Would it be normal, for a company to want to charge 5% extra on a £500 order, for paying by credit card?
5% extra, for using a credit card
- Thread starter Harry Bloomfield
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Credit card companies charge commission to traders. Big retailers can negotiate the charge down. A small company may feel they are being looted and abused.
However, if the retailer is unreliable, using a credit card gives you extra protection if the purchase is faulty, not delivered, or the supplier goes bust.
However, if the retailer is unreliable, using a credit card gives you extra protection if the purchase is faulty, not delivered, or the supplier goes bust.
I got scammed online.
I ordered an garden strimmer which never arrived.
When i read the dozens of negative reviews about goods that were ordered and were never delivered by the company, i knew i had been ripped off.
I contacted my credit card company and within a week or so i got a full refund.
I should have read the reviews about the company before ordering.
I ordered an garden strimmer which never arrived.
When i read the dozens of negative reviews about goods that were ordered and were never delivered by the company, i knew i had been ripped off.
I contacted my credit card company and within a week or so i got a full refund.
I should have read the reviews about the company before ordering.
they used to charge 3-4% quite frequently - BUT then i think the law may have changed so they cannot do that, I know i read about it quite a while back when a dear old lady freind of mine was going to pay a £4,000 bill for a bath, and they wanted to charge 4%
i will have to look up again
yep here we go
www.citizensadvice.org.uk
And i remember now, she had been charged and i then called the company and getting a refund or i was going to make it known.... to trading standards etc - and they refunded her the money - but they were not a great company or service in the end, they also used 0844 numbers
i will have to look up again
yep here we go
The costs and charges of credit cards
Information about interest and other charges, which may be incurred when using your credit card, including charges when buying things abroad, or for missed payments.
And i remember now, she had been charged and i then called the company and getting a refund or i was going to make it known.... to trading standards etc - and they refunded her the money - but they were not a great company or service in the end, they also used 0844 numbers
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Which says...
"Charges by sellers
From 13 January 2018, you can’t be charged extra for using a credit or debit card. If you’re charged more, you should complain to the trader and ask for the charge to be refunded. If that doesn’t work, you can contact the Consumer Helpline - they’ll tell you what you should do next. They may also report the matter to Trading Standards to investigate and take action against the seller.
You can still be charged extra if your bank or the seller’s bank is outside the European Economic Area (EEA) - check which countries are in the EEA on Gov.uk.
You can also still be charged if you’re using a business card."
I wonder if the seller thinks I am a business, using a business card?
It seems to be a legimate company, registered for over a decade with Company House, but they want either the 5% for a card, or a bank transfer.
This is definitely illegal now. If you pay by bank transfer then you will have no rights - this is the equivalent of handing a wad of cash to a stranger in the street.
Many suppliers I use now refuse credit cards but will accept debit cards, as the fees are much lower. This is the correct way for businesses with thin margins to operate. They pay very little, you still get some protection - less than a credit card but you can usually still make a chargeback claim, which once saved me over a grand when a supplier went bust (thankfully their payment processor kept some back to pay refunds).
Obivously it's your choice whether to deal with them, but if they're making illegal demands of their customers then be very wary.
Hello, you don't know me but I'm Prince Abdulla of Inverness. I have £10 million in my account for you. Please send me £5000 now to cover admin costs to transfer the money to you on one of my camels.
I was looking for a new camera. It was £300 everywhere, almost to the penny - clearly some price-fixing going on among the UK/EU retailers. I found it on a website based in Hong Kong for £180 inc delivery. I thought it looked dodgy.
But, given the protection offered by credit cards, I ordered it, in the expectation that I'd end up making a claim. The weirdest thing happened - the camera turned up a couple of weeks later. Brand new, genuine and sealed. I've been using it for 3 years since.
Credit cards are a licence to take a chance. If you can pay with one then you don't need to care. Some of us are intentionally reckless, and end up with some brilliant buys as a result.
that was a good find and hong kong a free port , no duty - although maybe VAT should have been paid - not an importer so not sure , but even if the carrier charged vat still a good price
i looked at camera from US many years ago - good price , would not keep the warranty , but the VAT and the Duty made it note as viable - I think it was 14% duty and 20% vat on top
The website was Tecobuy, they've since shut down. The camera was a Canon - their base model with interchangeable lenses. The savings on the posher models were absolutely vast.
I wasn't charged VAT. I don't know why not, and I didn't argue.
I knew the warranty would be invalid, and was happy to take the risk. But I could probably have made a warranty claim via the credit card anyway.
The big brands probably shut off their supplies and/or the credit card companies blocked them. Big business doesn't like grey imports and actual competition.
But my point is... if you're paying by credit card then you can take massive risks at the bank's expense!
I wasn't charged VAT. I don't know why not, and I didn't argue.
I knew the warranty would be invalid, and was happy to take the risk. But I could probably have made a warranty claim via the credit card anyway.
The big brands probably shut off their supplies and/or the credit card companies blocked them. Big business doesn't like grey imports and actual competition.
But my point is... if you're paying by credit card then you can take massive risks at the bank's expense!
Not saying this to take the p1ss, I'm genuinely asking the question. Are you confident the product is genuine and isn't a fake, some of which can be VERY good.
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AIUI if you pay any amount on the credit card then the whole amount is protected.
i.e you can pay 5% deposit on CC then the rest by any other method & the whole lot is protected by the credit card rules.
Regardless, the Co' *MUST* know it is wrong so they doing it for a reason. Walk away if you can.
i.e you can pay 5% deposit on CC then the rest by any other method & the whole lot is protected by the credit card rules.
Regardless, the Co' *MUST* know it is wrong so they doing it for a reason. Walk away if you can.
If it meets / exceeds your expectations, does it matter?
If you buy a branded coat for example, what is its important function for you?
If you want to stay warm and dry, a fake might be worth the discount.
If you want the warm and shallow glow of being a brand snob above all other things, a fake just won't cut it.
IIRC, Martin Lewis - Money Saving Expert - said that it has to be a quid.
Example was a £25k kitchen, sticking £1 on the CC gave protection for the full £25k.
CC companies don't like it, but them's the breaks......
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