Paying by Credit Card *Update*

[joolz1910]

Could someone please explain the benefits of this? As I understand it, if you pay a proportion of your invoice with a credit card, you are given additional protection for the whole amount of the invoice. I have a Barclay and a Tesco credit card. Would it be a good idea for me to pay a percentage of the bill by credit and the remainder by debit card? I have been told that I can do this and that the credit card charge is 1.5%.

I will try to keep my threads to a minimum.

 

[2Tiggies]

For your purchase to be protected by your credit card company the total value of the purcase needs to be a minimum of £100. I always pay on a credit card for bigger purchases, even if I have the cash which I then simply pay straight into the card.

Because UK flights and package holidays are amongst other things that incur a credit card fee a lot of the time, I have paid the deposit by credit card and the rest by debit card. This year's trip I booked accomodation and tickets through Disney UK and there was no surcharge on the card payment. I also put my flights straight onto the card (no option to do a part or split payment method online for those) but because I booked with Continental which is US based, there was no card fee so I simply had to pay my card insurance on the amount.

As far as I know though ,as long as the total value of your purchase is over £100, you need only put £1 on the card to be protected for the full value of the purchase.

 

[paulh]

think you get the same protection if you pay with a visa direct debit card as well so no charge for doing
Paul

 

[paulh]

As far as I know though ,as long as the total value of your purchase is over £100, you need only put £1 on the card to be protected for the full value of the purchase.

you have to pay at least £100 on CC to get protection
Paul

 

[wayneg]

think you get the same protection if you pay with a visa direct debit card as well so no charge for doing
Paul

There is a section on here for "What are the Chargeback rules for debit cards?"
http://www.moneysavingexpert.com/shopping/section75-protect-your-purchases

you have to pay at least £100 on CC to get protection
Paul

Another section "Should the bill or the item cost over £100?"
"As long as it costs more than £100, pay for even a fraction on a credit card and you’re protected."

 

[joolz1910]

Thanks everyone. I will pay a bit on credit and the rest on debit.

 

[joolz1910]

I have just read this on Wayne's link:

The other is buying through a Travel Agent, where it is simply directing you to get a flight from an airline or package holiday from a Tour Operator. You should have ATOL protection for package holidays anyway (see Cheap Package Holidays) but flights don’t usually have protection elsewhere. If you're not covered elsewhere, as many travel companies act as an agent of the tour operator, a claim against your card provider could be successful, so give it a try.

This sounds like you aren't automatically covered if you purchase a flight through a TA, even if you pay by credit card.

Another point of interest - when I phoned Tesco credit card about this Section 75 rule, I was told that I would only be covered for the amount spent on the credit card and not the whole amount! I was told this by a supervisor!

 

[LloydyLUFC]

I have just read this on Wayne's link:

The other is buying through a Travel Agent, where it is simply directing you to get a flight from an airline or package holiday from a Tour Operator. You should have ATOL protection for package holidays anyway (see Cheap Package Holidays) but flights don’t usually have protection elsewhere. If you're not covered elsewhere, as many travel companies act as an agent of the tour operator, a claim against your card provider could be successful, so give it a try.

This sounds like you aren't automatically covered if you purchase a flight through a TA, even if you pay by credit card.

Another point of interest - when I phoned Tesco credit card about this Section 75 rule, I was told that I would only be covered for the amount spent on the credit card and not the whole amount! I was told this by a supervisor!

Section 75 covers the value of the spend, not the goods! I'm in the motor trade and people pay £100 on their credit card thinking they would get the full £15,000 back if we go bust!

 

[joolz1910]

Section 75 covers the value of the spend, not the goods! I'm in the motor trade and people pay £100 on their credit card thinking they would get the full £15,000 back if we go bust!

So Tesco was right, then? I thought the '£100 covers whole transaction' sounded too good to be true. So I would only get the £100 back? Is that what you mean?

 

[paulh]

Section 75 covers the value of the spend, not the goods! I'm in the motor trade and people pay £100 on their credit card thinking they would get the full £15,000 back if we go bust!

So Tesco was right, then? I thought the '£100 covers whole transaction' sounded too good to be true. So I would only get the £100 back? Is that what you mean?

no the Law says your covered under section 75
Paul

 

[wayneg]

Another site that makes it clear you only need to pay a deposit to be covered.
"* Retail Price £400
* 10% Deposit paid when order placed = £40
* Payment method = Credit Card
* Upon delivery outstanding balance of £360.00 is paid by Cash, Cheque or Debit Card

In this circumstance you would still have the protection of Section 75"
http://www.prudentminds.com/section-75.html

 

[joolz1910]

I hope Wayne and Paulh are right as I paid for my flight deposit with my Barclaycard. It's very confusing.

 

[paulh]

I hope Wayne and Paulh are right as I paid for my flight deposit with my Barclaycard. It's very confusing.

have clamend on CC under the rules so you are ok
Paul

 

[seashoreCM]

Who is it who offers the car rental collision coverage or other protection?

Usually the entire purchase has to be put on that credit card for that credit card company to give you the protection. Check the rules for your specific credit card.

The fee that the credit company gets on every transaction, whether or not passed on to you in the form of a travel agent or other surcharge, finances the various claims that come in to the credit card company for protection and that the credit company hopes these claims are infrequent.

 

[joolz1910]

have clamend on CC under the rules so you are ok
Paul

I phoned Barclaycard and they confirmed this. I think they thought I intended to defraud them.

 

[Lizzybear]

Who is it who offers the car rental collision coverage or other protection?

Usually the entire purchase has to be put on that credit card for that credit card company to give you the protection. Check the rules for your specific credit card.

The fee that the credit company gets on every transaction, whether or not passed on to you in the form of a travel agent or other surcharge, finances the various claims that come in to the credit card company for protection and that the credit company hopes these claims are infrequent.

There is legislation in the UK that covers all credit card purchases regardless of the bank/provider

 

[wayneg]

Usually the entire purchase has to be put on that credit card for that credit card company to give you the protection. Check the rules for your specific credit card.

No idea about US rules and regs for credit cards but here in the UK we have The Consumer Credit Act 1974 where you can claim under section 75 the credit card is held responsible for the debt even if only a deposit is paid.

A template letter here if anyone needs to print and claim http://www.consumerdirect.gov.uk/after_you_buy/making-complaint/template-letters/consumer_credit/

Debit cards are not covered under this act but banks have a 'chargeback' procedure operated by members of the Visa and Mastercard schemes. Still possible to reclaim a loss thru this but not as clearcut as a credit card.

 

[wayneg]

There is legislation in the UK that covers all credit card purchases regardless of the bank/provider

Sorry I just repeated this, I posted before seeing your post on the next page

 

[paulh]

Debit cards are not covered under this act but banks have a 'chargeback' procedure operated by members of the Visa and Mastercard schemes. Still possible to reclaim a loss thru this but not as clearcut as a credit card.

some banks cover visa DD cards as a matter of curtsy, thats why i thought your covered under it, were with santander and nationwide and they both cover DD visa isued cards
Paul

 

[Lizzybear]

Sorry I just repeated this, I posted before seeing your post on the next page

No worries, you explained it better than me anyway