Credit card surcharges

[HotGlueGun]

Can anyone give me some advice on a situation I have with my building company? Have had a few issues with them recently (posted on here about them) which are now largely resolved. I'm at the stage where I need to make the next payment instalment with work provisionally scheduled to start next week. I paid the initial instalment (£5k) by credit card and wish to do the same for all subsequent instalments so that I can benefit from the additional protections that paying by CC provides. The company are now saying that I cannot pay by credit card but that if I absolutely insist, there will be a 3% charge. My understanding is that credit card surcharges were abolished in 2018 and so I have queried this. I have a contract with them which does not mention additional credit card charges and none were mentioned (or paid) when I made the initial payment. I am nervous about paying anything via bank transfer and want to pay by credit card but not pay the 3%. Is anyone familiar with this area of the law? Pretty sure they can't do this but when I've raised it with them, they won't budge. I wouldn't have entered into the contract had I not been able to pay by credit card.

You're correct.

Thanks @collaborate. They are now saying that subsequent payments will be made on completion of the goods/ services and so that the credit card protection will not be required... is this correct? What if they go bust mid-project? Can I claim what I have paid already back via my CC company? I guess I'm seeking to protect myself in the unlikely scenario that I'd then have to engage another builder who may not be happy to take on a job part-completed.

Is it a personal card or a business card?

Even if you only pay part by credit card then is the full amount not protected? Do you have a quote giving the full price to be paid?

www.equifax.co.uk/resources/money_management/credit-and-debit-card-protection.html

If you pay any part of the bill by credit card the full amount is protected. However, if the total is over £30,000 it won't be protected even if you pay it all by credit card.

Ah ok, thanks @prh47bridge ... the total contract is for £48k, paid in instalments. So from what you've said and what I've read, I wouldn't be covered anyway? Bummer.

I'm afraid not. Sorry.

Why do you think the builder should take a 3% hit because you pay by card?

If he had known up front everything was to be paid by card he could have set the price accordingly.

Why do you think the builder should take a 3% hit because you pay by card

Perhaps because that is the law.

If he had known up front everything was to be paid by card he could have set the price accordingly

In which case he may have been breaking the law. If he charged a higher price because the OP planned to pay by card it is certainly arguable that this amounts to charging a fee for using a card, which is illegal.

Out of interest how do airlines manage to charge extra for paying by credit card if it’s illegal?

Airlines no longer charge more for paying by credit card, at least EasyJet don't anymore.

@cdtaylornats I suggest you familiarise yourself with the law in this area. Traders are no longer able to charge for consumers paying by credit card in the vast majority of cases. And certainly are acting illegally if they don't state any charges upfront before the customer enters into a fixed price contract with them, as I have done so.

Out of interest how do airlines manage to charge extra for paying by credit card if it’s illegal

An airline can only charge a fee if their payment service provider is not located in an EU state. So a non-EU airline using their local payment service provider can charge a fee, but an EU airline is likely to use an EU-based payment service provider so cannot charge a fee.

A year after the regulations were introduced the BBC found a number of businesses, including a university and the finance arm of a car manufacturer, continuing to charge fees illegally. The regulations have now been in place a little over 2 years but it wouldn't surprise me to find that there are still many businesses that haven't caught up.

That makes sense - it was an Emirates flight so presumably a non-EU psp.