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  • FIRST POST
    kaz000
    Can a vendor charge a 2% credit card handling fee?
    • #1
    • 13th Oct 08, 12:55 PM
    Can a vendor charge a 2% credit card handling fee? 13th Oct 08 at 12:55 PM
    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!
Page 1
    • Any
    • By Any 13th Oct 08, 1:03 PM
    • 7,520 Posts
    • 7,852 Thanks
    Any
    • #2
    • 13th Oct 08, 1:03 PM
    • #2
    • 13th Oct 08, 1:03 PM
    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
    • By lisyloo 13th Oct 08, 1:04 PM
    • 20,825 Posts
    • 9,863 Thanks
    lisyloo
    • #3
    • 13th Oct 08, 1:04 PM
    • #3
    • 13th Oct 08, 1:04 PM
    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
    • By Paul_Herring 13th Oct 08, 2:08 PM
    • 6,069 Posts
    • 2,768 Thanks
    Paul_Herring
    • #4
    • 13th Oct 08, 2:08 PM
    • #4
    • 13th Oct 08, 2:08 PM
    Hi all,

    Wondering if a vendor is legally allowed to charge a 2% handling fee for a purchase paid for by credit card.
    Originally posted by kaz000
    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
    • By Mutton Geoff 13th Oct 08, 2:14 PM
    • 765 Posts
    • 597 Thanks
    Mutton Geoff
    • #5
    • 13th Oct 08, 2:14 PM
    • #5
    • 13th Oct 08, 2:14 PM
    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)
    Compensations/Refunds from Banks & Institutions - £2,885 | Stooz Profits - £7,636 | Quidco - £3,497

    All with a big thank you to Martin and MSE.com from Mutton Geoff!
    • mumofjusttwo
    • By mumofjusttwo 13th Oct 08, 2:18 PM
    • 2,602 Posts
    • 40,789 Thanks
    mumofjusttwo
    • #6
    • 13th Oct 08, 2:18 PM
    • #6
    • 13th Oct 08, 2:18 PM
    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
    • #7
    • 13th Oct 08, 3:10 PM
    • #7
    • 13th Oct 08, 3:10 PM
    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.
    Originally posted by mumofjusttwo
    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
    • By Paul_Herring 13th Oct 08, 3:16 PM
    • 6,069 Posts
    • 2,768 Thanks
    Paul_Herring
    • #8
    • 13th Oct 08, 3:16 PM
    • #8
    • 13th Oct 08, 3:16 PM
    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
    • #9
    • 13th Oct 08, 3:21 PM
    • #9
    • 13th Oct 08, 3:21 PM
    and your credit card doesn't have a positive balance (including Egg Money)
    Originally posted by Paul_Herring
    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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