Paying for road tax at post office on a credit card

Carnival789

Has anyone here done this? If so, was there a charge for doing so?

Just had my reminder through which states that a fee would be added if I paid online with a credit card. After digging around a bit I've found there "may" be a charge if I pay by credit card at a post office. (Surely they must know if there is or not!!)

dzug1

It never used to be possible to pay by credit card at a PO for things other than stamps, etc - ie post office products.


Assuming things have changed, it may well depend on the credit card issuer (who may treat it as a cash advance) or the local postmaster (who may have the 'freedom' to accept or not or charge or not if it comes out of his pocket)

YorkshireBoy

dzug1 wrote: »

...it may well depend on the credit card issuer (who may treat it as a cash advance)

Whether it's a cash transaction or not will depend on which MCC (merchant category code) the Post Office payment systems apply to the transaction. The card issuer only processes what it's told to process. At least that's my understanding?

Aquamania

Carnival789 wrote: »

Has anyone here done this? If so, was there a charge for doing so?

Just had my reminder through which states that a fee would be added if I paid online with a credit card. After digging around a bit I've found there "may" be a charge if I pay by credit card at a post office. (Surely they must know if there is or not!!)

Have you asked at your local post office?

It would be the PO that apply a charge, not DVLA who sent you the letter.

Sally22_2

[STRIKE]There is a fee charged at the Post Office counter for payment by CC but its a DVLA requirement that the fee is charged. I think its currently £2.85ish[/STRIKE]

(Edited to say please read my post further down for clarification - Post #7)

Aquamania

Sally22 wrote: »

There is a fee charged at the Post Office counter for payment by CC but its a DVLA requirement that the fee is charged. I think its currently £2.85ish

That interesting.

Do you have an independent source to verify that?

Who gets the fee? If DVLA is demanding it is applied, presumably DVLA get it.
If so, and as DVLA are just a government organisation, is that a hidden tax they are collecting?

Also the PO would be charged a fee by the credit card company, so are the PO losing out? The credit card fee applied by the company usually is a percentage of the transaction value.
Car tax prices can vary so much. Maybe as little as £20 up to about £500

Sally22_2

Sorry I knew I should have double checked before posting, wasnt quite awake yet! Its not a DVLA requirement, it is a PO requirement for the fee to be charged.

Here is the information PO colleagues received

Payment by Credit Card has an associated handling fee which Post Office reclaims by adding £2.50 to the overall transaction fee for the customer.

I cant link to a source as its not online. I work for PO.

antonymp

When I taxed my new car at the Post Office back in July I asked if I could pay via my credit card and the assistant told me there was an extra £2.50 charge for credit cards, so I declined and paid with my debit card instead, It's the same through the DVLA website, they state there will be a charge for paying on credit card.

thebritishbloke

Sally22 wrote: »

Sorry I knew I should have double checked before posting, wasnt quite awake yet! Its not a DVLA requirement, it is a PO requirement for the fee to be charged.

Here is the information PO colleagues received



I cant link to a source as its not online. I work for PO.

Surely this wouldn't be legal in line with the new regs that you can only charge what it actually costs you to process the transaction. I.e. a "handling fee" would not be allowed.

Aquamania

thebritishbloke wrote: »

Surely this wouldn't be legal in line with the new regs that you can only charge what it actually costs you to process the transaction. I.e. a "handling fee" would not be allowed.

I don't think it necessarily would be.

See "Aggregation and averaging of costs"
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/175298/13-719-guidance-on-the-consumer-protection-payment-surcharges-regulations-2012.pdf (page 13)

That's essentially what DVLA do,
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/192930/foi_Credit_Card_Charges_-_February_2012_1_.pdf
although DVLA are excluded from the above regulations anyway.

Fruit_and_Nut_Case

wahid22 wrote: »

<snip>

:spam: :spam: