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Switching Credit Cards

  • 09-08-2022 9:34pm
    #1
    VonLuck
    Registered Users Posts: 2,278 ✭✭✭


    I'm looking at switching credit card from KBC (seeing as they're leaving the market) to someone like Avant who seem to offer the best "rewards". What's the process for switching? Do I just close my credit card with KBC and set up the new one with Avant?

    My main concern is with stamp duty and not wanting to get charged twice. I'm sure you don't get charged when you're switching, but can there be any overlap of having two credit cards at once which would cause you to be charged stamp duty twice in April? I just don't want to be cardless when I close one and waiting for the other to be issued.



Comments

  • #2
    sonyvision
    Registered Users, Registered Users 2 Posts: 566 ✭✭✭sonyvision


    I'm just like you. Still have my KBC credit card, just opened my advant Money card and it's working as expected. I will now close my KBC they will charge you the stamp duty and send a letter confirming. When this letter us received you post it to advant Money and they won't charge you the 2nd 30 euro.



  • #3
    VonLuck
    Registered Users Posts: 2,278 ✭✭✭VonLuck


    That's what I thought, but what's the cut-off point? Say if I have a credit card and I get charged the €30 stamp duty in April, then I open up a second credit card account in May. If I close the first credit card account the following March, do you still only get charged for one card?

    Just don't want to get a surprise in April with two stamp duty charges if I've accidentally held two credit cards for too long!



  • #4
    sonyvision
    Registered Users, Registered Users 2 Posts: 566 ✭✭✭sonyvision


    Worse case it's 30 euro. Best case it's zero. I don't know the cut off point but get your advant up and running close KBC in October you should be fine. Far as I know the stamp duty is per card dated 1st of April so if KBC is closed and you submit the document to advant in March you should be fine.

    I like using advant for the notifications through the app when the card is used definitely better than KBC and it's instant.



  • #5
    coylemj
    Registered Users, Registered Users 2 Posts: 25,480 ✭✭✭✭coylemj


    Revenue advice on the topic:

    Your financial institution will generally collect Stamp Duty on 1 April, in arrears, unless you close the account during the year. The tax year for credit cards runs from 2 April to the following 1 April.


    If you switch accounts you should pay the Stamp Duty to the old bank or card issuer on closing the account. Your old bank or card issuer will charge the Stamp Duty in your final statement. They will then issue a Letter of Closure to you. This letter confirms that you have paid the Stamp Duty for the period in question. You should present this letter to your new bank or card issuer. You will not be charged Stamp Duty for that period.

    https://www.revenue.ie/en/property/stamp-duty/other-stamp-duty/financial-cards/credit-cards-charge-cards.aspx



  • #6
    VonLuck
    Registered Users Posts: 2,278 ✭✭✭VonLuck


    https://www.boards.ie/discussion/comment/119452954#Comment_119452954

    I saw that, but the confusion arises where it says "switch". There's no process to formally switch credit cards. You simply close one and open another one. I guess I should just assume that if I do the whole process in the space of say a month and there's an overlap in that period I should be okay?



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  • #7
    coylemj
    Registered Users, Registered Users 2 Posts: 25,480 ✭✭✭✭coylemj



    https://www.boards.ie/discussion/comment/119453810#Comment_119453810

    You are correct in that closing one CC account and opening another are not officially linked.

    But note that the Govt. charge is per credit card account, not per person. You asked a valid question in the 2nd paragraph of your original post - about the possibilty of being charged the levy twice if there is an overlap i.e. there is a period when you have two credit card accounts. I've read the Revenue section (link above) and that issue is not directly addressed. That there may be a 'grace period' so that if you open a new account, then close the old account within (say) 4 weeks, you will not have to pay the levy twice.

    Your old bank is not going to care, it's something I'd ask the new provider. But if the letter of cover you get from KBC simply says that you paid the levy and doesn't mention the date when you closed the account, that may suffice for the new provider to give you a pass on the levy come next April.



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