Credit Card Charges

[kloofnek]

Why do we have to pay a charge for using one`s credit card yet not debit card?
I know it is supposed to be about administration and processing...so what is the difference between doing this with one card and not the other??????

[factor-fiction]

The retailer has to pay a charge (around 3% I think) to the credit card company. And on credit card you get around 4 weeks before you have to pay. In addition you get certain rights with larger transactions.
I'm not sure about debit cards- I know some places won't accept them for smaller transactions so I wonder if there is a small flat charge of maybe 30p, but I don't know.

[weecalf]

Went to buy concert tickets and pay for it by card .Was told that it be 4.50 on top of price, ad fee . Just decided to sit in that night. In saying that I have to pay some much to get a payment through paypal Nothing is never as it seems price wise anyway .

[kloofnek]

I always use a debit card where possible...however..some retailers,especially online,don`t accept them and HAVE to use CC...it really pains me to pay the charges for this.
Imagine how much one would pay if the amount is around £6000...!!!!
I have paid this amount when booking hols..fortunately have been able to use DC.
I ALWAYS use PayPal where possible...never had any charges with that!!
How have you been done so..????

[BenDToy]

I would personally never consider paying a £6k holiday entirely by DC. With a CC the CC provider is liable if the firm goes bump. This protection is not available with a DC. As long as you pay at least £100 by CC you are covered for the full amount.

[weecalf]

When you recieve a payment you are charged on paypal

[kloofnek]

My payment was to P&O cruises...quite an established firm...wouldn`t you say!!
I don`t receive payments through PayPal so doesn`t affect me.

[kloofnek]

However,Ben,will bear that in mind if I ever book with a "newish" company.I tend to use Thomas Cook and other well-known ones.

[jno]

simples: you're paying for the credit. They're lending you money till the end of the moth and charging you a bit for the privilege. A fairly normal notion.

[jno]

or even the end of the moNth.

[daffy654]

I have a Visa debit card that is accepted everywhere on the internet, if there is no option to choose Visa Debit I enter it as a plain Visa card and it is ALWAYS accepted.

[hc4361]

jno, the company gets paid straight away when you pay by credit card.

[friedgreentomato]

Comet ring any bells kloof they were an established company!!

All the money advice givers tell you to pay your hols on your credit card then pay you credit card off so you do not incurr any fees

[woofgang]

benDtoy has a point. We paid for our new kitchen by credit card. The company had a policy that it passed the CC charge on to the customer so that filk who wanted to pay by other means weren't inconvenienced, but we figured that the protection afforded by the CC was worth the charge. It was a small local company, well established and well thought of but financial collapse can happen to the best firms.

[jno]

which company, hc?

[kloofnek]

Yes,I always pay off my CC balance in full to avoid THEIR charges ...but what my quibble (and many people) is having to pay charges to the retailer/company etc.one is buying from..
Comet...I do not really know that company...never used them...but..oh yes...one does hear of these"well-known" places going bankrupt ...I suppose "never say never".

[hc4361]

jno, the discussion is 'why do some companies charge a fee when you buy a service or goods from them with a credit card?'

It's not because they have to wait for payment - the credit card company pays them straight away.

[kloofnek]

daffy..I will try that one day..but what happened about charges if they thought it to be a Visa CC?

[factor-fiction]

Most places don't charge a fee for CCs- it's mainly holidays and concert tickets.
Some credit cards offer cash back of 1% or more- well worth having if they are fee free

[woofgang]

the charges that firms charge for use of a CC is what the CC charges them. They can spread these charges over all the customers or direct it to the people who use CC's

[kloofnek]

Wouldn`t mind using a CC all the time if I were getting some cashback!!!