Buying Gold with credit card

[ilovesilverireallydo]

I work with a couple of well stocked dealers to bring decent coins at hopefully reasonable prices to the forum. Lately I have had a couple of people ask if they can use credit cards (as some people get cash back 1% or generous interest free periods). 

I have been speaking to one dealer and he has agreed to accept as long as the credit card fee is covered which is 0.25%. 

Is this something forum members would be interested in? 

 

[onlyroadtoheaven]

I get Avios miles with mine so yes this would certainly benefit me. Its Amex though which is not so widely accepted. 

[ilovesilverireallydo]

1 minute ago, onlyroadtoheaven said:

I get Avios miles with mine so yes this would certainly benefit me. Its Amex though which is not so widely accepted. 

Yeah Amex might be an issue. They charge really high rates which is why they arent widely adopted in the UK. 

[dicker]

Potentially....

[Derv]

I think it's a good idea. Especially for those who aren't very mobile or want something different . A welcome service .

[Paul]

Sorry to be a bearer of doom, but it is just easier all round by just price the item at +0.25%  and dont say anything about fees.  

Someone pays without credit card - bingo you've saved a little extra profit

Fees and charges for using credit cards were banned in UK back in 2018 so just save your getting into any possible hot water/legal issues 

[ZigZag]

Would always appeal to me, a bit like @onlyroadtoheaven , buy loads on a Tesco MasterCard, purely to get double Avios points; it’s free money (or rather free flights).

[DynamitesUK]

55 minutes ago, ilovesilverireallydo said:

Yeah Amex might be an issue. They charge really high rates which is why they arent widely adopted in the UK. 

I think you can still get Avios points if you are using Lloyds Credit card as i believe they use Mastercard

https://www.britishairways.com/en-gb/executive-club/collecting-avios/credit-cards/uk/lloyds

[Martlet]

35 minutes ago, Paul said:

Sorry to be a bearer of doom, but it is just easier all round by just price the item at +0.25%  and dont say anything about fees.  

Someone pays without credit card - bingo you've saved a little extra profit

Fees and charges for using credit cards were banned in UK back in 2018 so just save your getting into any possible hot water/legal issues 

I was going to mention this complication.  I have seen a number of vendors offering a discount for bank transfers...

[ilovesilverireallydo]

46 minutes ago, Paul said:

Sorry to be a bearer of doom, but it is just easier all round by just price the item at +0.25%  and dont say anything about fees.  

Someone pays without credit card - bingo you've saved a little extra profit

Fees and charges for using credit cards were banned in UK back in 2018 so just save your getting into any possible hot water/legal issues 

Thats a fair point I guess.  - about the legal thing. Need to check. 

[ilovesilverireallydo]

11 minutes ago, Martlet said:

I was going to mention this complication.  I have seen a number of vendors offering a discount for bank transfers...

thats the way we would have to do it if we ever advertised it - Would have a discount for bank transfer rather than fees for CC

[Paul]

I have a few cash back credit cards and use it where i can for bullion purchases - Nationwide Select & Aqua 

I get 0.25% cashback paid annually, not great but adds up in bits & pieces over the year.  Last year i got around £40 

Also handy to know your billing dates of your cards, have a half dozen credit cards  billing dates 2nd   7th   12th  18th   23rd and 30th across the month

Say you fancied the Elton John gold coin yesterday (6th) but didn't quite have the funds, you would use your credit card will billing date 2nd so you have the remainder of the month until 2nd of August until your next statement is produced and then your few more weeks until payment needs to be made  or Royal Mint refunding your credit card for QC issues of your purchase 😁😆  Had you used your card from the 12th billing date, you are charged much sooner  

Also nice to have the security back up of credit cards if anything goes south with your purchase

[47Ag79Au78Pt]

On 07/07/2020 at 10:55, Paul said:

Also nice to have the security back up of credit cards if anything goes south with your purchase

That’s why I prefer to use C’cards; ‘cause of the legal cover by the Consumer Credit Act (UK) if a purchase goes Pete Tong.

PayPal is second best (their claims dept’ are nowhere near as efficient and you rarely talk to a person.

Bank transfers = buyer beware (as far as UK law goes.) The only caveat to this would to use a trusted intermediary - who would ultimately fulfil the role of dealer\agent.

[ilovesilverireallydo]

So they would facilitate and absorb the credit card charges. So no issue there. 

[Tattoedamat]

Only issue I see is the fact that people might overstretch themselves but that's just down to the willpower and commonsense of the buyer.

[Airhead]

When I am in the market for a purchase the funds are “locked and loaded” with immediate availability. The worse thing to my mind is either frantically scraping bits of fiat into a pile or to be forced to make a leveraged purchase.  

[Augustus1]

for me a good price i am prepared to pay or a good deal is a good deal, no matter how i pay , so if thats a CC then fine , with CC deals such as " cash back" , " points" or "intrest free periods" etc always enhance the deal, so yes i can see circumstances were i would like to pay by CC.

dean.m

[Grinder]

Don't you mean 2.5% ?

Most online dealers in the US charge 3.5-4% upcharge for CC use. Or should I say discount for non CC use

That is a lot when you buy 1 oz. gold coins or quantities  of silver

[ilovesilverireallydo]

24 minutes ago, Grinder said:

Don't you mean 2.5% ?

Most online dealers in the US charge 3.5-4% upcharge for CC use. Or should I say discount for non CC use

That is a lot when you buy 1 oz. gold coins or quantities  of silver

No we get charged 0.25% as it’s a merchant bank

[Melon]

On 07/07/2020 at 10:46, ilovesilverireallydo said:

thats the way we would have to do it if we ever advertised it - Would have a discount for bank transfer rather than fees for CC

Would be interesting to see if that held up in a court. It's effectively the same thing, you charge more for one payment option than the other. Not that I care, just saying it seems questionable. 

 

[Grinder]

4 hours ago, ilovesilverireallydo said:

No we get charged 0.25% as it’s a merchant bank

Thank you for the clarification. I learn something everyday. At that percentage I would use the CC  lot more.

[ilovesilverireallydo]

7 hours ago, Melon said:

Would be interesting to see if that held up in a court. It's effectively the same thing, you charge more for one payment option than the other. Not that I care, just saying it seems questionable. 

 

Yeah I doubted it too, so if you see, I clarified that we wouldn’t, we would absorb the difference. 

[MrTozla]

YES!

Let me know if something works out.