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  • FIRST POST
    • funny.money
    • By funny.money 14th Sep 18, 1:29 PM
    • 62Posts
    • 15Thanks
    funny.money
    Quick Question re Credit Card Charges
    • #1
    • 14th Sep 18, 1:29 PM
    Quick Question re Credit Card Charges 14th Sep 18 at 1:29 PM
    Hello, My granddaughter's friend has found a car that she is planning to buy from a local dealer. She has managed to get a Barclaycard with 27 month's free interest and she will be able to repay in that time.

    The garage have said that she needs to pay 3% on top for paying by credit card - I thought this wasn't allowed anymore, does it only apply to online purchases or specific things?

    Thank you.
Page 1
    • Willing2Learn
    • By Willing2Learn 14th Sep 18, 1:32 PM
    • 1,441 Posts
    • 1,095 Thanks
    Willing2Learn
    • #2
    • 14th Sep 18, 1:32 PM
    • #2
    • 14th Sep 18, 1:32 PM
    Hi,

    Companies CAN still charge you an admin fee as long as it applies to other forms of payment too. You were pretty lucky to find a dealer who will accept a credit card payment...
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • molerat
    • By molerat 14th Sep 18, 1:39 PM
    • 19,304 Posts
    • 13,518 Thanks
    molerat
    • #3
    • 14th Sep 18, 1:39 PM
    • #3
    • 14th Sep 18, 1:39 PM
    Hi,

    Companies CAN still charge you an admin fee as long as it applies to other forms of payment too. You were pretty lucky to find a dealer who will accept a credit card payment...
    Originally posted by Willing2Learn
    I very much doubt they will charge 3% for paying in crisp 20 notes so they cannot charge for using the card. They will of course likely refuse to accept card payment if you refuse to pay the fee. They obviously need reporting as they are behaving illegally but will get away with it as many people will not be able to come up with an alternative method of payment. https://www.citizensadvice.org.uk/consumer/get-more-help/report-to-trading-standards/


    Used car dealer showing their true dodgy colours, who'd have thought it
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    • Terry Towelling
    • By Terry Towelling 14th Sep 18, 1:46 PM
    • 548 Posts
    • 466 Thanks
    Terry Towelling
    • #4
    • 14th Sep 18, 1:46 PM
    • #4
    • 14th Sep 18, 1:46 PM
    The issue with CC fees is that a retailer is not permitted to discriminate between payment methods. In practice this means they can only add a surcharge if they apply the same surcharge to all forms of payment. In other words, if they also charge a fee for cash/cheque payments then it is fine for them to charge you a fee for credit card usage.

    The way you phrase your original post it seems fairly clear that the retailer is discriminating here and wouldn't be making a surcharge for cash. So, they are acting incorrectly and shouldn't be charging any extra for the card.

    The question is, does your granddaughter's friend actually want to buy this car? Kicking up a fuss won't help because the retailer could quite simply say they won't accept the card for payment. Paying by cash (with presumably no fee) doesn't help with the interest free utilisation. Paying the fee is annoying but they still get the 27 months without any CC interest and 3% spread over 2 years isn't so bad.

    Of course, they could pay the fee, take the car and then complain to the card issuer. The issuer may pass the complaint to the retailer's bankers and you may get something out of it - but I doubt it. If paying the fee, make sure it is itemised as a fee and not just included in the price on the receipt.
    • Nick_C
    • By Nick_C 14th Sep 18, 1:51 PM
    • 4,194 Posts
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    Nick_C
    • #5
    • 14th Sep 18, 1:51 PM
    • #5
    • 14th Sep 18, 1:51 PM
    In situations like this, a Curve card can be useful. The retailer treats it as a Debit Card but Curve pass the charge through to a linked credit card.

    Initial Curve limits start at 10K a year and 2K a day, but increase to 50K and 3750 after a few months use.

    If the car is less than 4K, you could maybe do two Curve transactions on consecutive days.

    It takes about a week to apply for and set up a Curve card.
    • Terry Towelling
    • By Terry Towelling 14th Sep 18, 3:40 PM
    • 548 Posts
    • 466 Thanks
    Terry Towelling
    • #6
    • 14th Sep 18, 3:40 PM
    • #6
    • 14th Sep 18, 3:40 PM
    In situations like this, a Curve card can be useful. The retailer treats it as a Debit Card but Curve pass the charge through to a linked credit card.

    Initial Curve limits start at 10K a year and 2K a day, but increase to 50K and 3750 after a few months use.

    If the car is less than 4K, you could maybe do two Curve transactions on consecutive days.

    It takes about a week to apply for and set up a Curve card.
    Originally posted by Nick_C

    Don't know anything about Curve but it looks interesting. The question here is how does the item appear on the destination card account? Does it appear as a 'sale' with the retailer's name, or does it appear as 'something else' with 'Curve' as the retailer description? The only reason I ask is because OP needs this to appear as a 'sale' on the credit card to qualify for the interest-free period.

    Because all disputes are to be addressed through Curve rather than the actual destination card issuer I'm wondering what method Curve actually uses to pass the transactions on.
    • Nick_C
    • By Nick_C 14th Sep 18, 4:44 PM
    • 4,194 Posts
    • 5,828 Thanks
    Nick_C
    • #7
    • 14th Sep 18, 4:44 PM
    • #7
    • 14th Sep 18, 4:44 PM
    Curve transactions appear on my credit card statement as "CRV*" and then the retailer name.

    From today, Curve will also be passing Merchant Category Codes to the card issuer. Up until now, there has been a loophole where people could use their Curve card to get cash from an ATM with the charge going to a credit card. The MCC will enable the type of business that you have paid with your Curve card, and will enable them to identify cash withdrawals apparently.
    • Terry Towelling
    • By Terry Towelling 14th Sep 18, 8:02 PM
    • 548 Posts
    • 466 Thanks
    Terry Towelling
    • #8
    • 14th Sep 18, 8:02 PM
    • #8
    • 14th Sep 18, 8:02 PM
    Curve transactions appear on my credit card statement as "CRV*" and then the retailer name.

    From today, Curve will also be passing Merchant Category Codes to the card issuer. Up until now, there has been a loophole where people could use their Curve card to get cash from an ATM with the charge going to a credit card. The MCC will enable the type of business that you have paid with your Curve card, and will enable them to identify cash withdrawals apparently.
    Originally posted by Nick_C
    Apologies to OP for the diversion.

    So Curve effectively performs the role of a pseudo-Card Issuer (by providing a line of credit up front) and then 'converts' itself into a retailer to process a transaction through to a physical Card Issuer.

    Because the use of the MCC seems to be key in telling the physical Card Issuer whether the transaction is cash or a purchase that suggests it is being processed through using the '05' Sale Transaction Code. If this is true then OP should have no trouble getting the interest-free option for a purchase on their Barclaycard.

    I presume there are safeguards to prevent you from linking other people's credit cards into your Curve 'wallet'?
    • molerat
    • By molerat 14th Sep 18, 8:50 PM
    • 19,304 Posts
    • 13,518 Thanks
    molerat
    • #9
    • 14th Sep 18, 8:50 PM
    • #9
    • 14th Sep 18, 8:50 PM
    But losing any s75 protection in the process.
    https://www.helpforheroes.org.uk/give-support/donate-now/
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