Credit card charge

chriswa1

Hi
I'm used to paying for goods with my mastercard credit card and either it being fee free or paying up to around 2.5%.
I'm in the process of buying a new kitchen and visited a company today who were light years ahead of the others I'd visited in terms of design, suggestions etc.
I asked about payment options, and was astonished when they said I could pay by MasterCard but there would be a 10% surcharge to cover their costs. I must admit I found this very hard to believe as I've never encountered such a charge, even when dealing with small family businesses.
Does anyone have any thoughts about why there would be such a charge or even the legality of it?
Many thanks

grumbler

MSE article: Credit and debit card fee clampdown

Tell the company that they are thieves and that you are going to report them. No way can their cost be 10%.

That said, what is the advantage of paying the full price with an ordinary CC even if the surcharge is just 2.5%?

chriswa1

grumbler wrote: »

MSE article: Credit and debit card fee clampdown

Tell the company that they are thieves and that you are going to report them. No way can their cost be 10%.

That said, what is the advantage of paying the full price with an ordinary CC even if the surcharge is just 2.5%?

Thanks, that's very helpful.

With regards to your query, there's two main reasons I'd think. Protection and also just deferring the payment by a month. The former is the one that makes me consider paying a fee.

[Deleted User]

Just pay a deposit with your card, if it's just for the protection.

grumbler

chriswa1 wrote: »

With regards to your query, there's two main reasons I'd think. Protection and also just deferring the payment by a month.

2.5% even for the full 55 day is 18% APR.

The former is the one that makes me consider paying a fee.

Even £1 paid by a CC will give you full S75 protection: Section 75 refunds

jonesMUFCforever

Makes you think that if they have cowboy charges for using a credit card then what sort of cowboy job would they do on your kitchen - IMO walk away now.

chattychappy

I suppose when they say 10% to cover their costs, they mean tax. Perhaps they hope you will pay cash so they can avoid putting it through their books.

chriswa1

jonesMUFCforever wrote: »

Makes you think that if they have cowboy charges for using a credit card then what sort of cowboy job would they do on your kitchen - IMO walk away now.

I'm meeting with them next week and will give them the opportunity to confirm the costs/charges. If they still suggest the huge surcharge is necessary, I'll be running away, not walking!

chriswa1

chattychappy wrote: »

I suppose when they say 10% to cover their costs, they mean tax. Perhaps they hope you will pay cash so they can avoid putting it through their books.

Possibly, but that's not easy when you've quite a large store and website. Much easier doing it as a small business.

chriswa1

grumbler wrote: »

2.5% even for the full 55 day is 18% APR.
Even £1 paid by a CC will give you full S75 protection: Section 75 refunds

Thanks - I hadn't realised a partial payment gives you cover.

andyfromotley

jonesMUFCforever wrote: »

Makes you think that if they have cowboy charges for using a credit card then what sort of cowboy job would they do on your kitchen - IMO walk away now.

I couldnt agree more jonesey. I always run a mile from cadh in hand merchants, particularly builders!! 'So let me get this straight, you want me and my kids to sleep in something you built even though you are happy to tell me that you will break the law willy nilly to make a few quid??? No thanks.