Any Point Paying Part of Windows Deposit by Credit Card?

emc

Hi folks.

Windows installation companies offer an insurance backed 10 year guarantee on their products, but the insurance seems to be valid only if the installation company folds.

Do people therefore pay part of the deposit by credit card, incurring an additional 3% or so on that amount, in order to get additional cover from the credit card company?

Presumably, the credit card company could be involved if there is a problem but the installation company has not actually folded. Has anyone had occasion to resort to this type of cover and has the cover helped?

Thanks.

Alan_M_2

Consider the 3% charge levied as an "Insurance Policy". Personally for a purchase of this nature I'd not consider paying the deposit in any other manner.

Check with the card provider how you stand if you pay the balance by other means. Some will cover the entire transaction value no matter how the balance is paid, some don't others have limits in place for this.

As a business that accepts credit cards for large transactions in advance of delivery I understand the piece of mind it provides my customers. As I'm comfortable knowing my product will be acceptable I'm comfortable taking payment in that manner. It's actually more a liability to the company than you probably understand.

The 3% surcharge is simply passing on the cost of the transaction made by the card provider, although 3% is a little steep, that's what Amercain Express charge us. Visa and Mastercard are in the region of 1.07% to 1.77% (for my particular business) depending on the exact designation of the card.

moonrakerz

Alan_M wrote: »

Check with the card provider how you stand if you pay the balance by other means. Some will cover the entire transaction value no matter how the balance is paid, some don't others have limits in place for this.

No need to : The Law says that if the deposit is paid by CC the whole transaction falls within Sect 75.

"The claim is not limited to the amount of the credit card transaction. Customers can claim for all losses caused by the breach of contract or misrepresentation. And this applies even if all they paid by credit card was the deposit."

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/31/creditcards-31.htm

sillygoose

I had £32,000 of fascia, cladding, drainware, windows, doors, conservatory and landscaping done recently without paying a penny of deposit ever. I just paid for each stage upon completion and when I was satisfied. Zero risk to me. All the companies I got quotes from offered the same terms. Perhaps you window company isn't the best choice?

vaio

Alan_M wrote: »

......Check with the card provider how you stand if you pay the balance by other means. Some will cover the entire transaction value no matter how the balance is paid, some don't others have limits in place for this.......

moonrakerz wrote: »

No need to : The Law says that if the deposit is paid by CC the whole transaction falls within Sect 75.

"The claim is not limited to the amount of the credit card transaction. Customers can claim for all losses caused by the breach of contract or misrepresentation. And this applies even if all they paid by credit card was the deposit."

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/31/creditcards-31.htm

S75 applies if you any part of the cost by CC, you don't have to pay the whole cost or even the whole deposit, as long as you pay something and the contract is under £30k then you are covered.

Rotor

vaio wrote: »

S75 applies if you any part of the cost by CC, you don't have to pay the whole cost or even the whole deposit, as long as you pay something and the contract is under £30k then you are covered.

It has to be more than £100 doesn't it?

julianashcroft

It can be just a penny deposit on the card and then even if you pay the rest by cash or cheque, the whole whole amount is covered.

vaio

Rotor wrote: »

It has to be more than £100 doesn't it?

Yep. S75 covers goods between £100 and £30k but there is no lower limit on how much you have to pay by CC to qualify

Alan_M_2

Rotor wrote: »

It has to be more than £100 doesn't it?

That's for payments made by Visa Debit card.

As the others have pointed out, there are limits in place for transactions of this nature carried out by credit card.

I'm always rather suspicious of the Financial Ombudsman having spent the last two years dealing with them over my business bank, having the FO uphold our complaint but then inform us that the Bank are not responsible for the consequential losses of it's failings anyway. An entirely pointless exercise.

Also it's worth checking how they deal with claims for contracts that exceed £30,000. Say you had a £50,000 extension built and paid a £5000 deposit on a credit card. Don't automatically assume it will cover up to £30,000 of the £50,000, as the value exceeds £30,000 they can argue it's outside the parameters of what's insured and non of it covered. Slimy lot these banks when it comes to being accountable.