Edit: Apologies, I wrote the wrong date, this was launched today April 24th.
We initially rolled out this function as a new service in November with 60 days notice for all customers. Today’s launch builds on that service and you can now pay with your underlying credit card where it previously wasn’t allowed. You’ll have to turn on the feature to use it.
In order to use Curve Fronted, you have to enable the feature in-app. When launching the service it’s by default turned off for all customers. If you try to make this type of transaction it will be rejected unless you’ve opted into the service and accepted the fee.
We’re making some changes to the way Curve Fronted works and the type of transactions you will be charged for making.
Curve Fronted currently applies only to transactions made at HMRC, with a 1.5% fee being applied for Curve Blue & Curve Black customers. This is free for Curve Metal customers.
As of Friday, April 24th 2020, a fee of 1.5% will be applied for certain financial services transactions, such as paying off your credit card bill with an underlying credit card, using your Curve Card, for Curve Blue & Curve Black customers. There will be no fee applied for Curve Metal customers.
This will apply to all customers in both the UK & EEA.
Why are we doing this?
In the name of transparency, it ain’t cheap. These transactions aren’t typically possible and cost us a lot of money. As we’ve grown, we’ve realised the cost just isn’t sustainable.
So we considered our options. We could do what most companies do and block these kinds of transactions altogether. This would certainly solve the cost issue, but it didn’t sit well with us and our ultimate aim to simplify your finances – we want you to have control over your money, not us.
So we decided to introduce a fee that would offset the cost to the business, but still be low enough for you to be worth it, without having to take out another credit card with a balance transfer.
We’ve exempted Curve Metal customers from the fee as the subscription fee enables us to cover the cost of transactions.
We’ve built the functionality so you’ll have to toggle-on Curve Fronted in the app in order to complete a credit-on-credit transaction.
We know this will come as bad news to some of you, but hope you can understand the reasons behind the decision.
What which transactions attract this fee?
Good question. This fee will only apply to payments made to financial service providers, money transfer platforms, mortgage brokers, loan providers, banks/building societies, investments, savings & payments that represent taxes or are categorised as governmental payments; when you have a credit card selected as funding card when making the payment with a Curve card.
Merchants within these industries carry a particular merchant category code (MCC) which is determined to understand what type of merchant they are. This information is received automatically from the payment terminal/online payment portal when you complete a transaction and it is this MCC that we will be used to identify transactions which attract a fee
This means, for example, that if you use Curve to clear your credit card bill with a credit card selected in the app you will be charged a 1.5% fee (of overall transaction value) for each payment. There will be no fee applied for Curve Metal customers.
This fee does not apply for ATM withdrawals made with a selected credit card using Curve. ATM withdrawal charges are subject to your card issuers terms and conditions.
How to enable Curve Fronted
Curve Fronted will work slightly differently depending on which Curve card you have.
If you are a Curve Blue or Curve Black customer, Curve Fronted will not be enabled automatically you’ll have to switch Curve Fronted on in the app.
To enable Curve Fronted simply tap the Card tab in your app, select the Profile icon, scroll down to Curve Fronted and toggle the feature on or off as required.
If you do not first enable Curve Fronted, when you go to pay your credit card or tax bill with a credit card, the transaction will be blocked, and you’ll be prompted to switch Curve Fronted on in the app. A 1.5% fee will be charged straight to your credit card when you make the payment.
If you’re a Curve Metal customer, the transaction will go straight through – no switches, no fees.
The boring but necessary legal bit:
These types of transactions remain free when you pay with an underlying Debit Card. In addition to paying off your credit card bill with another credit card as a funding card, there are a small number of other financial services payments that will attract this fee, please see our FAQs. Usage of this functionality is subject to our Fair Use Policy. Paying credit with credit may affect your credit score. Your underlying funding credit card issuers may still charge a fee for Curve Fronted transactions, please refer to their card terms and conditions. For more information on how Curve Fronted works, see our FAQs.