Please could someone help with credit card statement and confirm if I'm correct

[TellerTuesday]

I have a virgin money credit card that I've had a at least 20 years (previously Yorkshire Bank) usually paid off each month but there was a 0% balance transfer offer so I transferred a balance from another card earlier in the year.

Decided to keep this account with just the balance transfer on there and have been chipping away at it each month.

I didn't realise but there was an auto renewal linked to that card so the balance was added to by £109.

When I got my September statement, I paid the same amount I normally do each month plus £110.

The payment has only come off my balance transfer and now my October statement advises I will be charged £3 something interest next month.

The terms of my card say payments will be allocated in the following order (screen shot) so am I correct in thinking that the £109 purchase should have been cleared first?

Yes the highest interest rate will be paid first

Maybe give them a ring, and explain the situation? In the past, I’ve had fees waived after a phone call.

I will definitely ring them tomorrow. I just wanted to check that I wasn't reading it wrong and would end up looking daft. Thank you for confirming how I understood it ☺️

Similarly I had a fee waived after a call. It's was years ago when I was new to paying credit.

Have you looked at a DD to automatically make payments?

I would interpret that exactly the same as you have.

They might argue that your 0% balance transfer offer is something like 40% discounted to 0% for the first two years, where as purchases are at 39% therefore the 40% is the higher interest rate. I would then plead good behaviours in the past etc in the hope that they’ll waive.

What does it say your balance transfer rate is after the promo period vs your purchase rate.

I had similar a few years ago when i did this.
(From memory) It puts your money into the 0% balance transfer, then when that's done, applies it it purchases. See the back of your statement, it will have the rates and dates on there.

So basically, if you want to keep the 0% balance transfer and pay off any purchases in full each month with no interest, you need to use seperate cards for each.

They kindly waived the interest for me that month when i called to query and sorted it out.

Payment hierarchy errors were v common when I worked in credit cards. Do query it, if the transaction was on the statement then I think it should have been repaid first