Direct Debit V Credit Card

bmr

I use Amex CC with the cashback facility. To take advantage of it I wanted to pay my mobile bill with the Amex card. The mobile company are happy with my proposal but added that by paying with a CC I will be surcharged approx £4 every month. The thing I could not apprehend was why this 'SURCHARGE' on CC payment??:eek:

gt94sss2

Many mobile phone companies charge you extra (i.e. surcharge) if you pay by any method other than direct debit..

Regards
Sunil

bmr

Thanks. Understood. But what could be the logic behind the surcharge??

gt94sss2

bmr wrote: »

Thanks. Understood. But what could be the logic behind the surcharge??

To discourage customers by paying by any other method.

Direct debit is the cheapest method for them to process/collect payments - its done automatically and they get a 'report' of all the failed payments.

Regards
Sunil

Lavendyr

It costs them more to accept credit card payments, so they pass the cost on to you.

bmr

Thanks. Got it. I can sleep well tonight.