I bought a car using % credit cards - have been charged credit card surcharge by motor dealer

landoon

I would be grateful for advice. My husband and I bought a car from a Motor Dealer two weeks ago using four 0% credit cards to the value of £17,500. Unfortunatley, there was an issue with the car and we returned the car and requested a refund less than one week later. The dealer was content to give us a refund, but advised us that the he is charged by Mastercard as a retailer for the processing of credit card transactions up to 3% of the value of the transaction and as such he didn't refund us the full £17,500 but charged us £525 to cover the cost to him charged by Mastercard in order for him to recoupe the charge. Is there anyway we can get this £525 back from our credit card provider?
The motor dealer had agreed a sale price of £17,250 for the car (which was less than the car was advertised for- hence he was doing us a deal), but when he realised we were paying with credit cards, he told us that he would be charged up to 3% on the transaction and said that he would meet us in the middle with this additional cost and so charged us an additional £250 to the total of £17,500. He wasn't nasty in his dealing with us at all, but when he agreed a refund for the car, he did tell us that he would have to charge us the full cost to him of processing the transaction from Mastercard. Unfortunately we were at his mercy and he refunded the cost of the car less the £525 (3% on £17,500). When I rang Post Office (our credit card company), and advised them of my situation, they said we would have to take it up with the dealer. I believe the car dealer would give us paperwork in writing if we asked him as he approachable and seems to of a nice nature. I can see it from his perspective in recouping the cost to him, however, it is money down the plug for us as we have no product or service to show for the £525.

[Deleted User]

Trading standards

jonesMUFCforever

Were the cards personal or business?
If personal contact each card issuer to get them to chargeback the transaction charge.

landoon

!!! wrote: »

Trading standards

jonesMUFCforever wrote: »

Were the cards personal or business?
If personal contact each card issuer to get them to chargeback the transaction charge.

The cards were personal. Is it not Mastercard that charge the surcharge to retailers as opposed to the individual credit card companies?

Chino

landoon wrote: »

Is it not Mastercard that charge the surcharge to retailers as opposed to the individual credit card companies?

It is not. Neither is it "the individual credit card companies". Any surcharges paid by a retailer are levied by whatever company the retailer uses for accepting card payments.

Voyager2002

Baffling story: if the refund went back to your credit cards then the fee to the retailer would also be cancelled.

foxy-stoat

I think you have had a nice win by getting your money back.

The charging of the use of paying by credit cards was banned last year so the dealer couldn't of charged you when you bought the car.

The "deal" to take back the car for whatever reason by the sounds of it was a negotiation - ie you did not get the full purchase price back.

You can try and get the £525 back from the card companies - dont ask dont get.

System

Voyager2002 wrote: »

Baffling story: if the refund went back to your credit cards then the fee to the retailer would also be cancelled.

Exactly. Sounds like the dealer is just trying to steal £525 from you. Either they weren't charged it. or they were and it was/will be refunded to them.

Terry_Towelling

Voyager2002 wrote: »

Baffling story: if the refund went back to your credit cards then the fee to the retailer would also be cancelled.

Not necessarily. Retailers are charged a fee by their acquiring banks for having transactions processed. A refund is still a transaction that has to be processed and a fee still has to be paid. It is not necessarily the case that the fee attached to the original sale will be returned when the sale is refunded.

Terry_Towelling

Just to repeat from the other thread that contained OPs post, the contract of sale must have included terms regarding returns and refunds.

If those terms did not specify that a charge would be levied (notwithstanding the fact surcharging is illegal anyway) then the retailer may well be in breach of contract and that might give you a foot in the door with the issuer to mention S75 of the CCA. Just an idea at this stage.

If the retailer simply says they didn't agree there was a fault and they were simply buying the car back from you and there is no itemisation of a surcharge/discount you may have problems.

chanz4

Suppose depends on the reason for return as well