Retailers Credit Card Charges

youngone90

This may seem like a bit of a daft question, but I know pretty much nothing about credit cards. I'm 20 and have never had one, but I am thinking of getting my first one soon. I'm mainly doing it for the rewards (I'll probably get something like the Amazon or Play card after reading an article here about them) and I am confident I will be able to pay off the full balance every month and not get trapped by the interest rates. My question is do high street stores charge you for using a credit card? I remember seeing a notice in one shop about a certain percentage charge if you paid by credit card, but this was a while ago. For example if I was to go into Tesco and pay for my food shopping with a credit card or buy some CDs from HMV and paid off the balance, would I still get charged extra by the retailers? Thanks in advance for your help.

chattychappy

Generally NEVER in the case of normal retail shops. Some small corner-shops have minimums or might want to charge an extra quid or something as charges can hit them quite hard.

You tend to get charged extra where the seller is on a particularly low margin - eg travel agents with respect to flight ticket sales. Also where you've already entered into a contract and agreed to pay something. In this situation the seller sees no reason to finance the use of a credit card so might want extra. Eg if you pay a deposit on a car, they might not accept credit card for the balance.

For gambling transactions and other cash-like transactions, these are processed differently and you're pay extra charges to the CC. Bureaux de Change often charge extra too.

Finally the situation is often different overseas. A hotel where I am (in Vietnam) might happily display the Visa/Mastercard sign and give you a room rate. But when you check out and offer a credit card, they'll expect you to cover their cost - typically 4%.

ironlady2022

Retailers will not charge for using your credit card and so long as you pay your statement in FULL and ON TIME each month, there will be no additonal charge to yourself. If it costs you, the retailer will ALWAYS make you aware before you make the transaction. If you do not trust yourself, you can ask for a low limit say £500 to start off with. If it makes it easier, whatever you spend on your credit card, make sure you put the money to one said eg in another account and when it comes to paying the bill, you won't b met with a nasty shock.

youngone90

Thanks very much for your replies. Finally, I forgot to add this in my post, what about using it to fund a paypal transaction, instead of a debit card or instant bank transfer?

ironlady2022

That will be free too!