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Direct Debit V Credit Card

bmr
bmr Posts: 27 Forumite
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:

Comments

  • gt94sss2
    gt94sss2 Posts: 6,361 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Many mobile phone companies charge you extra (i.e. surcharge) if you pay by any method other than direct debit..

    Regards
    Sunil
  • bmr
    bmr Posts: 27 Forumite
    Thanks. Understood. But what could be the logic behind the surcharge??
  • gt94sss2
    gt94sss2 Posts: 6,361 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    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
    Lavendyr Posts: 2,610 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    It costs them more to accept credit card payments, so they pass the cost on to you.
  • bmr
    bmr Posts: 27 Forumite
    Thanks. Got it. I can sleep well tonight.
This discussion has been closed.
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