is this legal/ethical?

izools

233sqn wrote: »

OK, but if they do charge before they ship ... are they obidged to tell you up front?

They should give an ETA for delivery prior to asking for payment,

e.g. 6-8 weeks, 3-5 working days, etc.

You are entitled to a refund under the distance selling act for 30 days if the goods are faulty, or have arrived but are unopened. You're also entitled to a refund under the act after 30 days if the good haven't arrived.

chattychappy

Yep legal. I also think it's ethical if that is what is agreed. If over £100 you have s75 protection.

Of course the great joy of CCs is you can walk into a shop, buy goods and then enjoy them for as long as 56 days without paying. I don't think many people have ethical problems about that.

mo786uk

Personally I thought it was quite the norm to be charged for something when you order it - even when they don't post it straight away.

chattychappy

mo786uk wrote: »

Personally I thought it was quite the norm to be charged for something when you order it - even when they don't post it straight away.

Often it is, and I think there is a practical advantage for merchants too. It can be a logistical problem processing an order involves preparing goods, customising, getting them from somewhere else and only then do you find the card doesn't authorise.

eddddy

Things may have changed, but it used to be part of the CC co's merchant t&cs that merchants should not charge CCs until the goods are in stock and ready to dispatch.

The reason was to reduce the bank's risk exposure. If charge and dispatch are on the same day, there is limited time for things to "go wrong" with the merchant.

If, for example, there was a 30 day period between charge and dispatch the bank's money is at risk for that period - for example, if the merchant goes bust.

What the banks especially want to avoid is merchants using cc payments as 'working capital' for their business. e.g. a customer orders a £500 computer, then the merchant charges the cc and uses the money to buy the components to make the computer, pay the staff etc, and plans to dispatch the computer when it's ready in 30 days. That's essentially a business loan, which is much higher risk than a simple cc payment, so the bank would expect much higher interest charges to reflect the high risk.

In this scenario, I think the bank would expect the merchant to pre-authorise the £500 and not charge the cc until the computer was ready.

But perhaps the banks take a more relaxed approach on this than they used to.

diable

Go to a shop and pay cash, hand over your monies and walk out with the goods. I saw it on TV in black and white, history channel I believe.....

chattychappy

diable wrote: »

I saw it on TV in black and white, history channel I believe.....

You would have got a better picture if you'd watched on a proper black and white TV.

briankelleher

chattychappy wrote: »

It can be a logistical problem processing an order involves preparing goods, customising, getting them from somewhere else and only then do you find the card doesn't authorise.

Exactly this. The other thing is, if you order something but the money's not coming out until it's shipped, you have no idea when the money's going to come out. This could potentially lead you to overextending yourself in the meantime, possibly resulting in not being able to pay other bills etc. For me, if I order something, I want the money taken there and then, regardless of when it's shipping.