2%credit card charge vs 1% debit card charge?

Indispensable_Hobbes

If I had a cashback credit card at 4-5%, is it worth using the credit card and having a 2% charge for using this method over a charge of 1% for using a debit card? The purchase is £900ish

Am I right in thinking--
Debit Card charge: £9 / No cash back therefore no gain
Credit Card charge: £18 / Cash Back: £36-45 / £36-45 minus £18 = £18-27 gain... then pay off the cc and pay no interest.

CannyJock

jenyking wrote: »

If I had a cashback credit card at 4-5%, is it worth using the credit card and having a 2% charge for using this method over a charge of 1% for using a debit card? The purchase is £900ish

Am I right in thinking--
Debit Card charge: £9 / No cash back therefore no gain
Credit Card charge: £18 / Cash Back: £36-45 / £36-45 minus £18 = £18-27 gain... then pay off the cc and pay no interest.

You mean you get cashback at 4 or 5% but the company you're making the purchase from will add 2% to the cost of the purchase to cover the merchant fee for using the card?

If that's what you mean then they would charge you £ 900 / 0.98 = £ 918.37 so that after the 2% fee it's back to £ 900. If they just "add" 2% then you've paid £ 0.37 less! Woot!:T

4% cashback on £ 918 would be £ 36.72 and you'd be £ 18.72 up.
5% cashback on £ 918 would be £ 45.90 and you'd be £ 27.90 up.

So yup, definitely better to do that than use your debit card. Not came across anyone trying to charge me for a debit card transaction.

As importantly, you get purchase protection for using credit card - but zilch protection for debit cards

Indispensable_Hobbes

i'm not sure.. i got the info from here
http://www.travelrepublic.co.uk/faq/FAQList.aspx?Id=10