Credit Card Cheque Fees?

Becles

A friend had the balance to pay for an expensive holiday. She was advised by the holiday company that there is a 2% charge for paying by card, so they would charge her an extra £40 to process it. My friend asked if there was a way to avoid the charge and she was advised to send a cheque instead. She sent payment by Sky Card cheque.

She was quite upset when she got the credit card statement to realise that she had been charged £52 processing fee for the cheque. This took her over her credit limit, so they charged her a further £25. She realises there must have been T&C's with the cheques, but she never noticed them.

It's turned out to be a really expensive mistake now Is this sort of fee normal for a credit card cheque? I've never used them myself, so don't have any T&C's to hand.

Bokken_2

Yes normally 2% max £50

Becles

Must have been about 3% and no max in this case

So frustrating when she was advised to pay this way by the travel company to avoid their charge.

Dave_the_Ginger_Cat

Becles wrote:

Must have been about 3% and no max in this case

So frustrating when she was advised to pay this way by the travel company to avoid their charge.

I think when the travel company said a cheque they meant an ordinary bank account one - most retailers are not massively aware of credit card cheques.

Despite this costing her more than she had hoped, she will be covered by the provisions of the consumer credit act and any additional insurance which the card provider offers. So if the travel company goes bust, she will be able to pursue the card company.

Trust she has a good holiday after all that.

DTGC

Bloke_with_a_simple_life

Dave_the_Ginger_Cat wrote:

I think when the travel company said a cheque they meant an ordinary bank account one - most retailers are not massively aware of credit card cheques.

Despite this costing her more than she had hoped, she will be covered by the provisions of the consumer credit act and any additional insurance which the card provider offers. So if the travel company goes bust, she will be able to pursue the card company.

Trust she has a good holiday after all that.

DTGC

Really? I'm not too sure about the additional coverage - how does that work with a CCC and the CCA? I thought it would be down to what ever policy was adopted by the bank/credit card company, as CCC usage rules/obligations are different from credit card. BECLES - I would ask your friend to confirm this with their credit card provider, just in case....

jonesMUFCforever

You do NOT get cover under the Consumer Credit Act when using a cheque even if it is a cheque drawn on a credit card account.

Bloke_with_a_simple_life

Thanks Ejones.... not just me then!

merch

Fee for SkyCard cheques is 2.95% uncapped. Also, interest accrues from date of transaction i.e. no interest free period

Becles

Thanks.

It's a big national holiday company, so I don't think she'll need the protection, but I'll tell her anyway.