Holiday Company Insisting on BACS Payments

DawnGr1

I have a holiday booked for Singapore in September.  The balance is due to be paid shortly and the holiday company are now telling me that due to the current circumstances they cannot take credit card payments.  The only option I have is to pay by BACS.  Am I right to be concerned and worried.  If the company go bust will I be able to get my money back?

Nick_C

Yes, you are right to be concerned and worried.  Find another holiday company that takes credit cards.  

If a company is in breach of contract, you can claim against your Credit Card provider (if the transaction cost more than £100).  If you have paid by BACS and the company fails you would be an unsecured creditor.

Most of all, a lot of scammers ask for BACS payments for accommodation which they do not own or which does not exist.

Avoid at all costs.

ETA: Sorry, didn't think this through properly. Deposit paid by credit card so you're protected. 
Bit odd though. 

DawnGr1

Thank you, problem is we have already paid the deposit.  (This was long before lockdown).  So we would lose that.

bradders1983

Name the company, please. This sounds very dodgy. 

mufi

Was the deposit paid by credit card? If so, I believe I'm right that this covers the whole cost of the holiday if things go wrong, regardless of how the balance is paid. I'm sure someone will be along shortly to tell me I'm talking rubbish/right.

Having said that, I agree it sounds dubious - has the bank pulled the plug on them accepting card payments? That appears to have happened to one of the cruise travel agents who are no longer accepting card payments.

DawnGr1

Deposit was paid via credit card but unless I pay the full balance by next week it will look like I have cancelled the holiday.  

The excuse being used is that the staff are not in the office so cannot get access to the card payment system.

phillw

As the deposit was paid by credit card then the credit card company will be on the hook if the holiday fails to happen.
I would contact your credit card company and say you are worried and want to know what evidence of the BACS payment you will need to provide in the case of a section 75 claim.

McKneff

Post prior to yours says deposit paid by credit card. 
Op, of this is the case you will be covered if the company folds. 

phillw

McKneff said:

Post prior to yours says deposit paid by credit card. 
Op, of this is the case you will be covered if the company folds. 

That post appeared while I was writing mine, I have since edited my post.

dinglebert

Charter Travel do this.  They allow the deposit to be paid via card but main payment has to be BACS.  The problem I see it is that the credit card company are taking all the risk for a minimum of profit.  Would not be too surprised if the card companies just refused to allow cards to be used.