Transfering money from a CC to bank acct

Laummatt

Hi all

Im after abit of your advice.

We are currently purchasing a car from a dealer. After paying the £250 deposit on CC (extra protection) and trading in our car we have £3000 left to pay.

We want to use our Barclaycard as our purchase rate is 6.9% which is lower than a loan we could get. The dealer is not thrilled about us paying by CC and has said the surcharge will be 6%. Obviously for us the CC is the cheapest option esp as we plan to pay off £400/500 a month a loan wouldn't give us this option.
So, that leads me to the question as to how I can transfer the money through a third party like Paypal (3.4%), Western Union (free??)etc. We can transfer to other halfs bank acct no probs just wondered if anyone had done this??

Laummatt

Also I need it to be at the purchase rate as cash is obviously much more expensive.

dalesrider

Well paypal will cost the dealer a lot in fee's. Thats if he has a PP account.
Western union. I would be surpised if a dealer would take it.

Try pointing out the latest guidance by OFT about companies charging excessive fee's for taking credit cards.

Ask barclaycard what the interest rate would be on transfering cash to bank acc.
Might work out cheaper to get a loan and pay it off quickly.

thenudeone

Laummatt wrote: »

The dealer is not thrilled about us paying by CC and has said the surcharge will be 6%.

They've obviously added a huge mark-up to try to put you off.

Even a tiny business using Paypal's merchant services pays a maximum of 3.4% + 20p per transaction https://www.paypal-business.co.uk/accept-online-payments-with-paypal/index.htm

The going rate for websites who charge more for credit cards than debit cards is 1.5-2% extra, so I'd suggest that you offer 1.5% extra or tell them you'd walk.

jonesMUFCforever

Tell the dealer that you will walk away unless they can provide cheaper finance for you.
6% is exorbitant - no retailer will pay this to any card in charges IMO.

dresdendave

6% surcharge on £3000 is £180. Threatening to walk away might work as a bluff to get the surcharge lowered. But if the dealer won't back down and you walk, you could end up losing your £250 deposit. In other words you lose £250 in order to save £180.

FattyBettyBoo

This may be a bit complicated, and needs a good credit rating, but I took out finance to buy a car, then applied for a CC that transfered money to your account on a 0% deal and used that to pay off the finance straight away.