Section 75

SebastianTheDuck

I need some advice. I've got a guy doing some building work for me and I need to pay him £2,200. I want to pay using my credit card, so I can take advantage of Section 75 if the work turns out to be shoddy. However, the guy only takes cash or bank transfer. Barclays won't let me transfer money from my credit card to his bank account. However, they will let me transfer money from the credit card to my bank account.

If I transfer the money from the credit card to my bank account, and then transfer that money to his bank account, can I still take advantage of Section 75 if the work isn't up to scratch?

Emmia

SebastianTheDuck said:

I need some advice. I've got a guy doing some building work for me and I need to pay him £2,200. I want to pay using my credit card, so I can take advantage of Section 75 if the work turns out to be shoddy. However, the guy only takes cash or bank transfer. Barclays won't let me transfer money from my credit card to his bank account. However, they will let me transfer money from the credit card to my bank account.

If I transfer the money from the credit card to my bank account, and then transfer that money to his bank account, can I still take advantage of Section 75 if the work isn't up to scratch?

No, because once the money is in your account it is just part of the cash in your account. When you pay him from your account using money in your account it will become a bank transfer, which has no protection (like cash).

SebastianTheDuck

That's what I was afraid of.

Grumpy_chap

SebastianTheDuck said:

I need some advice. I've got a guy doing some building work for me and I need to pay him £2,200. I want to pay using my credit card, so I can take advantage of Section 75 if the work turns out to be shoddy. However, the guy only takes cash or bank transfer. Barclays won't let me transfer money from my credit card to his bank account. However, they will let me transfer money from the credit card to my bank account.

If I transfer the money from the credit card to my bank account, and then transfer that money to his bank account, can I still take advantage of Section 75 if the work isn't up to scratch?

No.

If your confidence in this Tradesperson is so low that you expect them to output shoddy work and need to rely on S75, why not find an alternative Tradesperson?

Emmia

SebastianTheDuck said:

That's what I was afraid of.

I think if you're worried about this tradesman, then you should find another that you trust to do the work.

Mr_Blue52

The builder probably doesn’t have a card machine, therefore that’s why he has asked for cash or bank transfer. 

Card machines are becoming more readily available today for small businesses with the likes of Zettle but he probably prefers cash or bank transfers.

If not sure about this person, then like the others have said then go with a trusted tradesman. 

DullGreyGuy

Mr_Blue52 said:

The builder probably doesn’t have a card machine, therefore that’s why he has asked for cash or bank transfer. 

Card machines are becoming more readily available today for small businesses with the likes of Zettle but he probably prefers cash or bank transfers.

If not sure about this person, then like the others have said then go with a trusted tradesman. 

You dont even need a card machine with Zettle anymore as long as you've got a half decent smartphone from the last few years (iPhone X or Android 8), can do Tap & Pin or Apple/GooglePay etc 

Ultimately costs them 1.75% and opens them up to the potential of chargebacks etc and some small businesses simply don't want that. Secondly, some will have to pay material costs straight to their building merchant so their money is limited to labour and extends how long they can go before having to register for VAT which they cannot do semi-covertly if taking card payments. 

Mr_Blue52

DullGreyGuy said:

Mr_Blue52 said:

The builder probably doesn’t have a card machine, therefore that’s why he has asked for cash or bank transfer. 

Card machines are becoming more readily available today for small businesses with the likes of Zettle but he probably prefers cash or bank transfers.

If not sure about this person, then like the others have said then go with a trusted tradesman. 

You dont even need a card machine with Zettle anymore as long as you've got a half decent smartphone from the last few years (iPhone X or Android 8), can do Tap & Pin or Apple/GooglePay etc 

Ultimately costs them 1.75% and opens them up to the potential of chargebacks etc and some small businesses simply don't want that. Secondly, some will have to pay material costs straight to their building merchant so their money is limited to labour and extends how long they can go before having to register for VAT which they cannot do semi-covertly if taking card payments. 

I wasn’t aware that you can use a modern smart phone to take card payments. Up until recently I worked in banking since the late eighties & can still remember the old credit card imprinter and Access Credit Cards 😀

I suppose a sole trader, partnership or a small limited company don’t want the hassle of doing chargebacks and prefer cash or transfer. 

Nasqueron

Mr_Blue52 said:

DullGreyGuy said:

Mr_Blue52 said:

The builder probably doesn’t have a card machine, therefore that’s why he has asked for cash or bank transfer. 

Card machines are becoming more readily available today for small businesses with the likes of Zettle but he probably prefers cash or bank transfers.

If not sure about this person, then like the others have said then go with a trusted tradesman. 

You dont even need a card machine with Zettle anymore as long as you've got a half decent smartphone from the last few years (iPhone X or Android 8), can do Tap & Pin or Apple/GooglePay etc 

Ultimately costs them 1.75% and opens them up to the potential of chargebacks etc and some small businesses simply don't want that. Secondly, some will have to pay material costs straight to their building merchant so their money is limited to labour and extends how long they can go before having to register for VAT which they cannot do semi-covertly if taking card payments. 

I wasn’t aware that you can use a modern smart phone to take card payments. Up until recently I worked in banking since the late eighties & can still remember the old credit card imprinter and Access Credit Cards 😀

I suppose a sole trader, partnership or a small limited company don’t want the hassle of doing chargebacks and prefer cash or transfer. 

don’t want the hassle of doing chargebacks paying tax and prefer cash or transfer. 

Think that is more likely to be honest. That or they fall for the myth that cash is fee free

DullGreyGuy

Mr_Blue52 said:

DullGreyGuy said:

Mr_Blue52 said:

The builder probably doesn’t have a card machine, therefore that’s why he has asked for cash or bank transfer. 

Card machines are becoming more readily available today for small businesses with the likes of Zettle but he probably prefers cash or bank transfers.

If not sure about this person, then like the others have said then go with a trusted tradesman. 

You dont even need a card machine with Zettle anymore as long as you've got a half decent smartphone from the last few years (iPhone X or Android 8), can do Tap & Pin or Apple/GooglePay etc 

Ultimately costs them 1.75% and opens them up to the potential of chargebacks etc and some small businesses simply don't want that. Secondly, some will have to pay material costs straight to their building merchant so their money is limited to labour and extends how long they can go before having to register for VAT which they cannot do semi-covertly if taking card payments. 

I wasn’t aware that you can use a modern smart phone to take card payments. Up until recently I worked in banking since the late eighties & can still remember the old credit card imprinter and Access Credit Cards 😀

I suppose a sole trader, partnership or a small limited company don’t want the hassle of doing chargebacks and prefer cash or transfer. 

We still have a Zettle card reader but they aren't necessary any more but some people may not be comfortable just tapping the card to someone's phone as who knows what software is on there doing/recording what. 

Nasqueron said:

Mr_Blue52 said:

DullGreyGuy said:

Mr_Blue52 said:

The builder probably doesn’t have a card machine, therefore that’s why he has asked for cash or bank transfer. 

Card machines are becoming more readily available today for small businesses with the likes of Zettle but he probably prefers cash or bank transfers.

If not sure about this person, then like the others have said then go with a trusted tradesman. 

You dont even need a card machine with Zettle anymore as long as you've got a half decent smartphone from the last few years (iPhone X or Android 8), can do Tap & Pin or Apple/GooglePay etc 

Ultimately costs them 1.75% and opens them up to the potential of chargebacks etc and some small businesses simply don't want that. Secondly, some will have to pay material costs straight to their building merchant so their money is limited to labour and extends how long they can go before having to register for VAT which they cannot do semi-covertly if taking card payments. 

I wasn’t aware that you can use a modern smart phone to take card payments. Up until recently I worked in banking since the late eighties & can still remember the old credit card imprinter and Access Credit Cards 😀

I suppose a sole trader, partnership or a small limited company don’t want the hassle of doing chargebacks and prefer cash or transfer. 

don’t want the hassle of doing chargebacks paying tax and prefer cash or transfer. 

Think that is more likely to be honest. That or they fall for the myth that cash is fee free

Would argue that is much more cash in hand than a bank transfer