Using my own card machine to transfer money from credit card to bank account.

[Dan324st]

Hi,
I have been trying to arrange finance to buy a new van for my business, and have found a van that I want to buy. Only problem is, the dealer doesn't seem keen on me using my credit cards for the purchase, and also has no chip and pin service at the moment until next week.
He also said that If i want to use my credit card, it will cost me an extra 3% card fee.
I would much rather use my credit cards as I have enough credit to buy the van and pay 0% interest over 2.5 years.

So... I was wondering, If I was to pay myself the £7000 required to buy the van, through my own card machine, at my shop. I would then only pay 0.9% for the transaction, and have the money in my bank account the next day, available to use for a balance transfer for the van.

Is there any legal/financial complication with this plan, or is this totally a fine way to use my card machine?
And is there anything I am missing in this idea, that would make it a bad idea otherwise?

Greatly appreciate any input on this matter
Thanks

 

[MartinCivil]

I would imagine that this could look like a £7000 sale to yourself on your accounts, your Accountant will have to advise whether you can do this or whether you will end up paying corporation tax on the profit this 'sale' attracts

 

[Dan324st]

Hmm I will ask him. Hopefully it won't, as although I would be receiving the money, I would also be simultaneously spending it, so it should cancel itself out. We aren't Ltd, so hopefully that will make it less complicated.
Thanks

 

[AllUpHere]

That has to be against the terms and conditions of your merchant account surely.

 

[Dan324st]

Well I just got off the phone with my provider and they don't seem to have a problem with it neither does my accountant, so seemingly good to go!

 

[Nochexman]

Well I just got off the phone with my provider and they don't seem to have a problem with it neither does my accountant, so seemingly good to go!

Who is your 'provider'? Do they acquire the transaction you are proposing to undertake?

 

[Ally Maxwell]

That has to be against the terms and conditions of your merchant account surely.

This,. It's a good few years since I last had a card merchant account (Lloyds Cardnet) but processing transactions using your own card was strictly forbidden.

 

[Dan324st]

@Nochexman , sorry I don't understand the question?
@Ally Maxwell , I was half expecting it to be this way, however after speaking with them, they told me it would be fine, and have left a note on my account to say so, so can't see what/where and issue could arise.
Thanks all for the input.

 

[Mr D]

Card company gets the fees from the transaction, they know the OP isn't going to declare fraud on his own transaction - cannot see a downside for merchant processor.

 

[KAC]

This,. It's a good few years since I last had a card merchant account (Lloyds Cardnet) but processing transactions using your own card was strictly forbidden.

Similarly with Barclaycard again many years ago. But if he has it confirmed by email or in writing from his provider .......... Things must have changed

 

[Nochexman]

@Nochexman , sorry I don't understand the question?

That is OK.

Does the company that is your provider actually process your payments?

If they don't then they don't really care what you do.

However, if your payments are being processed by a bank, for example, then as others have suggested, they will take a very different view of what you are doing!

Who is your provider?

 

[lukus]

Presumably you mean generating a bill through your company's merchant account and paying with your personal credit card to create a deposit of 7000? which you would then spend for a personal vehicle?

However it will come up as purchase of goods through your accounts and I would suspect HMRC would treat it as taxable profits on that basis alone should they check?

Otherwise, if it's as you would claim - a means of transferring cash, you would be avoiding your CC cash withdraw limits and charges which would be against your CC terms, since a cash withdraw through a credit card has specific terms (fees and limits) and the transaction wouldn't have properly been applied thus being against your merchant terms.

So i would suspect, you're bordering on fraud unless you raise it as a cash withdraw, in which case your CC would impose your limit (such as £500) and also charge you more than that 3% I presume.