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Paying a tradesman with a credit card

Hi All,
I have an interest free credit cards and would like to pay for a largish job to the house using one rather than use a loan. The problem is, a lot of the builders do not have a machine and are generally not very clued up about how to take a payment from a credit card.

So - is it possible? Do you need a machine? And if they do have a machine (one builder does) will the card (it is a Halifax one) incur charges? What would they be?

Thanks in advance for your advice! E

Comments

  • Evilm
    Evilm Posts: 1,950 Forumite
    You shouldn't incur charges (beyond normal interest on the balance) as it should count as a normal transaction. The builder will incur charges as per his merchant agreement with the machine provider and if he wishes to could ask you to pay an extra % on top like car dealers and travel agents do.

    The builder has to be set up as a merchant with a credit card processing provider and have a machine and merchant agreements set up. Without that then you have two choices:

    1) take it out as a cash advance (but you will incur extra charges for doing this)

    2) get the builder to make a deal with another business to process the payment for him on their merchant account and then pass the funds to him (less merchant charges).

    I would not suggest the cash advance option as this will incur further charges and expenses from Halifax and it would be unlikely for the builder to be happy to do the second however.
  • eg213
    eg213 Posts: 2 Newbie
    Evilm - that's really helpful - thanks so much!

    Anyone know what the merchant charges are for a credit card?
  • TFD_2
    TFD_2 Posts: 907 Forumite
    eg213 wrote: »
    Evilm - that's really helpful - thanks so much!

    Anyone know what the merchant charges are for a credit card?

    Between about 1% and 5% depending on turnover and risk.
  • splatt30
    splatt30 Posts: 339 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Or you could ask the builder if he has a paypal account and pay him that way?
  • corrsfan
    corrsfan Posts: 10 Forumite
    i honestly dont know, but you you have any cheques that are linked to this credit card. MBNA (virgin) seem to love this idea, for exactly this sort of situation, and keep sending me more cheques just in case.

    Advantage being he takes it as a normal cheque, and niether party pay extra for it. just need to watch how its treated from an interest point of view that all, EG are these covered by the 0% rate, or do have another card that allows these cheques, then you do a bT from that, (though youd still end up paying 3/4pc fees :( )
  • Evilm
    Evilm Posts: 1,950 Forumite
    corrsfan wrote: »
    i honestly dont know, but you you have any cheques that are linked to this credit card. MBNA (virgin) seem to love this idea, for exactly this sort of situation, and keep sending me more cheques just in case.

    Advantage being he takes it as a normal cheque, and niether party pay extra for it. just need to watch how its treated from an interest point of view that all, EG are these covered by the 0% rate, or do have another card that allows these cheques, then you do a bT from that, (though youd still end up paying 3/4pc fees :( )

    I think the cheques on my MBNA card get counted as Cash Advances so do get a higher interest rate.
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