Paying builders via credit card?

phill99

As a builder I take Credit Cards. I'm one of the few that does. I have to pay 2.75% of the amount to the CC company. So this is built in to my quote (not added on as CC processing fees have been banned). So the customer pays the fee regardless.


The good thing with me taking cards is that I know I will get paid once the green button has been pressed. Otherwise, there has to be a level of trust between us both. TBH I have done so many jobs now, I have a good gut feeling on whether a customer is likely to mess me around, so I simply refuse to quote or out price the jobs.


However, the only reason that you seem to want to use a CC is for S75 protection. But if you do your own due diligence, much of the risk can be done away with. Do your own credit checks on the company (or individual if a sole trader). Ask for references. Ask to speak to other customers. Make sure you get a trading address.


Avoid the guys that only take cash as they are normally at the bottom end of the food chain. Decent builders will accept direct bank transfer which at least gives you a paper trail.


And you buying materials? For me its a deal breaker. Most customer will buy poor quality inferior materials and then expect the same standard of work as if I had bought top quality materials. Plus if it goes wrong, I am going to blame the materials.


You don't need s75 if you wise up.

Jackmydad

baldelectrician wrote: »

I don't like using some brands (usually down to quality issues)

I get 1 or 2 clients a year who suggest they buy the materials and then I reply- excellent, are you aware there will be no guarantee?

I point out if I buy an item and it fails I will replace it under guarantee at no cost to them. Had they supplied the item then I would charge for both visits.

Although I do suggest a local wholesaler who sells decent outside lights where the client can pick one they like the look of.

Long time since I've been on the tools SE contracting, but I soon wised up to the. "I'll get the materials" thing.
They supply a pile of tat, (one bloke thought second hand would do including cable!) and then when it needs replacing after a month, you're the bad person because you won't come back for "free"

lindze

whilst I am no expert in instructing builders etc.... but if you are wanting the protection of a credit card payment why don't you pay say £200 of each job by card, to get the protection, this would also keep the builder's cc charge to a minimum as it would only be on the £200

phill99

lindze wrote: »

whilst I am no expert in instructing builders etc.... but if you are wanting the protection of a credit card payment why don't you pay say £200 of each job by card, to get the protection, this would also keep the builder's cc charge to a minimum as it would only be on the £200

This is fine in theory. But very few builders / tradesmen actually take Credit Cards

James_Green_1982

lindze wrote: »

whilst I am no expert in instructing builders etc.... but if you are wanting the protection of a credit card payment why don't you pay say £200 of each job by card, to get the protection, this would also keep the builder's cc charge to a minimum as it would only be on the £200

i'm not sure what you mean.
If a job costs £5k and I pay £200 by CC and the remaining $4800 by cash (or bank transfer) then surely I'd only be protected for the £200?

James_Green_1982

societys_child wrote: »

Well there you go. If you feel you need this extra 'security', pay the extra price . .

I've only seen large glazing companies that accept CCs.
I have other jobs required - apart from double glazing.

James_Green_1982

Doozergirl wrote: »

That's a bit shocking, to be honest. You're nervous of trusting people to the extent that you're trying to make poor decisions on their behalf?

Well, back then I didn't really understand the difference in quality and the longer term costs of buying cheap materials first time.

(I have been disappointed with some of the cheap rubbish that is sold these days eg bathroom suites that only last 2-3 years).

But these days I would be happy to take the builder's advice on what materials to buy - but buy them myself.
If I used a CC to buy the materials and the materials stayed in the warehouse awaiting builder collection (I'd go with them) then I'm hoping I'd have protection in the (unlikely) event the building merchant went bust?

lindze

James_Green_1982 wrote: »

i'm not sure what you mean.
If a job costs £5k and I pay £200 by CC and the remaining $4800 by cash (or bank transfer) then surely I'd only be protected for the £200?

No, you would be covered for the whole lot but there is some good info here as there are rules applied depending on different circumstances: -


https://www.moneysavingexpert.com/shopping/section75-protect-your-purchases/

snowcat75

phill99 wrote: »

And you buying materials? For me its a deal breaker. Most customer will buy poor quality inferior materials and then expect the same standard of work as if I had bought top quality materials. Plus if it goes wrong, I am going to blame the materials.


You don't need s75 if you wise up.

There are two sides to this however, There are the builders who miss price a job then attempt to claw back the money by using crap materials.


Personally iv always bought and suppled materials for projects and large builds for a number of reasons.


I'm VAT registered or have been building under the self builders scheme. Many trades are sole traders under the VAT threshold I want to reclaim.

Finish of the project, and material quality, most of the projects I have done are fairly bespoke, and I have carried out a fair chunk of the work myself.. The last project I sourced the slates from 200 miles away because they were cut correct to style the roof, the gutters and the facias I bought from Germany because being a barn I wanted industrial so used 150mm steel PC because domestic simply wouldn't work, windows Aluminium but required rolled topped to fit the original Victorian openings.... Staircases I made of oak and S/S and imported the staves from the eastern block.


The list was endless, no builder would have had the time, nor the attention of detail to be able to source materials, and I would have if I let the trades I did use source materials end up buying bog standard stuff from there favourite builders yard..... which would have ended up looking like crap.

So although in some ways I can see your point that some clients may just be looking for a cheep fix there are certain projects that just can not be left to a builder or trade to buy what they think.

ess0two

Hopefully many builders will have a lucky escape from the OP.