For a person who buys a lot of things online is it worth signing up for a credit card

simmed

For a person who buys a lot of things online is it worth signing up for a credit card?

I hear they offer much more protection.

I currently only have a debit card and my finances are all fine (no debt etc).

How hard is it to run a credit card without being incurred fees?

missile

I earn 1% cash back when I use my Capital one credit card. I have direct debit set up to pay the balance and pay no fees unless I use it to draw cash or go overdrawn.

I have used charge back to get my money back.

I understand you can do the same when you pay by debit card, but never tried that. Speak to your debit card provider.

psychic_teabag

Have you read Martin's articles at http://www.moneysavingexpert.com/cards/

SailorSam

Did you watch Martin on the Tv last night, he was talking about which cards were best.

dalesrider

Is it a Visa debit card you have ?

If it is then protection is just same as far as chargebacks go. Only diffrence is no CCA cover, for purchases between £100 & £30K, per item, not total purchase price. But TBH it is not something that is used very often.

But if you can get a cashback CC then its worth it. Just remember to also use one of the many cashback sites out there to get even more.

simmed

dalesrider wrote: »

Is it a Visa debit card you have ?

If it is then protection is just same as far as chargebacks go. Only diffrence is no CCA cover, for purchases between £100 & £30K, per item, not total purchase price. But TBH it is not something that is used very often.

But if you can get a cashback CC then its worth it. Just remember to also use one of the many cashback sites out there to get even more.

Yes it's a Visa debit card

I don't understand your second paragraph.. can you elaborate please?

I also don't know what a cashback creditcard is.. Is it just one where you can ask for cash back when you buy something in a store? If so I never saw why that is a good thing lol.

psychic_teabag

A cashback credit card in one where, every time you buy something, they'll refund a percentage of what you paid. Money for (almost) nothing. Eg we have an aqua card which gives 3% cashback - for every £100 we spend, we should (eventually) get back £3.

See Martin's article at http://www.moneysavingexpert.com/cards/cashback-credit-cards

There are also cards which give you points for what you spend, which you can then exchange for shopping vouchers (eg amazon etc). If you use amazon a lot, that's effectively the same as cash back.

InsideInsurance

simmed wrote: »

I don't understand your second paragraph.. can you elaborate please?
.

CCA = Consumer Credit Act - the law that regulates things like Credit Cards.

Section 75 of the CCA makes a credit card company (as an example) jointly liable with the seller for anything that you pay for using the card as long as the total value is between £100 and £30,000 (not all of that has to be put on the card)

So the classic examples of if the merchant goes bankrupt or does a runner you can sue your credit card company in lieu of the merchant.

This protection doesnt apply to debit cards or charge cards as they arent regulated by the CCA

dalesrider

InsideInsurance wrote: »

CCA = Consumer Credit Act - the law that regulates things like Credit Cards.

So the classic examples of if the merchant goes bankrupt or does a runner you can sue your credit card company in lieu of the merchant.

This protection doesnt apply to debit cards or charge cards as they arent regulated by the CCA

Thanks for that. :T

But a retailer going bankrupt ot doing a runner can still be delt with under a chargeback.

InsideInsurance

But there is no legal obligations to Chargebacks, according to our mate Martin Lewis http://www.money.co.uk/article/1007205-chargeback-claims-how-to-get-your-money-back.htm where as there is for S75

dalesrider

InsideInsurance wrote: »

But there is no legal obligations to Chargebacks, according to our mate Martin Lewis http://www.money.co.uk/article/1007205-chargeback-claims-how-to-get-your-money-back.htm where as there is for S75

This is where sites like this fall down as they only focus on legal, and not what a card provider can do. A chargeback is a lot quicker and easier to action.

Nothing worse than trying to explain to someone how you can help them, when they start spoutng CCA etc and will not listen to the people who know how best to deal with the situation. All they focus on is "Well it says on the internet"
Not talking about your average call center person here. But someone who has spent time working to the regulations.
If in doubt ask for the disputes department. :j

Remember chargebacks are over and above your legal rights. And in Visa's case part and parcel of their regulations that ALL parties sign upto, to be able to use their services.

If you take out CCA. Then your actual legal consumer rights, while sounding good on paper are next to useless. Require YOU to do everything yourself to pursue any recompense.
There is no actual group you can turn to that will take up your case and fight it for you.
Now there would be a vote winner for a party to create a quango that would fight the consumer corner when a retailer fails to deliver, what is legally required of them.