Supplier only accepts debit card

[oliverstoychest]

Simple question really, can a business, in this case a wholesale supplier of goods refuse to take a Credit card but accept payment via Debit card?

We placed a large order with the company to open the account. However my plan of them taking credit card so we had better control of paying back the money, were stalled when they said debit card only. (I should have checked beforehand, but seeing all my other suppliers accept it, presumed they would.)

 

[Mr D]

Judging by the suppliers who have that restriction now, yes they can do that.
There are some who won't accept card payments at all.

 

[estwig]

Their goods, their terms, not anyone else's.

 

[obscure]

+1 to the above. Companies are free to accept (or not accept) whatever payment methods they want.

 

[Chris Ashdown]

Why should they take the risk with either credit cards or accounts, you want to deal with them , they want guaranteed money

 

[iDigLocal]

B2B relationships can be very much determined by those companies involved. It's always best to get a copy of their T&Cs before you create an account with them and it is always possible to negotiate the terms of them.

But a company is free to choose what form of payment they are willing to accept.

 

[Bainzee]

I agree with all of the above

I costs the supplier more to accept credit card over debit card

 

[Tigris]

We have to refuse credit cards now in my day job. We used to add a surcharge but are no longer allowed to do so.

 

[Nochexman]

We have to refuse credit cards now in my day job. We used to add a surcharge but are no longer allowed to do so.

Sorry if this sounds a little petty, but you can still charge a surcharge for taking payments - you just can't discriminate against credit cards.

I'll get me coat...

 

[Paul Kelly ICHYB]

Peter,

isn't that now called an 'administration' charge?

 

[Nochexman]

Peter,

isn't that now called an 'administration' charge?

Yes, you could indeed call it that. Or you could just incorporate the cost of processing payments - whatever the method of payment - and apply them as a cost of sale to your products.

[Finishes putting coat on]

 

[Tigris]

Sorry if this sounds a little petty, but you can still charge a surcharge for taking payments - you just can't discriminate against credit cards.

I'll get me coat...

Not my idea, I just work here. I will join you and get my coat

We get charged for credit cards so have been told to pass the charge on but as of early this year we are not allowed to so we just have to refuse. The other option is for us to put all our prices up by the surcharge %/

 

[Mr D]

Not my idea, I just work here. I will join you and get my coat

We get charged for credit cards so have been told to pass the charge on but as of early this year we are not allowed to so we just have to refuse. The other option is for us to put all our prices up by the surcharge %/

Or to put your prices up by what the total charge you would be paying extra. So if the total charge comes to say £65 extra and you have 1000 products then spread that extra £65 between your products. As I'm sure you do anyway when any other annual cost increases.

 

[paulears]

I would have thought that you simply offer similar terms to your competitors to allow you to remain in the game. Blanket refusing credit cards because of a charge seems a great move, if you can afford to turn away that business to somebody else, who might swallow the fee? When I start to deal with a new supplier, I decide to accept or decline their terms and conditions. If I don't like them, I have the choice of walking away, but that's it. One of my suppliers will offer 30 day terms but I must pay by bank transfer. I can live with this, even though it makes processing their invoices more inconvenient. 30 day terms, then the 30 days from the credit card company would be lovely - but it isn't going to happen.

 

[Stedurham]

If you pay on credit card the card companies equally liable for any issues aswell so some people won’t acceot credit cards at all as they can take the payment back out of their account

 

[Furqan721]

Actually credit card payments are not guaranteed money. So its the supplier's and buyer mutual understanding. What suppliers here in Pakistan do, they are bound to use a wire transfer for big payments. Rather imports or exports, the legal way is always a bank transfer because Bank wire transfer is the safest and legal way for big payments.

After the payment done in advance, bank will keep a record of the total invoice of products you are sending to your customer.

 

[CustomLED]

Many companies only accept debit card, Costco is a good example. I have stopped accepting American Express due to thier high charges.

 

[Talay]

Many companies only accept debit card, Costco is a good example. I have stopped accepting American Express due to thier high charges.

Really ? Costco take Amex of course I wouldn't know if they didn't take Visa but I'd doubt it.

So you've stopped taking Amex now that they have more than cut their rates in half ? Seriously ? We were on 1.9% and are now on 0.9% and we do very little volume. They had to cut rates now credit card rates are so low (relatively).

 

[CustomLED]

I still get charged 1.75% for Amex.

I'm not sure as I don't have a credit card but my step dad tried to buy something about 2 years ago and they girl on the till said 'we only take debit cards' when he put his credit card in the machine, I have no idea what type but know it wasn't Amex.

 

[Dory]

Costco only take debit cards or Amex as there own credit card for members is run by them. Businesses can choose whatever payment method they will or will not take. Credit card fees are higher than debit card fees for larger transactions. Businesses can still charge a surcharge for paying by credit card to cover the fee if they want. Its only transactions to the public where this is not allowed. But you can always put up all your prices by a small percent to cover it if a lot of your customers pay by credit card. then its not an issue and you wont be out of pocket

 

[RjMaan]

Actually, it depends on the terms and condition of merchant plus the business relationship. Those who have strong relationship with merchant can use credit cards while others use debit card only.

 

[kerching]

When using a debit card, what protection does the buyer have if the seller fails to deliver?

 

[Nochexman]

When using a debit card, what protection does the buyer have if the seller fails to deliver?

Not my area of expertise, but I believe the protection is basically the same as with a credit card. Always contact the seller before going to the card issuer.

 

[youngtrepreneur]

Business can dictate their own payment terms and processes.

For example I only accept bank transfers. I don't take cards, cash or cheques.

 

[Scalloway]

When using a debit card, what protection does the buyer have if the seller fails to deliver?

There are similar, but not identical, protections.

https://www.moneysavingexpert.com/shopping/visa-mastercard-chargeback

The key difference is that when you complain under Section 75, the credit card company itself is legally – and jointly – liable with a retailer for purchases between £100 and £30,000, so by law you don't even have to try the retailer first.

 

[kernow24]

We have to refuse credit cards now in my day job. We used to add a surcharge but are no longer allowed to do so.

over the last year or so you should also have had costs reduced to around 0.5% if your margins are that low that accepting cards makes them not profitable you should drop the product.

 

[Mr D]

There are similar, but not identical, protections.

https://www.moneysavingexpert.com/shopping/visa-mastercard-chargeback

And an advantage of chargeback for the card user is that its not the retailer / recipient of the money deciding the result. Its the card issuer.
Which really annoys some retailers.