Panelbeater Imposing a Max Card Transaction amount??

[dracolusus]

So my car is in for panel beating, the insurance excess is R4300, and the SMS they sent me now states "If paying by card we only allow an amount of not more than R3500 per transaction."

I'm pretty broke at the moment, and was planning on paying for it with credit card on budget. What could possibly be the reason for this and is this even allowed???

 

[Ancalagon]

Could be to limit transaction fees.

When you pay via credit card, they pay a certain percentage of that via credit card. The higher the amount is, obviously the higher the fee is. The percentage stays the same but the fee increases as the amount increases.

Compare that to EFT, and once it is in their account, it is theirs. I don't think they would pay any fees at all. So it is a lot cheaper for them.

Is it allowed? I don't know what the law says about this. Theoretically it is legal tender so why not?

I'd phone them and ask them. Just explain to them that cashflow is an issue for you right now.

PS using the budget facility on your credit card is very expensive!

 

[ToxicBunny]

Could be to limit transaction fees.

When you pay via credit card, they pay a certain percentage of that via credit card. The higher the amount is, obviously the higher the fee is. The percentage stays the same but the fee increases as the amount increases.

Compare that to EFT, and once it is in their account, it is theirs. I don't think they would pay any fees at all. So it is a lot cheaper for them.

Is it allowed? I don't know what the law says about this. Theoretically it is legal tender so why not?

I'd phone them and ask them. Just explain to them that cashflow is an issue for you right now.

PS using the budget facility on your credit card is very expensive!

It is against their merchant agreement.

Visa/Mastercard expressely forbid the practice....

 

[Ancalagon]

It is against their merchant agreement.

Visa/Mastercard expressely forbid the practice....

Ah that's interesting. So you could get them in hot water with Visa/Mastercard if they don't allow the payment?

 

[The_Librarian]

It is against their merchant agreement.

Visa/Mastercard expressely forbid the practice....

Drop a mail to Visa/Mastercard, and they will be taking it up with the merchant responsible. Your best way of getting even.

 

[dracolusus]

Cheers, thanks guys. They finally replied. Says it is cause of the massive bank charges. Told him they need to switch banks, cause they take massive payments daily. But good idea to report them, cause what a pain.

 

[SauRoNZA]

R4300 excess.

Good lord.

 

[Ancalagon]

R4300 excess.

Good lord.

Higher excess is better.

How many months have you gone by without claiming?

 

[ToxicBunny]

Cheers, thanks guys. They finally replied. Says it is cause of the massive bank charges. Told him they need to switch banks, cause they take massive payments daily. But good idea to report them, cause what a pain.

My response would have been to tell them you don't care... their merchant agreement disallows them setting a maximum payment and you expect to pay the full amount via card or you will report them to the relevant processing authority.

 

[dracolusus]

Higher excess is better.

How many months have you gone by without claiming?

Yeah, saves me a bunch, since premiums are stupidly expensive. Been more than 3 years without a claim.

 

[SauRoNZA]

Higher excess is better.

How many months have you gone by without claiming?

Claimed somewhere this year.

But before that never for this car specifically in five years.

However I consider R2500 “high”. R4700 is ridiculous and I doubt the premium is R200 cheaper over two years.

Personally I have no excess at all and a very reasonable premium. Such a high excess has direct insurer written all over it.

 

[Lupus]

Claimed somewhere this year.

But before that never for this car specifically in five years.

However I consider R2500 “high”. R4700 is ridiculous and I doubt the premium is R200 cheaper over two years.

Personally I have no excess at all and a very reasonable premium. Such a high excess has direct insurer written all over it.

It also forces to not claim more, they'd rather fix the issues themselves then have to pay the excessively high excess or drive around with damage that could be repaired easily and cheaply.

 

[SauRoNZA]

It also forces to not claim more, they'd rather fix the issues themselves then have to pay the excessively high excess or drive around with damage that could be repaired easily and cheaply.

Yup.

It’s just a sneaky way for insurance companies to make more profit.

 

[Former member 61586]

Claimed somewhere this year.

But before that never for this car specifically in five years.

However I consider R2500 “high”. R4700 is ridiculous and I doubt the premium is R200 cheaper over two years.

Personally I have no excess at all and a very reasonable premium. Such a high excess has direct insurer written all over it.

Care to PM the name of your broker?

 

[Ancalagon]

Claimed somewhere this year.

But before that never for this car specifically in five years.

However I consider R2500 “high”. R4700 is ridiculous and I doubt the premium is R200 cheaper over two years.

Personally I have no excess at all and a very reasonable premium. Such a high excess has direct insurer written all over it.

Get a quote from your insurer - excess makes a massive difference to your premium. Could quite possibly be R200 per month. In one year he will have saved the difference in excess.

 

[Mike Hoxbig]

As mentioned this is not allowed. Not just for maximum payments, but for minimum payments as well (the far more common case). If they don't accept the full amount, you're entitled to report them...

 

[Napalm2880]

Claimed somewhere this year.

But before that never for this car specifically in five years.

However I consider R2500 “high”. R4700 is ridiculous and I doubt the premium is R200 cheaper over two years.

Personally I have no excess at all and a very reasonable premium. Such a high excess has direct insurer written all over it.

R4700 is not a ridiculous excess. I've had quotes where the excess was 5%, yes a percentage! Given my vehicle is valued at R300 000, that's a R15 000 excess :wtf: That is just plain robbery.

My current insurer has a R4200 excess but my premiums are super low - roughly 50% of what other insurers were offering.

 

[pinball wizard]

Higher excess is better.

How many months have you gone by without claiming?

You have the wrong insurer, or don't understand how the game works.

 

[Napalm2880]

As mentioned this is not allowed. Not just for maximum payments, but for minimum payments as well (the far more common case). If they don't accept the full amount, you're entitled to report them...

Do you have any idea of how strictly this is enforced by Visa/Mastercard. I can't tell you the number of times where I've just wanted to order 1 beer and ended up ordering 3 because they have a cash under R100 rule.

 

[Mike Hoxbig]

Do you have any idea of how strictly this is enforced by Visa/Mastercard. I can't tell you the number of times where I've just wanted to order 1 beer and ended up ordering 3 because they have a cash under R100 rule.

Report them to their acquiring bank - which should be printed on the device - as that is who their merchant agreement would sit with. I'm not sure of the extent of action that can be taken, that would probably vary from case to case.

The rates that they are charged are regulated, so they can't just selectively bypass it if they don't like it...