PSA Finance settlement includes credit card

edited 30 November -1 at 1:00AM in Credit Cards
4 replies 473 views
PDWrightPDWright Forumite
5 Posts
edited 30 November -1 at 1:00AM in Credit Cards

I know there have been similar questions before but no definitive answer. I’m hoping someone may have done what I am thinking about and be able to give first hand advice.

My PCP via PSA Finance ends in August and whilst the balloon payment is affordable, it would be easier if I could spread it out over a longer period. My original idea was to get a 0% purchases credit card to use for ordinary spending etc.

I didn’t think PSA would take credit card for payment but it turns out they do. What I don’t know is if this transaction would be a ‘purchase’ or treated as a cash advance. I’ve asked PSA who said ask the credit card provider, I’ve asked Sainsbury’s and they said ask PSA!

Has anyone done this and knows the answer! If it’s treated as a cash advance then obviously no point paying by credit card.

Thanks in advance.


  • MallyGirlMallyGirl Forumite, Board Guide
    5.5K Posts
    Eighth Anniversary 1,000 Posts Name Dropper Intrepid Forum Explorer
    if it is treated as a cash advance you could then bounce it to a card with a 0% BT offer but it is probably simpler to pay it off if you have the funds
    I'm a Board Guide on the Debt-free Wannabe, Loans & Credit Cards boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to [email protected]
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  • born_againborn_again Forumite
    6.2K Posts
    1,000 Posts Second Anniversary Name Dropper
    You would need PSA to find out what their merchant category code is for the payment. Then go back to sainsburys and ask them how they process that code.

    Other option is to get a card that allows money transfer offer. Then pass that to your bank acc and pay that way.
    Life in the slow lane
  • adammarshalladammarshall Forumite
    1 Post
    First Post
    MoneySaving Newbie
    How was this resolved in the end? 

    I am going through a similar process of discovery.

    I have MBNA 0% on purchases but 2.99% fee for balance transfers.

    * Dealer won't allow more than £1k on credit card, but says PSA Finance would allow paying by credit card and that I could pay off in full within 14 days.
    * PSA Finance say it depends on the credit card company, and that they have had customers who have been stung with fees when trying to pay off the finance with credit cards.
    * MBNA say it depends whether it is classed as a "cash transaction" (fees) or "retail transaction" (no fees).
    * PSA Finance weren't sure which one it is, a supervisor said it wasn't a "cash transaction".

    I feel like the dealer has overstepped by giving bad financial advice, telling customers they can open a finance agreement and then pay it on credit card no problems. But that aside, it is still a bit of a mystery...
  • jay1804jay1804 Forumite
    349 Posts
    100 Posts Second Anniversary Name Dropper
    You could try using a curve card
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