Debit cards don't carry the same processing fees as credit cards. Debit cards are usually a fixed fee (50p per transaction for example), credit cards are usually a percentage of the total.

In reply to a post by ian72:

I know holiday companies often charge for using a credit card. Also, buying cars in my experience they tend to only allow a small deposit on a credit card and not larger amounts.

When I brought mine last year they took the 3K deposit on Credit Card and I believe they had limit of 5K - I paid balance on debit card, however they said they were stopping taking large amounts on debit cards due to the charges were changing and it would be quite expensive on price of the car.

Edited by Kenneth (Thu 11-Jan-18 18:57:10)

In reply to a post by Kenneth:

...I paid balance on debit card, however they said they were stopping taking large amounts on debit cards due to the charges were changing and it would be quite expensive on price of the car.

Interesting, 12 months ago we made a couple of large payments using our debit card, both in excess of £40k. The organisation receiving the money didn't bat an eyelid.

A debit card payment costs very little: often about 20p. A credit card payment often costs between 1.5% and 2.5% (or more, if the retailer has a bad deal). So a £5000 credit card payment could cost them £125.00

That was my understanding, which makes the car dealer in the post I replied to perhaps being economical with the truth

Payment was last May, but Visa changed the way they charge for debit cards sometime last year to a percentage Link - though if these fees are anything to go by it sounds like a premium car sales brand penny pinching to me

Well from today I wonder what they are going to do instead of the surcharge they can no longer legally do?

Manual credits to the account of anyone who complains, every month for the next three years while they trial an accounting system change.

Click this.

In reply to a post by kasg:

Plenty still do, especially online. My local dentist charges 3% and claims they are exempt from the new rule. I'm not convinced.

I don't have a credit card anyway and tend to use cash most of the time anyway.
I am more worried about this open banking idea that some nit have decided to bring in. i thought contactless cards was bad, this open banking idea is worse.

Plenty of people spend everything on credit, myself included. The benefits of using credit card make it a no-brainer, given the free air miles, free flights, points etc that can be had.

I've spent on AMEX for the past 2 years racking up 1 companion flight ticket, a £200 amazon gift card, a free bose speaker, priority boarding on flights, free airport lounge access (free food and alcohol before flights). It's a game of swapping and changing cards, but debit is only used if they refuse creditcard, my spotify, amazon, netflix and some others even hit my CC. I also manually go into EE and pay via Credit Card before the direct debit is taken.

I consolidate all spending into YNAB an online tool & repay in full.

RE Open Banking I believe you can opt in / out.

Edited by ukhardy07 (Sat 13-Jan-18 21:52:33)