Company refusing credit card payments - would this put you off making a purchase for £2000+?

[00982ruser]

I have had a quote from a company for some work in my home, which I was planning to accept. The quote is for £2000+, and the company has asked for a 50% deposit to be paid by bank transfer.

Just wondering how other mumsnetters would feel about this? I usually make big purchases on my credit card because of the consumer protection you get with card payments, however the company does not accept credit cards. I feel a bit reluctant to transfer this money as I have not dealt with this company before (they were recommended to me by another business, so not a personal recommendation as such).

Am I being over cautious, or should I go back to the drawing board and start looking for another contractor?

I am talking about credit cards not debit cards. I didn’t mention debit cards. The fruit and veg stall at my local market takes credit cards.

It’s often the way with those type of businesses but I would be cautious as well, I’ve been stung before when a so called reputable tradesman disappeared after I transferred money over so I said I would never do that again before work has been done

Not much help but we had the same when buying a roller garage door. We did the 50% transfer then were so worried for about 6 weeks that they wouldn’t show up to fit it. All was fine but I still remember how worried I was between paying deposit and them doing the job I don’t think I’d do it again

Use PayPal

PayPal doe not cover custom made items (ie: a door) or anything you buy in person.

I paid bank transfer for a door recently but he told me to send it after work was completed and I was happy so no risk .

i bought carpet /flooring recently all was via credit card, except the fitting which was bank transfer but after the job was finished and I was happy

@00982ruser
Like another user said, I bought a car earlier in the year and they wouldn't accept card payments over a certain amount due to the high charges.

A 50% deposit does sound a bit steep tbh. A smaller deposit and possibly a payment to cover materials should suffice.

Might not be relevant here given the purchase, but if you want to pay by CC to protect your purchase you can pay as little or as much as you want on the CC i.e. even 1 pence and still be protected under CC rights.

I wouldn't accept it, using a credit card gives you the ability to claim the money back via the credit card company, if anything goes wrong. Although you are covered by the consumer rights act of 2015, it's much harder to get the money back, if you pay by direct bank transfer, cash or debit card!

I wouldn’t deal with any company that wants 50% up front.

Quick update - the supplier has been in contact to say they have a shop (different company name) which can accept a credit card payment. Does this option sound OK? The first company name is on all the correspondence, quote, email address etc, but I have an email chain from the first company offering this payment option.

(Maybe over thinking this now)

You should really be looking for customer recommendations.

But I would never hand over 1k without a contract, stipulating an agreement of terms - to cover both you and the contractor.

And make sure it stipulates both a start and finish date and what's included.

The only time it's ever got uncomfortable with a contractor, was when he wanted to finish the kitchen installation a day early and give a discount for a cooker hood not being installed.

He wasn't talking to a newborn.

It is impossible to get tradespeople in for a "small job" because it's not worth the travel and time and expense.

I gave him an extra 24 hours. He found someone to finish the job.

Always get an agreement in writing.

OP I work for a bank, do not under any circumstances pay for work via bank transfer unless the work is completed to a satisfactory standard. When making a bank transfer, there’s generally a little box you click on the app when making a payment. This box essentially says “I am in agreement this person deserves this money and am happy to hand it over” (and more specifically that you’re happy with the work you’ve had done if you select ‘building work’ as the option for what the payment is for). If this work is then not carried out, or carried out poorly, you don’t have much of a leg to stand on. You can still dispute with the bank, but it’s so hard to get money back that was made via bank transfer for this reason and it also means the bank is much more likely to say “well we tried but they didn’t want to give the money back and you agreed to send it so tough luck”. I can’t stress enough how important it is to not do this, unless they’re willing to accept a menial deposit until the work is complete at the right standard. Or go with the other option you mentioned of paying an alternate way via credit card (much easier to dispute/get money back).

I recently got my windows and new door. I paid half up front and then the rest on completion. I used a small local form but they do accept credit cards so I used that and transferred the cash when my bill came to pay it off as I had saved up. But I do appreciate that not all local tradespeople take cards. My mum recently got a new kitchen and it was all done by bank transfer. She paid up front for the kitchen units but was actually allowed to call the trade warehouse to pay them by card. She then paid the rest by bank transfer.

Most companies that provide services won't accept a credit card. They can be cancelled right after a transaction but wouldn't show up as a cancelled transaction for a number of days/weeks.
Obviously a debit card transaction takes longer to cancel and flags up pretty quickly

No your not being unreasonable tell them you can't afford to pay it if not on card see what happens then.... have you done your homework on the company?? Searched Google reviews, searched fb etc?

The supplier as in the company supplying the door? You won't be covered by your credit card company for the work if that's the case but I'd say this is acceptable as you have protection on the actual door and you can pay for the fitting once your happy with the work

Sorry my update wasn’t very clear!

The original company (who have quoted to supply & fit the door, & asked for a 50% deposit via bank transfer) have offered to take a credit card payment via their shop which accepts credit cards, however the shop has a different name.

All my quotes and correspondence are with the original company. I am wondering if that would be an issue if I had to use the section 75 protection (i.e. quote & spec from company A, payment made to company B).

Its all getting a bit complicated!

Yep don't use ANY COMPANY who refuses credit cards. You have to question why. Only a dodgy company would refuse in most cases.

My company is similar. Our deposit is less at 25% but we don’t take credit cards.

That's just nonsense, plenty of reputable businesses choose not to accept credit cards, have you actually read the replies to the thread?

I have never paid a trades person by card. Didn't even know that was a thing. They invoice and I pay by bank transfer. If it is to fit a door, they will need yo pay for the door up front, so a deposit is reasonable. They will be stuck with ha door if the customer ghosts them otherwise.

When I bought my car, I could put up to £1k on a credit card and the rest by debit card. That is from a main dealer.

Can you share the name of the company? I once had to make a s75 claim against a window supplier. Turns out the bloke had closed and reopened more than once using different company names. I still keep an eye on him/Google reviews etc and noticed that he now categorically won’t take credit cards. I wonder if it is because people have made claims. Just do your due diligence - check all the directors names on companies house to ensure that aren’t listed across several firms and check all reviews online.

Are the products FENSA protected?

I think it's strange personally, I would see it as a red flag. I run a small business with my husband, bespoke jewellery so a lot of engagement rings etc. People can pay us by bank transfer if they want, but I always offer card as I like my own large purchases to go on card for protection. Also it's totally understandable that people may need credit for large purchases. Businesses should be factoring this into their pricing anyway. If it were me I wouldn't go with them, as I would then be worrying about what could happen if anything goes wrong

Never pay by bank transfer. You have zero cover. I found this out the hard way and lost nearly £6K.
Recently I was asked to pay a deposit and said it’s a deal breaker if I can’t pay in at least debit card (you still have some protection on a debit card). They eventually agreed to debit card and then never did the work. The bank refunded me.