Can a vendor charge a 2% credit card handling fee?

kaz000
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!

Comments

  • Any
    Any Posts: 7,944 Forumite
    First Post First Anniversary Combo Breaker
    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.
  • lisyloo
    lisyloo Posts: 29,609 Forumite
    Name Dropper First Anniversary First Post
    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.
  • Paul_Herring
    Paul_Herring Posts: 7,481 Forumite
    Name Dropper Photogenic First Post First Anniversary
    kaz000 wrote: »
    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 Dorries
  • Mutton_Geoff
    Mutton_Geoff Posts: 3,817 Forumite
    Name Dropper Photogenic First Post First Anniversary
    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 weeks
  • mumofjusttwo
    mumofjusttwo Posts: 2,610 Forumite
    First Anniversary Combo Breaker
    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 11/374
  • NickX
    NickX Posts: 3,046 Forumite
    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.
  • Paul_Herring
    Paul_Herring Posts: 7,481 Forumite
    Name Dropper Photogenic First Post First Anniversary
    As long as the total purchase is between £100 and £30,000
    and your credit card doesn't have a positive balance (including Egg Money)
    you 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 Dorries
  • NickX
    NickX Posts: 3,046 Forumite
    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.
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