Is it worth getting a credit card for a one-off purchase?

icicat

Hi all,

I run a small side business. I'm ordering some custom made items for my business, from what looks like a pretty legit company that specializes in such bespoke items.

When it comes to the payment they only accept bank transfer or credit card payment.

I've only ever used paypal for large payments with the peace of mind I am protected should anything go wrong. It's quite a large sum of money, so was wondering is a bank transfer covered in any way? Or should I take out a credit card specifically for this transaction as I know credit cards are covered in some way.

If credit card is the best way to go can anyone recommend which one to get? I have no use for credit cards and the idea is that anything I buy with them I pay off straight away as I don't want to be charged lots of interest. Would the credit card protection only be valid if I haven't paid it off and technically the money is still the banks?

Any advice would be great. 

marcia_

 Pretty sure consumer legislation won't protect you as a business 

grumbler

icicat said:

When it comes to the payment they only accept bank transfer or credit card payment.

It's hard to believe that they accept credit cards and don't accept debit ones.

born_again

Bank transfer = same as giving cash.
Odd that they take CC, but not debit, given they are the same payment method.

 from what looks like a pretty legit company that specializes in such bespoke items.

That has alarm bells ringing in my head.... More research required on them, that are not some Chinese co. Do not rely on a .co.uk website address.
Check T/C, returns policy (do they make sense & do not look like a cut & paste job) & that there is UK address & phone number.

icicat

Hey born_again, I think it's legit as the owner is from the UK and heard his voice, definitely doesn't sound Chinese though good point. Though I can't find them on trust pilot, so can't really confirm reviews. Maybe a credit card is the best way to go as it at least feels safer than a bank transfer. Can anyone recommend which card to apply for and which to avoid?

icicat

Also isn't debit card pretty much the same as bank transfer? No way to get your money back?

lr1277

icicat said:

Also isn't debit card pretty much the same as bank transfer? No way to get your money back?

Not quite. There is a scheme called chargeback. This is a discretionary scheme offered by Visa and Mastercard. However it is not statuory.

Essentially if your bank offers the mechanism (and I don't know of any bank with offering current accounts that doesn't), then at your request they will take the money back from the supplier's bank account.

Two reasons for caution: The supplier can complain and so the money is taken out of your bank account and paid to the supplier. 2) With S75, the bank pays the money. With chargeback the supplier pays the refund if they don't disagree with your contention.

Banks prefer chargeback because it doesn't hit their bottom line as the money comes from the supplier. But unlike S75, it is not statutory so there is a chance you don't get any money back.

With a bank transfer, unless the recipient returns the money, then it is gone.

Hope that explains it clearly.

icicat

So would anyone agree that a credit card is the best way forward for these type of transactions? Would they only get your money back if there was an issue if you haven't paid the debt on the card?