Paying for a car using Direct Debit card

weeowens

facade wrote: »

They get stung for a % of the transaction as a merchant fee from the bank.

There was some muttering on The News about making it against The Law from next year to pass this charge onto the customer, (most shops don't) but I imagine that Paypal have a team of lawyers trying to find a charging loophole.

I thought debit card use was paid by the merchant via a small flat fee but credit card use was via percentage. Hence dealers usually limt the use of credit cards to a smallish deposit.
Eg on my last car I paid £300 via credit card, £4750 as part exchange and about £8000 via debit card.

facade

A quick google shows a small flat fee. plus a small percentage, with a minimum monthly charge if they don't accrue enough charges. Not something that the banks seem to have on the front page though....

Nothing is free in this world.

takman

facade wrote: »

They get stung for a % of the transaction as a merchant fee from the bank.

There was some muttering on The News about making it against The Law from next year to pass this charge onto the customer, (most shops don't) but I imagine that Paypal have a team of lawyers trying to find a charging loophole.

All shops pass on the the cost of accepting payments for the goods to the customers. Every cost the business incurs is built into the price of the product plus a little extra for profit.

facade

takman wrote: »

All shops pass on the the cost of accepting payments for the goods to the customers. Every cost the business incurs is built into the price of the product plus a little extra for profit.

Yes, quite right, I meant directly, as in "it will cost us £1 to get your money using a card, so we are charging you £1 extra over the cash price"- rather like the DVLA charge you extra for credit cards (I wonder if The Government realised that it would affect that- watch out for an extra increase in VED )

weeowens

facade wrote: »

A quick google shows a small flat fee. plus a small percentage, with a minimum monthly charge if they don't accrue enough charges. Not something that the banks seem to have on the front page though....

Nothing is free in this world.

Hi, it is not free as such but paying by direct debit did not cost me a penny more than paying via cash, if they accepted cash.
It cost the dealer a small amount ie approx £0.40

agrinnall

weeowens wrote: »

Hi, it is not free as such but paying by direct debit did not cost me a penny more than paying via cash, if they accepted cash.
It cost the dealer a small amount ie approx £0.40

I'm not sure how that's relevant, this is not a thread about direct debits (the title is in error).