A question on Alan Photo
- Thread starter Treon
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Final_depth
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Alan Photo accept credit card installment for UOB and DBS.
6% interest on top of price quoted
6% interest on top of price quoted
you know, some shops like to quote more % (say 5-6%) when you pay in Credit Card installments rather than one off (usually everyone knows 3%)... but last time I checked with someone I know and they tell me that VISA/Mastercard or the bank doesn't charge more if you go one-off or in installments... donno if anyone working for the credit card companies can confirm... so that would mean that the few % extra charged to the shop will go to their profit margin... *wonder*
I guess the additional 2-3% is to cover their cost of capital. After all if you had paid them in full they could have gotten some interest payments from keeping the money in the bank. So now they charge you the interest instead. Shops that provide interest free installments either have worked the cost into their price or they have gotten a deal from the agent that allows them to pay later.
clubgrit
Senior Member
I have a shop, and we accept credit card installments through UOB, DBS, POSB.
The bank charges us 5% for every installment transaction. That's one way they earn money, nothing is free. DBS/POSB can review transactions and charge less, maybe 4%, if volume is high (usually shops like Courts, Best, etc.). For non-installment credit card transactions, it's 2.5% or 3% for Amex. That's why Amex is not popular to many shops.
The bank charges us 5% for every installment transaction. That's one way they earn money, nothing is free. DBS/POSB can review transactions and charge less, maybe 4%, if volume is high (usually shops like Courts, Best, etc.). For non-installment credit card transactions, it's 2.5% or 3% for Amex. That's why Amex is not popular to many shops.
Galdor
Senior Member
For Visa & Mastercard, usually the card issuer will charge the merchants (shops) 3% for every credit card transaction. That's why when you want to charge your travel expenses at travel agents, they'll ask you to pay the 3%. But if it's a tie up with the Bank (0% installments), then there should be no extra cost as the Banks are actually offering this to attract their card holders to use their card vs using their competitor's card for their purchases. More usage on the card means more revenue for the Bank as the card issuer will be giving a portion of the 3% charge back to the Bank. If I'm not wrong, Platinum Cards will be charged higher by the card issuers. That's why more Banks are issuing Platinum Cards nowadays.
Hoky
New Member
I think platinum and non platinum cards got no difference lar... :nono:
I have both Citibank Platinum and Titanum cards and I charged them for credit card instalments and non instalment plans... I still get charged 2% for Visa / Mastercard and 3% for AMEX..
Yes, MS Color also have the credit card installment scheme. I bought a few items using this scheme.
Galdor
Senior Member
For consumers, it doesn't make any difference as Visa and Mastercard still charge the same amount; usually it's 2%. It's the rebates given back to the Banks from these card company's that's different and that's where the Banks earn. The more you spend using a particular card, the more the Bank will earn.
I think alot of credit card company now accepts a 2-3% 'admin' charge for paying your bulk purchase in installments. If Alan accept credit card, pay with it, then call your card company to arrange for this instalment type.
Maybe you should call your bank and check with them first........ Cheers!
Maybe you should call your bank and check with them first........ Cheers!
V
vince123123
Guest
That's where you are wrong. The banks pay the shops the full price, and then takes the money back from you.
V
vince123123
Guest
I heard though, that it is illegal for shops to charge their customers the extra 3% - maybe someone working in a credit card company (ie VISA/MASTER) can confirm.
It's not illegal, but it's breach of contract with the credit card companies as they agreed in their contracts to a no surcharge policy.
V
vince123123
Guest
Yea, I meant illegal as in a breach of contract, not criminal illegality.
Are you confirming that there is such a no-surcharge term in the contract?
Are you confirming that there is such a no-surcharge term in the contract?
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