when I need to get the funds back out.
Is there any kind of solution to this?
Have tried support and the said that it’s for AML regulations but this doesn’t make sense because the funds are being returned to a credit card when I deposited them originally from a completely separate bank account. So this would be achieving the opposite of what the AML regulations are there to achieve?
It seems silly that I should need to now cancel my perfectly good credit card to obtain letter to have it removed from my account.
Just as an update if anyone else comes across this post - I’ve since deposited a small amount of funds using a different card which is linked to my bank account, and it’s now given me the option to withdraw to that card, which is what I needed.
I have similar issue, I used multiple cards to deposit into my account, all were debit cards. My withdrawal is no problem but my investment plan in long time horizon. Where else my debit cards could expired or get lost or damaged. So I dont want to contact T212 customer service with a letter from my bank stating I had a change of debit card for so n so reason.
To avoid this I started depositing via Instant bank transfer since it came. But I can never find a option to withdrawal to my bank. Only option I have is my cards used.
I wrote few times in community post, coz at the time live chat was down but never got a reply back. (Im sure T212 is very busy) I’ll try to contact support via live chat or write an email.
I’ll suggest you do the same if no response is provided.
I think the system default is you have to withdraw all the deposited amount to the original deposit method before you are allowed to withdraw to a different account, that’s part of the AML precaustions. However, T212 can override this, usually if you send them an email.
Yes @Alien I’m aware of it. When you make a withdrawal request via mobile app it does not give you option where to withdraw but if the same request is placed via desktop site you have option to withdraw to your cards that you have used to deposit. You dont have option to withdraw to your bank.
Ok, a further update and things did not go as planned. The option to withdraw to the debit card linked to my bank account disappeared again overnight.
So the history of events ignoring the small deposit and refund back to my debit card (which is what I need to happen) was essentially…
Deposited ÂŁ200 by credit card
Bought shares
Sold shares
Withdrew ÂŁ200 + profits back onto credit card
All great and fine up to this point and makes perfect sense as the funds are being returned to the original source for AML regulations. But then…
Deposited ÂŁ1,000 via Instant Bank Transfer
Bought shares
Withdrew a small amount of excess funds back out to test the withdrawal process expecting this to go back into my bank - but the funds were refunded to my credit card instead.
So Ive had to now close all positions and withdraw everything which has all been refunded to my credit card which wasn’t the original source of funds so how this protects against money laundering is beyond me as that’s achieved completely the opposite.
Quick Summary
Added via Credit Card = ÂŁ200
Added via Bank Account = ÂŁ1000
Refunded to Credit Card (had no choice in the matter) = ÂŁ1200
Refunded to Bank Account = ÂŁ0
Will try support again now that all my funds are withdrawn to see if they can completely remove the credit card from my account.
Thanks Yasen - unfortunately I received just a long copy and paste reply with no resolution
Just that the withdrawals are automated and unless the credit card is actually cancelled and I provide proof on a letter there is nothing that can be done.
A shame as it makes the platform completely unusable for me - I can’t have all my investments refunding back to a credit card - if I move everything across that would be large sums of money refunding to a credit card if I ever want to liquidate or move.
Will submit a request to fully close my account and will have to use a different platform instead.
Will query the withdrawals process with the FCA as I’m sure it shouldn’t be sending funds added from my bank account back onto a credit card as that goes completely against the whole purpose of anti money laundering regulations.
Bit old topic, but will hook up myself.
Let’s say you plan on long term investment, for 10 years. You deposit 1k a month for 10 years, all from credit cards which expire over the time so you get new ones etc. After 10 years if you didn’t lose any money their should be at least 120k if you want to withdraw, u less you earned some through good investments. Obviously you can’t withdraw 120k to a credit card, preference would be a bank account.
How this can be done?
The ÂŁ5000 is the lending limit from the card issuer, not the limit of the positive balance that you can have. If you withdraw ÂŁ100,000 to the card you will have a balance of ÂŁ105,000 to spend.
The main point is we should have a list with all the cards used to deposit cash so we can choose where we want to withdraw. Like other brokers have…
And we should also have the option to withdraw directly into a bank account.
I’ve made a test Friday and withdrawn 10k pounds on a credit card with £5000 lending limit.
We’ll see what happens. I only had 2 credit cards as option… Not cool !
Imagine I want to deposit those 10k to Binance next … they have 2% fee for credit card deposit, so basically I will lose £200. Just because… ?!
If I can just get the money on my bank account / debit card I can then do whatever with no fee…
Why trading212 is selecting only one or two random cards as the only options to withdraw money ?
I have not made any recent withdrawal from T212, but on a similar note I believe T212 did mention few times in the past Bank withdrawal option is there if the deposit is made via bank transfer.
Hence last 1yrs I have been depositing via fast transfer but just noticed my withdrawal option is also limited to my old cards used to top-up my funds.
I guess you have to contact customer service if funds are needed in bank account.
From T212 said in the past, and due AML legislation, the withdrawals are allowed according to the origin of the funds.
E.g. funding 5k with credit card and 1k with bank transfers, you can only withdrawal up to 1k to your bank account although you have 6k in your T212 account or up to 5k to your credit card.
Also credit card issuers could freeze credit accounts/cards, with high and/or regular amounts transferred in, due to suspicions of money recycling or money laundering. That why using credit cards to fund investment accounts must have some attention.
But in any case, this kind of matters should be made by rising a ticket to client support and not publicly, the forum can’t solve these matters.