Debit Cards

[donny48]

Can money owed be paid into a debit account ?
A firm who owes me money was asked to pay it to my debit card said it wanted a credit card account. Is there some universal reason for this or is it just a particular firms way of business.

[dannyk13]

Any money that I am due from any source is always paid in to my debit card account.All that a payer requires is your sort code and account number.

[CrapAtCryptics]

Maybe it costs them less.

[dannyk13]

cac, it makes no difference, the money is paid to an account, not a credit/debit card.

[Mozz71]

The only reason I can see is if you paid the money by credit card in the first place. Some companies insist on the same repayment method to help avoid fraud.

[donny48]

I have no problem with money paid to my credit card but it just struck me as curious not to be able to use a debit card.
Danny, you appear to answer my question in that it must not be a universal thing if you have had monies paid into your debit.

[dannyk13]

Donny, I cannot see what the difference is.Both cards have a sort code and an account number.

[donny48]

Mozz, You have the answer , I did use my credit card on the original purchase.

[dannyk13]

Donny , if this is a refund for something you paid for by credit card then the payer already has all the details he/she needs to pay the money into your account.

[donny48]

I realise this, Danny but was asked for credit card account and since I know the people I was dealing, I recognise the mans voice from numerous dealings with him, with supplied the details.

[bhg481]

When you buy something using a credit card the retailer is charged a fee by the credit card company. If the goods are returned I suspect, but don't know for sure, that the fee, or part of it, is returned to the retailer. The fee for debit card use might be lower than that for credit card use so it pays the retailer to return payments via a credit card wherever possible.
Some credit cards give cashback - I get a small percentage off all my annual spending one one of my cards as a bonus at the end of the year. I could make money by buying things on credit card and returning them via debit card if you were allowed to do that.

[1ozzy]

Danny, most companies I deal with don't save credit account details.
They're a one use transaction.

[Prudie]

Danny it's not true that it makes no difference - companies are usually charged by the bank for making payments to cards - although strangely in this case because it's usually less of a surcharge to a debit account than it is to a credit card.
The general public see a difference too, you often see a £2.50 surcharge for paying online with a credit card.

[dannyk13]

Prudie,// you often see a £2.50 surcharge for paying online with a credit card//.I accept what you say, but, in all the years( quite a lot) that I have used my debit card I have never had any surcharge levied.

[Bobbisox1]

If you have money credited to your credit card account and there’s nothing owing on the card, you can ask them to transfer that money to your debit card ( bank ) account for free

[Maydup]

The company is obliged to return the money to the card used for the original purchase. Its a security issue to ensure the refund isn't diverted elsewhere fraudiently.

The retailers fees are automatically deducted on the net value of their transactions, so they will recoup the fees they paid on the original transaction once they process the refund.

[bhg481]

It's now illegal to pass the surcharge on to the customer. I seem to remember that at one time if you bought your road fund licence online there was a surcharge for credit card use, whilst debit cards were free. The same applied to one of the ferry companies

[Maydup]

I think you'd need to ask the credit card company to do that Bobbi rather than the retailer.

[Bobbisox1]

Yes Maydup,what I mean is , if the company insists on paying the amount to donny48s cc,he can ask his cc provider to then transfer the amount to his bank account, providing there’s nothing else owing on the credit card

[Prudie]

Funnily enough I have taxed my car only this morning. There is still a £2.50 surcharge if paying with a corporate credit card.

[bhg481]

Prudie - corporate credit cards must be different; I used a credit card for my car in February (for March 1st) and I'm too mean to pay a surcharge, so used a debit card in the days when CCs were charged.