Fees to use credit cards

**Frangipani Lou** · July 18th, 2014, 07:29 PM

We are in the process of buying a car and wanted to use our visa debit card. The car dealership wants to charge a 2% fee on the transaction. Now I don't mind the fee sometimes but they would score about $200 extra for nothing!
Is it legal to do this on a large purchase like car car please?

**PumpkinZulu** · July 18th, 2014, 07:34 PM

Yeah, they tried that with us too. DH is a bookkeeper and nearly finished his Accounting degree, he told the finance guy to jump lol. It was either, we buy this car off of you without the charge, or we go elsewhere. We didn't even want to use a CC, but it was a business loan paid onto a business CC, so we had to. If you don't have to use the CC (as in, you have the cash) I'd go another route.

**Frangipani Lou** · July 18th, 2014, 08:32 PM

Thanks PZ. I think we will do 1/2 eftpos and 1/2 cash. I had it organized to do eftpos with 2 cards but I can't remember the pin for one of them!

**OceanPrincess** · July 19th, 2014, 01:29 AM

Try and challenge it, we have done so before on big purchases. It's kind of rubbish - I can't see how it's different to Eftpos really. Especially now with Visa debit. Push them on it.

**Marley&Me** · July 19th, 2014, 03:16 PM

Yeah I would have thought the surcharge would be exempt because a debit card uses your own savings, not borrowed money.

**Frangipani Lou** · July 20th, 2014, 03:40 AM

Well we collected the car, paid some in cash, some eft credit and some eft savings and they didn't end up charging for the credit card use. Sigh. And they didn't want my old Camry as a trade in. Double sigh. First world problems.

**OceanPrincess** · July 20th, 2014, 12:02 PM

But yay for a new car!!!

**surprised** · July 20th, 2014, 04:46 PM

Yeah I would have thought the surcharge would be exempt because a debit card uses your own savings, not borrowed money.

Unfortunately for the business, they still pay the same whether it's a debit or credit card. I would rather charge the few people who do want to use credit card a bit extra to cover the bank fees, than to build it into my pricing and make everyone pay, if that makes sense?

**Frangipani Lou** · July 20th, 2014, 04:50 PM

That does make sense Surprised. However they would have scored $200 which is ridiculous and out of proportion to the cost of the transaction. The accc is looking into making changes to stop such crazy overcharging.