Credit card charges.

Roverboy1965

Buying son a van and wanted to pay the balance on my credit card to get any CC protection only to be told by the salesman that if I wanted to do that there would be a 2.5% credit card charge added.

Can places do that as that would mean I would be
charged £920 to use my credit card for ONE transaction !!!!!!

When i queried this he just said its what they're charged. It's like they dont want people to use credit cards !!!

InsideInsurance

You only need to pay £0,01 on the credit card to get the protection, its the total bill that has to be over £100 and not what you pay on the card.

What merchants can charge for a customer using credit cards is rather a contentious matter. The charge must reflect the actual cost to the business but this goes beyond simply the percentage they are charged (anywhere between 0.4% to 10%) but also factors in the cost of the kit to accept card payments etc.

Just pay a token amount on the credit card and you will have the protection. Pay the rest as cash or debit card to avoid the fees and you have the best of both worlds

PeacefulWaters

Roverboy1965 wrote: »

Buying son a van and wanted to pay the balance on my credit card to get any CC protection only to be told by the salesman that if I wanted to do that there would be a 2.5% credit card charge added.

Can places do that as that would mean I would be
charged £920 to use my credit card for ONE transaction !!!!!!

When i queried this he just said its what they're charged. It's like they dont want people to use credit cards !!!

As the previous poster said, pay a token amount by credit card.

I have some sympathy with the garage. If they're working on a 10% profit margin on a £40k purchase that's £4k. If a card company is taking nearly £1,000 of that it's a big hit for them.

bengal-stripe

Roverboy1965 wrote: »

.....2.5% credit card charge added........that would mean I would be charged £920 to use my credit card for ONE transaction !!!!!!

If 2.5% equals £920 then the price of the van must be £36,800.
That's a pretty high limit you have on your card! :beer:

Atidi

Roverboy1965 wrote: »

Buying son a van and wanted to pay the balance on my credit card to get any CC protection only to be told by the salesman that if I wanted to do that there would be a 2.5% credit card charge added.

Can places do that as that would mean I would be
charged £920 to use my credit card for ONE transaction !!!!!!

When i queried this he just said its what they're charged. It's like they dont want people to use credit cards !!!

Forget it and pay by cash.

Your credit card company won't protect an item intended for your son; it only protects items you purchase for yourself.

Get it fully checked out by an independent engineer before you agree to buy if you don't know anything about cars & vans. If the seller won't allow that, walk on by...
(sounds like it may be too late )

Atidi

bengal-stripe wrote: »

If 2.5% equals £920 then the price of the van must be £36,800.
That's a pretty high limit you have on your card! :beer:

Sounds like the van is way overpriced too.

Considering this is supposed to be the balance of payment, you can buy a brand new Mercedes Sprinter for between £20k and £38k depending on specification, and that's before haggling.

:cool:

thebritishbloke

Atidi wrote: »

Sounds like the van is way overpriced too.

Considering this is supposed to be the balance of payment, you can buy a brand new Mercedes Sprinter for between £20k and £38k depending on specification, and that's before haggling.

:cool:

I noticed this, I hope OP has seriously looked into what they're paying for rather than just buying the first one they've seen. I hope this van comes with a free jag.

jonesMUFCforever

Everyone seems to have overlooked one thing - Isn't S75 cover from £100 to £30000??


(I have not read anything to suggest limit has been increased)


So if the vehicle is indeed over £30k there is no cover whether you pay a £ or the whole amount on a credit card.

chattychappy

Atidi wrote: »

Your credit card company won't protect an item intended for your son; it only protects items you purchase for yourself.

It will protect you if you buy something for somebody else. It won't protect you if somebody else buys it and you use your card to pay.

OP said "buying son a van". If the OP enters into the contract, then the transaction is covered. But if the son signs the contract and the OP then uses his/her card, then the chain is broken.

Atidi

chattychappy wrote: »

It will protect you if you buy something for somebody else. It won't protect you if somebody else buys it and you use your card to pay.

OP said "buying son a van". If the OP enters into the contract, then the transaction is covered. But if the son signs the contract and the OP then uses his/her card, then the chain is broken.

As already mentioned about 2 hours earlier, item appears to be over £30k so it won't be covered... :cool:

Buzby

Also, since the van will be for business purposes, there is no s75 protection unless you can successfully argue it was a consumer purchase only. BTW, 2.5% is pretty standard and reasonable.