Where can you use credit cards?

peppa<3

Hi,

I have just applied for my first ever credit card.

So I don't come into any embarrassing situations, please could someone advise where I can (or can't) use the card? Its from Halifax so assuming VISA.

I know with the holiday provider I have just booked a holiday with they would add 2.5% onto the total spend for using a credit card, is this common practice?

Could I use it at say petrol garages, supermarkets, clothes shops, etc? Should I expect to pay a fee for using it?

I guess anywhere that has a 'VISA' sign shows it is accepted, but should they tell me if it will incur an additional charge, or should I presume it won't?

Thanks

matttye

There's not usually a fee and, yes, anywhere with a Visa logo will accept it.

peppa<3

Many Thanks.

yangptangkipperbang

peppa<3 wrote: »

I know with the holiday provider I have just booked a holiday with they would add 2.5% onto the total spend for using a credit card, is this common practice?
Could I use it at say petrol garages, supermarkets, clothes shops, etc? Should I expect to pay a fee for using it?

How do you think the banks make their huge profits on credit cards ? Apart from large APR rates that you are charged if you don't pay your account in full every month, they charge the retailer commission on every transaction the card is used for. This can be up to 4% or more depending on what the retailer can negotiate.

As you have found, some retailers add a fixed percentage to their bill. Others don't - BUT - they still have to pay a percentage to the card issuers, so their costs of doing this are "built in" to the price you pay for the item. If you buy £50 worth of petrol from a garage/supermarket a couple of quid (ish!) of that will go to the credit card issuer. This is one of the reasons that small petrol stations are fast dying out, they will be charged a much higher commission rate than the supermarkets - so their petrol costs more so people go to the supermarkets. The supermarkets sell more petrol, they can then negotiate lower commission rates - and so it goes on........

rb10

yangptangkipperbang wrote: »

How do you think the banks make their huge profits on credit cards ?

It's not so much 'huge profits' from credit cards. Most of the amount that the retailer pays to the card issues goes on the costs of providing you with a credit card for free (and all the associated services like internet banking, branches, staff etc).

Some of it also goes towards the cost to the bank of customers who do not pay back the money they have spent on the card and have defaulted.

Interest rates are then (generally) priced for risk, so that the higher risk customers (= more likely to default, costing the bank money) pay a higher amount, and lower risk customers (= less likely to default) pay a lower amount.

[Deleted User]

Just assume that you can use your card anywhere unless someone tells you otherwise. Use if for all of your normal spending (if I'm buying something from Tesco for £1.50 I'll still pay by CC) and repay in full each month. This will mean that you're not paying any interest as well as building up a good credit history.

The only places I can think of that add a surcharge are travel companies (travel agents, airlines but not hotels) and some small shops. It's pretty rare in small shops these days but it's most common in 'corner shop' type places. I believe they are required to inform you if they will be adding a surcharge and I will generally not use a CC if this is the case. I know little shop owners need to make a living but adding 50p is a bit cheeky if you ask me. It's the 21st century after all and for retailers, transaction fees should be considered an operational running cost, the same as electricity and stock IMHO.

Anyway, just use your card and don't worry about it!

anoncol

OP, i was the same as you, check my posting history when i joined a couple of months ago.

Through my experience you do NOT get paid extra for anything day to day. For me this includes fuel, supermarkets, high st shops, butchers, cheese shops, deli.

Some places intentionally charge explicitly, garages, travel agents.

The one thing that worried me when i was hawk eyeing my preapproved transactions was when you use your card sometimes, like in a fuel station or amazon or for tesco home delivery. They will do a test transaction for a £1 or .69p or something to test your card isn't blocked. This wont end up on your monthly bill.

guesswho2000

peppa<3 wrote: »

Its from Halifax so assuming VISA.

I expect it'll actually be a MasterCard from Halifax, however this is probably immaterial, especially in this country (anywhere that takes Visa usually always also takes MC).

You'll be able to use it pretty much anywhere, barring only a few smaller outlets. I use my cards for everything.