Charged for paying by credit card?

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JustAnotherSaver
JustAnotherSaver Posts: 6,709 Forumite
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in Credit cards
I've heard you can still get charged, i've heard that charges have been scrapped so i thought i'd come here to find out what the situation really is.

Can you still get charged for paying via credit card?

My brother bought a vehicle at the weekend. £2,200 it was but they said it'd be an extra £66 as he was paying via credit card - so a 3% charge.

It's done now but i thought i'd see whether this is right or not?
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  • phatbear
    phatbear Posts: 4,032 Forumite
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    its not as straight forward as you may think

    the company can legally charge an admin fee however this fee also has to apply if he had chosen to pay by any other means.

    so for example there are certain car supermarkets that charge an admin fee of £199 regardless of how you pay, if they for example said that the fee would be waived if a payment was made in cash or debit card then this would be illegal
    Live each day like its your last because one day you'll be right
  • AllieKat
    AllieKat Posts: 109 Forumite
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    If it was that, a fee for paying by credit card, it was illegal. He should go back to them and request a refund and remind them it's illegal and that he will take action.

    Unless they're on a terrible merchant contract, 3% makes that a very profitable fee for them...
  • chattychappy
    chattychappy Posts: 7,302 Forumite
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    They can still charge extra for corporate cards, should it have been one of them.
  • eDicky
    eDicky Posts: 6,588 Forumite
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    JustAnotherSaver wrote: »
    My brother bought a vehicle at the weekend. £2,200 it was but they said it'd be an extra £66 as he was paying via credit card - so a 3% charge.
    How does this charge appear in the paperwork?
    Evolution, not revolution
  • Raxiel
    Raxiel Posts: 1,401 Forumite
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    I recently bought a car and was told that because of the new rules they simply had a policy of not accepting credit cards for anything above the deposit, which I didn't find all that convenient.

    I suggested I'd waive the £100 token 'discount' I'd already negotiated, if they'd waive their policy, to which they agreed.

    Perhaps not strictly within the spirit of the law, and I doubt their processing fee came close to £100, but 2 years interest free was worth more to me so I'm happy.
    3.6 kW PV in the Midlands - 9x Sharp 400W black panels - 6x facing SE and 3x facing SW, Solaredge Optimisers and Inverter. 400W Derril Water (one day). Octopus Flux
  • JustAnotherSaver
    JustAnotherSaver Posts: 6,709 Forumite
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    I haven't seen the paperwork but having been there when my sister bought a car from them it probably just says car cost xyz, xyz was paid, job done. In this case they'll put £2066.

    As it was, my sister got the second in command guy & asked if she could pay via credit card. Since my brother knows them well he said that she never told him that & he'll not charge.

    My brother ended up getting the boss. Clearly knowing them doesn't do them any favours when it comes to the boss. The second in command guy had been telling us about how there were plans to remove the charge, not at their garage but nationwide on credit cards. I didn't know it had already come in place.

    And it was a Lloyds credit card, 29months 0% on purchases.
  • System
    System Posts: 178,102 Community Admin
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    phatbear wrote: »
    its not as straight forward as you may think

    the company can legally charge an admin fee however this fee also has to apply if he had chosen to pay by any other means.

    so for example there are certain car supermarkets that charge an admin fee of £199 regardless of how you pay, if they for example said that the fee would be waived if a payment was made in cash or debit card then this would be illegal

    If it was 'an admin fee' then payment by credit card wouldn't be mentioned as it would have to apply to all forms of payment equally.
  • seatbeltnoob
    seatbeltnoob Posts: 1,312 Forumite
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    Raxiel wrote: »
    I recently bought a car and was told that because of the new rules they simply had a policy of not accepting credit cards for anything above the deposit, which I didn't find all that convenient.

    I suggested I'd waive the £100 token 'discount' I'd already negotiated, if they'd waive their policy, to which they agreed.

    Perhaps not strictly within the spirit of the law, and I doubt their processing fee came close to £100, but 2 years interest free was worth more to me so I'm happy.

    at 1.5% the credit card fee could become 3x that on a typical new car at £20K

    Some crappy businesses with bad reputation for chargebacks could end up with a crappy merchant that charges 3%
  • Raxiel
    Raxiel Posts: 1,401 Forumite
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    seatbeltnoob wrote: »
    at 1.5% the credit card fee could become 3x that on a typical new car at £20K

    Some crappy businesses with bad reputation for chargebacks could end up with a crappy merchant that charges 3%
    Fair enough, but it wasn't a new car, nor was it close to £20k. I'd expect to be able to negotiate more than £100 off at those kinds of prices.
    3.6 kW PV in the Midlands - 9x Sharp 400W black panels - 6x facing SE and 3x facing SW, Solaredge Optimisers and Inverter. 400W Derril Water (one day). Octopus Flux
  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
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    On the bright side, paying by credit card means your brother will be able to use Section 75 of the consumer credit act if there is a problem with the car. I'd ask for that £66 back, though. Sounds like a rip off to me! If they wanted £2266 for the car, why didn't they just charge that?
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
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