Credit Card question

[TooNice]

I vaguely remember reading that it is safer to shop online with a Credit card, as they offer some form of protection.

1. Am I remember correctly?
2. If that is the case, then, is the protection offered by Visa/Master Card, or the company issueing the card?
3. How much protection do I get?

There is two reasons I am asking this now. First, I am about to buy something from a retailer I've never used before (Lambda Tek), and they do offer 'Credit back' if I use a Debit card. Still, given that I've not any experience dealing with them before, I am wondering if it is not safer to use a Credit Card.

Secondly, as noted in my last thread, I am interested in buying a new watch, and I found that it is significantly cheaper online. I am not talking anything dodgy, like 10% of retail price, but between 30-40% off retail price, which presents a very significant saving, but does not spell 'scam' to me yet (still, the company hasn't been around very long which is another concern for me). I would like to know if, in the event that the product received is not as expected (fake/not new etc.), would I be protected?

Thanks.

[herulach]

Yes you are protected, up to a pretty large value, definately more than youre likely to spend in anyone go. The protection is provided by the issuer (MBNA/Your Bank etc) under the consumer credit act. And extends for 6 weeks after youve bought the item in case of fault, youre also covered for non-delivery or liquidation of the company.

Some cards will also cover you against theft for a short period, but dont hold me to that because its not universal (barclaycard do for 3 months)

Hope that helps, and obviously, check the Ts&Cs first.

[mcmiller]

i also i believe that as the money is not your own and you get ripped off like they send you a casio watch instead of a rolex you can tell the cc to get there money back, the shop gets nothing, or if they ignore that then you can refuse to pay the credit card company.
I also use cc online so i dont have to worry, any probs get the cc involved if there not interested i dont pay them

[TheAnimus]

VISA also have their own volentary rules of conduct. I had a paypal issue (buyer never sent me the item, no proof of postage paypal said their where unable to recover the funds) It was delt with very swiftly and very professionally.

Also some cards have concierge service, which pretty much runs to finding things on ebay from what i hear. But they did get the guy his Wii. God knows how much he paid.

Myself thou, paying £500 a year for that is stupid, paying any yearly fee for a credit card is stupid. Even if it is black.

[Funkstar]

in addition to what herulach said, there is usually a minimum amount of cover offered my the card too. I think it's normally £100 or something like that.

On the subject of credit cards with large yearly fees: these are cards offered to people that wouldn't really notice the fees. Amex Platinum is a good example, you de get a lot for the extra money and good value if you are going to be making use of it (complete family travel insurance, including skiing, for example). Although, for some reason i was offered one a few years back (already had am Amex Gold and Blue at the time, but only cos they offered me a no-fee deal). Thought about accepting for all of about 3 seconds

[Butcher]

£50 is the usual minimum value for a transaction to be covered (max is something like 50,000 or so). I'm assuming the watch is costing more than that in which case you should be covered. As you mentioned, there's little to no protection with debit cards, so unless you're sure it's not a scam, I'd be inclined to go with a credit card.

[Saracen]

Yes you are protected, up to a pretty large value, definately more than youre likely to spend in anyone go. The protection is provided by the issuer (MBNA/Your Bank etc) under the consumer credit act. And extends for 6 weeks after youve bought the item in case of fault, youre also covered for non-delivery or liquidation of the company.

Yes, with some conditions. The consumer credit act protection applies to purchases over £100, under £30,000 and there are some limitations to transactions within the UK. A court ruling a couple of years ago restricted the protection to exclude contracts with foreign suppliers .... though some card companies have so far voluntarily chosen to not take advantage of their ability to duck out on that basis.

Essentially, the CCA makes the credit card company (within those limits) "joint and severally liable" with the supplier. So, if you could sue the supplier over breach of contract, you could also sue the credit card company. For instance, if you buy a computer (or furniture, or whatever) and the supplier charges you, then goes bust), your general legal position is as an unsecured trade creditor which, in an insolvency situation, generally means you'll get a few pence in the opound, at best, from the company. But, of course, the credit card company isn't insolvent and as they're jointly liable .... either you get your goods or your money back.

Many card companies offer protection above and beyond the CCA duties, and many offer a degree of voluntary protection beyond that which they are obliged to or guarantee to offer, but that varies from company to company.

Personally, I would not buy a substantial item that required payment before I take the goods away, without using a credit card.

[TooNice]

Thanks for the feedbacks. Good to see that there is a 'basic' protection scheme.