payment using credit card for windows deposit

Options
parma_2
parma_2 Posts: 1 Newbie
in Credit cards
Hello,

We are buying doors and windows from a small company. they are asing 50% deposit. My concern is how can i protect my deposit if the company goes out of business before supply of the windows. Company is using paypal to take our deposit. my query is will our deposit be protected under section 75 of consumer credit act for the deposit if the company goes out of business during the time.

regards

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    No. Only if you pay directly via a credit agreement.
  • McKneff
    McKneff Posts: 38,825 Forumite
    Name Dropper First Anniversary First Post
    Options
    You can pay just the smallest amount by credit card, even as little as £1 and you wiill be protected with S75
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • Ebe_Scrooge
    Ebe_Scrooge Posts: 7,320 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    Options
    As above, you'll only be protected by S75 if you pay directly by credit card - though you only need to pay £1 on credit card to receive the protection ( so long as the total purchase is between £100 and £30,000 ). This "Paypal" question is often asked, and unfortunately it circumvents the S75 protection.

    However, I know that many small companies won't accept credit cards - if that's the case, then you're a bit snookered. The alternative is to pay by debit card. Many small companies who won't accept CC will accept a debit card. You don't get quite the same level of protection as S75, but you do have the "chargeback" option as explained here : http://www.moneysavingexpert.com/shopping/visa-mastercard-chargeback

    Hope this helps.
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
    Combo Breaker First Post Newshound!
    Options
    Could you not order your doors and windows elsewhere? A small company which doesn't accept credit cards and requires payment by paypal rings alarm bells to me.
  • phillw
    phillw Posts: 5,594 Forumite
    First Anniversary Name Dropper First Post
    Options
    parma wrote: »
    Company is using paypal to take our deposit.

    If it's a transaction for supply of goods then paypal may cover it themselves, you would need to check with paypal. I think using a credit card with paypal costs more than using a debit card as well.

    I'm not sure I'd use a company that used paypal and wanted 50% up front.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.3K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 248K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards