Charge for using credit card

Lulu0110

I have a large job coming up and to help my cash flow I wanted to pay a large bill onto a credit card, which is currently at zero. It would be repaid in full in the very near future. The company involved say they want to charge 3% but I feel sure that a cap was put in place In December, but I can't find the legislation and only minimal information that confirms a cap of .03% Can anyone advise please?

jonesMUFCforever

They can charge whatever it costs them to process the payment - 3% is not unreasonable.
It might be a small price to pay should you need to rely on a S75 claim in the future.

bigadaj

Lulu0110 wrote: »

I have a large job coming up and to help my cash flow I wanted to pay a large bill onto a credit card, which is currently at zero. It would be repaid in full in the very near future. The company involved say they want to charge 3% but I feel sure that a cap was put in place In December, but I can't find the legislation and only minimal information that confirms a cap of .03% Can anyone advise please?

They are limited to charging you the actual cost to them of accepting th credit card, interchange fees by banks have been reduced and may be about 0.3%, not 0.03%, but this isn't the total cost to the .

3% sounds quite high but 1.5-2% is commonly seen.

What are you purchasing and with whom?

Also is this a business purchase or a personal one?

Lulu0110

So in December when interchange fees were capped at 0.3% this is pointless and unenforcable legislation? Could you explain s75 I have never heard of this?

Edit apologies for original post stating 0.03% i did mean 0.3%

Lulu0110

It is a business bill for building materials of about 6k

[Deleted User]

Lulu0110 wrote: »

So in December when interchange fees were capped at 0.3% this is pointless and unenforcable legislation?

No, it's enforced. It's just not the only processing cost that merchants face.

Section 75 gives you you the same rights against the card co as the retailer.

Nick_C

The cap on interchange fees was a typical EU piece of pointless meddling that hasn't benefitted anyone, but has resulted in many people losing significant amounts of credit card cashback or paying higher fees.

King_Of_Fools

Lulu0110 wrote: »

It is a business bill for building materials of about 6k

If it is a business bill then S75 would not apply (I believe).

King_Of_Fools

Deleted_User wrote: »

No, it's enforced. It's just not the only processing cost that merchants face.

The 0.3% is the cap on how much Mastercard or Visa can charge to process card payments. However most small businesses will have an account with a processing company like Worldpay or Barclays and the fees they can charge the business are not capped.

http://forums.moneysavingexpert.com/showpost.php?p=69562528&postcount=39

jonesMUFCforever

Lulu0110 wrote: »

It is a business bill for building materials of about 6k

Forget the S75 bit then as it does not cover business transactions.