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Can a vendor charge a 2% credit card handling fee?
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# 1
kaz000
Old 13-10-2008, 12:55 PM
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Default Can a vendor charge a 2% credit card handling fee?

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!
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# 2
Any
Old 13-10-2008, 1:03 PM
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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.
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# 3
lisyloo
Old 13-10-2008, 1:04 PM
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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.
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# 4
Paul_Herring
Old 13-10-2008, 2:08 PM
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Quote:
Originally Posted by kaz000 View Post
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...
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# 5
Mutton Geoff
Old 13-10-2008, 2:14 PM
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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.

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# 6
mumofjusttwo
Old 13-10-2008, 2:18 PM
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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.
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# 7
NickX
Old 13-10-2008, 3:10 PM
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Quote:
Originally Posted by mumofjusttwo View Post
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.
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# 8
Paul_Herring
Old 13-10-2008, 3:16 PM
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Quote:
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)
Quote:
you only need to pay £1 by Credit Card for the entire transaction to be covered by Section 75 of the Consumer Credit Act.
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# 9
NickX
Old 13-10-2008, 3:21 PM
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Quote:
Originally Posted by Paul_Herring View Post
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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