Paying Credit Card Commissions

Discussion in 'Motorhome Chat' started by Turakina NZ, Oct 4, 2009.

  1. Turakina NZ

    Turakina NZ Read Only Funster

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    I rented a motorhome in New Zealand from Maui/Britz earlier this year.

    I was charged a "Credit Charge Commission" - it was clearly stated on the invoice/receipt as such.

    After several months of complaints and letters I eventually received a full refund.

    I would like to hear from AVERYONE who has rented a campervan and has also been charged a credit card commission.

    thanks,
    Jon
    info[at]Turakina.com
     
  2. moandick

    moandick Read Only Funster

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    Hi Jon

    In the UK it is quite common for us to have to pay a commission for the priviledge of using a credit card.

    I sell a book to a customer for cash and I get £1 for it BUT if I sell that £1 book to credit card customer I only get 97 pence for it - The credit card company charges me 3% for the service. (for example)

    Now being a dealer, I have no wish to lose my 3 pence profit so if you want to buy my book on a credit card then I have to charge you £1.03 in order to retain my profit margin.

    After all, why should I lose money when it is you who has the convenience of not carrying cash, of having that credit card accepted at millions of outlets around the World and of having a certain amount of insurance against loss and damage of the item you bought.
     
  3. Pikey Pete

    Pikey Pete Read Only Funster

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    Looking at it another way, the Credit Card Companies have allowed you as, a dealer access (no pun intended) to a new customer base and it is that you are paying for.
    I don't deal with traders who charge the credit card commission to the customer, unless I have no choice.

    pete:Cool:
     
  4. Geo

    Geo Trader - Funster

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    We have never made a charge for credit card payments, based on the fact most of our customers couldn't afford to have the work done, were it not for the card, and our customer base increased as a direct result of excepting cards.
    Check your credit card agreement Mo, ours forbids making such a charge, and I suspect they all do
    I believe it was travel agents who started the practise years ago

    Where it does fall flat on its face is when expensive parts are used with a small labour charge,it can then mean Ive paid you to fit the part:Eeek:
    but of course all work has an element of charge to cover all overheads inc card charges, so it is the customer who pays in the end:RollEyes:
    Geo
     
  5. moandick

    moandick Read Only Funster

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    We could play tennis with this argument forever - but it is quite simple really - you as the customer have the choice - if you pay by cheque, you pay the bank to honour that cheque - if you pay by credit card, I pay the credit card company to let you do so - if you pay by cash - neither of us loses out - so let us all go back to a cash payment status! :thumb:
     
  6. sedge

    sedge Funster

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    Well, have to say the only time I recall paying by CC this year (because it doesn't apply to DC) and being charged was by P&O, who slap a £2 surcharge on for CC internet bookings. Even with that, twas still one heckuvalot cheaper than anyone else, so, although I do object in principle of course, one's principles tend to be somewhat bendable under certain circs, don't they? LOL

    We would normally use a DC for such but for some reason I was thinking 'Internet purchase, must use CC' at the time (and which would have served our SIL well, had he done so, when booking his Speed-ferry for this August, last December or January!)

    It boils down to do you want to buy that item from that trader within their timescale, or could you get it cheaper (overall) elsewhere? Cheques etc can and do bounce. With CC the trader gets his dosh in a timely fashion thus enabling him to keep on top of his Credit Control and not have to throw time and effort at least at it, money too in lots of cases. I can see it from both ways.
     
  7. pappajohn

    pappajohn Funster Life Member

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    what i have seen in many local independant shops is a minimum CC transaction amount.
    say, min of £10 or a 50p charge applies.

    this either encourages a cash payment or loss of sale......pot luck i suppose.
     
  8. GJH

    GJH Funster Life Member

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    I used to think that was the case as well but it can't be as there are organisations which levy a charge.

    I know of at least one family history society which adds a percentage for anyone using a credit card to pay for membership in order to recover the charge levied by the CC company. As most (if not all) people using the facility are overseas it is actually cheaper for them than paying bank charges to obtain a Sterling cheque.

    The DVLA adds an extra charge for people who wish to car tax by credit card. Their explanation is:
    In the case of the FHS, it means that the rest of the membership don't have to subsidise the few who want the facility and in the case of the DVLA it means that a similar subsidy does not have to be met from other drivers/general taxation.

    Graham
     
  9. vwalan

    vwalan Funster

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    i use a cc as much as possible .always make sure i have enough in the account to allow direct debit to pay the cc .its like having as much as 6 weeks free interest. the real problem is if you pay with cc and cant pay ,then you get hit hard.if you do it right you can save a fortune. never borrow what you cant pay back. never pay to use a cc .never draw cash in a different bank either using a cc .
     
  10. vwalan

    vwalan Funster

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    hi graham, if you pay at the post office they get paid for handling. its all a con. i say pay at post office n keep your post office open. we should be getting a discount if we contact dvla direct not penalised. again its a corrupt system.
     
  11. GJH

    GJH Funster Life Member

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    There will also be a cost associated with maintaining an on-line payment system Alan - though I have no idea how much it is compared to the PO handling charges.

    It is also not possible to pay for car tax at the PO by credit card so, to that extent, allowing payment by credit card on-line is an extra service (with an extra cost to DVLA (i.e. the taxpayer)) available to the people who want it.

    I agree about keeping post offices open. I use a couple close to us and one a bit further away regularly for posting out orders.

    Graham
     
  12. Tony Lee

    Tony Lee Read Only Funster

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    Australia and likely NZ too, introduced laws that allowed merchants to add a fee to purchases made on Credit Cards. This was included as part of a deal to deregulate the system. Many government, telco and utility organisations offer a choice of payment methods and the credit card option is the only one to attract the service fee. We struck it a couple of times in europe - particularly Germany where it was claimed the merchant fee was 3%.

    I see it as fair. You are getting up to 55 days interest free credit and the merchant is paying 1 or 2% for the privilege. The ones who used to annoy me when I ran a business were the account customers who waited 2 months to pay their 30-day account and then wanted to pay by credit card.
     
  13. vwalan

    vwalan Funster

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    hi tony , and the bigger they are the more they want to do it. thats how i learnt to do it. the secret is to have sold it all for cash before you have payed for it make double interest .course these days you can transfer it to another card and make even more n more interest. play them at there own game . you dont get rich working . thats against my normal belief i know.
     
  14. Douglas

    Douglas Read Only Funster

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    Can you tell me, under what name you trade so that I can avoid being charged the commision by you?

    Doug...
     
  15. moandick

    moandick Read Only Funster

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    I refer to my previous post...

    if you pay by cheque, you pay the bank to honour that cheque - if you pay by credit card, I pay the credit card company to let you do so - if you pay by cash - neither of us loses out - so let us all go back to a cash payment status! :thumb:
    __________________
    Mo and Dick ​


    I actually don't charge a commission - but in the proper "British" way of things, I was simply trying to point out that there are always two sides to every story.
     
    Last edited: Oct 5, 2009
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