We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Can a vendor charge a 2% credit card handling fee?
kaz000
Posts: 3 Newbie
in Credit cards
Hi all,
Wondering if a vendor is legally allowed to charge a 2% handling fee for a purchase paid for by credit card. I know they incur fees for using credit cards, but this seems a bit steep to me. The alternative is to pay by cash but then I would lose the insurance that the credit card gives me. (I get 1% cash back on credit card so net "cost" of insurance would be 1%)
Couldn't find anything on other threads so any help would be appreciated.
Thanks!
Wondering if a vendor is legally allowed to charge a 2% handling fee for a purchase paid for by credit card. I know they incur fees for using credit cards, but this seems a bit steep to me. The alternative is to pay by cash but then I would lose the insurance that the credit card gives me. (I get 1% cash back on credit card so net "cost" of insurance would be 1%)
Couldn't find anything on other threads so any help would be appreciated.
Thanks!
0
Comments
-
Yes they are allowed to charge a fee.
Not sure whether there is limit for it but 2% doesn't seem too bad. In my old company we got charged 3% by credit card terminal provider for taking c/card payments.0 -
I don't think 2% is too bad especially if you get half of it covered.
It's then up to you to decide whether the insurance is worth 1%.
If you have a large purchase like a holiday you could consider AMEX with 5% cashback, but make sure you check out the fees as AMEX fee may be different to mastercard/visa.0 -
Hi all,
Wondering if a vendor is legally allowed to charge a 2% handling fee for a purchase paid for by credit card.
Well the alternative is they put their prices up by 2%. And may be give a discount for those paying cash...Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
I bought a GPS from an online supplier who came up cheapest in a price comparison site. A 1.5% credit card surcharge was added only after I had completed all my details on the check out page.
I later found a clause buried in their T&C's that they do this as a matter of course. They have ignored two emails from me suggesting they make this charge more prominent on their website. I won't be buying from Globalgizmos ever again.
(Hope I'm allowed to name and shame here)Signature on holiday for two weeks0 -
Don't forget that you do not have to pay the full amount on your credit card to be covered by it. I think that you could pay part credit card and pay the rest cash/cheque then the full amount is cover via your credit card.January Grocery 11/3740
-
mumofjusttwo wrote: »Don't forget that you do not have to pay the full amount on your credit card to be covered by it. I think that you could pay part credit card and pay the rest cash/cheque then the full amount is cover via your credit card.
This is absolutely correct. As long as the total purchase is between £100 and £30,000, you only need to pay £1 by Credit Card for the entire transaction to be covered by Section 75 of the Consumer Credit Act.
This would avoid the surcharge if it was bothering you.0 -
and your credit card doesn't have a positive balance (including Egg Money)As long as the total purchase is between £100 and £30,000you only need to pay £1 by Credit Card for the entire transaction to be covered by Section 75 of the Consumer Credit Act.Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
Paul_Herring wrote: »and your credit card doesn't have a positive balance (including Egg Money)
Agreed. Positive Balances are not covered by Section 75. The funds must be those borrowed from the Credit Card Provider in the first place.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.2K Work, Benefits & Business
- 603.9K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards