HSBC dings online gamblers with higher interest

Paying for online poker with an HSBC credit card now adds up to greater interest costs.

As of Feb. 1, the banking company will charge the steeper cash advance rate rather than the standard purchase fee for gambling transactions processed through credit cards.

The interest for such transactions will anywhere from 21.9% to 27.8%, compared to the standard rate of 15.9% to 22.9%.

In a statement, HSBC said the move came about to bring the bank in line with its competition.

However, a loophole in the system allows customers to receive a lower rate of interest by charging gambling fees to online payment service Paypal, which is considered a retail purchase.

While some credit card companies in the U.K. have adopted this policy, others are still offering online gambling customers the lower purchase rates.