Payment Protection Query

bigstu22

Two queries really:


1) From what I understand, credit card companies don't really like you making overpayments that create a positive balance but can't really do much about it. Am I right or can they send the money back to the original funding source? If it is dependant on issuer, FYI, I have cards with Capital One, Halifax and Santander.


2) The reason I ask is this. I make some hefty payments running into thousands for stock for my business and would like to add extra protection in the form of using my credit card if things go south with my supplier. However, my credit limit isn't high enough so my idea is to 'load' my card before using it for large payments.


They say that if something seems too good to be true then it usually is. So my feeling here is that, in the event of any claim, any credit card company seeing what I have done would politely stick two fingers up to me Or, for any payment that they have authorised, would they be legally obliged to provide the cover?

[Deleted User]

bigstu22 wrote: »

Two queries really:


1) From what I understand, credit card companies don't really like you making overpayments that create a positive balance but can't really do much about it. Am I right or can they send the money back to the original funding source? If it is dependant on issuer, FYI, I have cards with Capital One, Halifax and Santander.


2) The reason I ask is this. I make some hefty payments running into thousands for stock for my business and would like to add extra protection in the form of using my credit card if things go south with my supplier. However, my credit limit isn't high enough so my idea is to 'load' my card before using it for large payments.


They say that if something seems too good to be true then it usually is. So my feeling here is that, in the event of any claim, any credit card company seeing what I have done would politely stick two fingers up to me Or, for any payment that they have authorised, would they be legally obliged to provide the cover?

Some will allow it some do not allow it.

Technically i think you can do it in a lot of circumstances, however most credit card companies wont like it.

Is this a personal CC or a business one?

If it is a personal one and you are using it for business reasons you *may* not be covered under the same rules?! (I'm not sure just throwing it out there for someone to confirm)

If it is a business CC can you have the limit raised or do you have lines of credit direct with the supplier? Ie buy now 30days credit note kinda thing?

How long have you been trading with this supplier - Do you expect things to go bad? Are you a sole trader?

InsideInsurance

To get protection under S75 you only need to make part payment on the credit card

The CCA applies to individuals despite its name and so would provide protection if you are a sole trader. That said, it may be a breach of the terms of your account to use a personal credit card for business purchases and so you may find your account closed if they spot what you are doing.

YorkshireBoy

bigstu22 wrote: »

If it is dependant on issuer, FYI, I have cards with Capital One, Halifax and Santander.

For Halifax, see condition 16.9 of your T&Cs

For Santander, see condition 17.7 of your T&Cs

One would imagine Capital One have a similar condition. Perhaps you could check?