Large purchase

Groundhog22

Hi
im having a new kitchen and thought about paying by credit card to get section 75 protection ( it’s an independent kitchen retailer).
are there any credit cards that give cash back on a one off purchase of about £20k ?
is this a good way to pay ?
I don’t need the credit element as I want to pay off in full unless it’s interest free card 
any advice welcome 
thank you 

Mark_d

Would it be correct to assume that your retailer accepts credit cards?  Do they accept Amex?

Personally I think you should get a credit card that offers 0% on purchases for 20 months.  You'd benefit from smoothing your cashflow.  You would also be earning interest on the money as you're not paying it all off up front.

XzavierWalnut

I would be surprised that a new customer would be given a £20k limit. 

Slinky

I'd be surprised if an independent kitchen retailer will accept a large payment on a credit card. Their fees for accepting payment like this would be enormous. Check with them before going to the bother of finding a card.

CliveOfIndia

Groundhog22 said:

are there any credit cards that give cash back on a one off purchase of about £20k ?

Pretty much any card that offers cash back as standard will give you the cash back - it doesn't usually matter whether it's a one-off purchase of several small purchases.

But, as above, check that your supplier/installer will accept a credit card - it's not unusual to find that some smaller independent companies won't.

And again, I agree with the previous comment - if you can't get cashback or points of some kind then you could look at a 0% purchase card.  Use that to buy the kitchen, stick enough money into a savings account to clear it, pay the minimum to the card each month.  Let your savings earn you a bit of interest, then use them to clear the card in full just before the promotional rate expires.

All this assumes that (a) you can get a card with a high enough limit and (b) the supplier will accept payment by card.

Groundhog22 said:

thought about paying by credit card to get section 75 protection

Even if you can't get a card with sufficient limit to pay for the whole lot, you only need to pay part of the cost by card to get S75 cover (theoretically even if you pay 1p on the card then you're covered).

Groundhog22

Thank you and yes good point re just paying a small amount on credit card.  I currently use a M&S card for all purchases and pay off ( in full) and get the reward vouchers which are ok so maybe il just use that .
Plus a 0% card is a good idea too .
i will check again re retailer accepting credit card. He has said he will but maybe his costs are factored into what he’s charging me ! 

Thanks again all for your helpful comments.
recently disabled so can’t cope with any more traumas !! 

Nasqueron

Groundhog22 said:

Thank you and yes good point re just paying a small amount on credit card.  I currently use a M&S card for all purchases and pay off ( in full) and get the reward vouchers which are ok so maybe il just use that .
Plus a 0% card is a good idea too .
i will check again re retailer accepting credit card. He has said he will but maybe his costs are factored into what he’s charging me ! 

Thanks again all for your helpful comments.
recently disabled so can’t cope with any more traumas !! 

Firms cannot legally charge more for payment by CC vs cash

CliveOfIndia

Nasqueron said:

Groundhog22 said:

Thank you and yes good point re just paying a small amount on credit card.  I currently use a M&S card for all purchases and pay off ( in full) and get the reward vouchers which are ok so maybe il just use that .
Plus a 0% card is a good idea too .
i will check again re retailer accepting credit card. He has said he will but maybe his costs are factored into what he’s charging me ! 

Thanks again all for your helpful comments.
recently disabled so can’t cope with any more traumas !! 

Firms cannot legally charge more for payment by CC vs cash

That's true, of course.  I'm guessing that what the OP means is that whenever the guy prices any job, he adds on a percentage on the assumption that he'll have to pay credit card fees.  If the customer ends up paying cash then he earns a bit extra on that job.  But you're absolutely right, you can't charge a different price depending purely on the payment method.

It's why I'm always slightly suspicious when I hear stories of car dealers who are happy to accept full payment by credit card - the cynic in me assumes they must be overpricing their cars in the first place.

DullGreyGuy

CliveOfIndia said:

Nasqueron said:

Groundhog22 said:

Thank you and yes good point re just paying a small amount on credit card.  I currently use a M&S card for all purchases and pay off ( in full) and get the reward vouchers which are ok so maybe il just use that .
Plus a 0% card is a good idea too .
i will check again re retailer accepting credit card. He has said he will but maybe his costs are factored into what he’s charging me ! 

Thanks again all for your helpful comments.
recently disabled so can’t cope with any more traumas !! 

Firms cannot legally charge more for payment by CC vs cash

That's true, of course.  I'm guessing that what the OP means is that whenever the guy prices any job, he adds on a percentage on the assumption that he'll have to pay credit card fees.  If the customer ends up paying cash then he earns a bit extra on that job.  But you're absolutely right, you can't charge a different price depending purely on the payment method.

It's why I'm always slightly suspicious when I hear stories of car dealers who are happy to accept full payment by credit card - the cynic in me assumes they must be overpricing their cars in the first place.

All businesses have running costs and those will be factored into their margin/hourly rate etc. I very much doubt they sit down when doing every quote saying it's £400 for labour now I need to add on for card fee, my van and PL insurance, my accountants fees etc etc. 

No matter how a business is paid for the majority of them there will be costs involved, HSBC charge 1.5% for taking cash which is more than what card machines charge these days but add to that for cash handling it you've more employee time to pay for with counting it into the till, cashing up at the end of the day, sending someone to the bank with the money and higher insurance costs for having the cash on site. 

Dealers that will accept payment in full by card will have priced it in but also priced in are other things which may be cheaper than others (eg lower staff and insurance costs for not cash handling, lower base salary and higher commissions etc). You're free to find the near identical car from someone else if you think you can get it cheaper by them not accepting cards.  

Grumpy_chap

As others have mentioned, S75 protection will apply even if only a deposit is paid by CC.  

The thing the OP needs to remember to be aware is that the CC under S75 can only be liable to the same extent as the supplying / contracting company would be liable. 

It seems to be rather more common than anyone would like that the kitchen companies structure things so that supply is one order to one company and the installation is a separate order to a fitter.  This allows both sides to try to drive a coach and horses through consumer rights in the event of a problem.  If the CC covers the supply, but the issue is disputed between the supplier and the fitter as to whether it is a supply or fitter issue, the CC S75 may be of limited benefit.