You want to be protected when you make major purchases. What if something you buy is faulty, but due to certain technicalities the retailer and manufacturer are bother refusing to work with you? This is a great reason to use a credit card for such purchases. What protection does a credit card offer you? Read on to learn more.
The reason why credit cards offer greater protection is due to the Consumer Credit Act. The 75th section of the act makes the credit card company jointly liable with you for the purchase. This gives you recourse if something goes wrong. The Act applies to purchases over 100 pounds but not to exceed 30,000.
You are also covered if you never receive an item that you purchase with the card online. It can even help out if the product is of an inferior quality. The Act requires the credit card company to give you your money back. Then the rest of the issue is just between them and the manufacturer or seller.
What about a debit card? Many debit card companies, while not subject to section 75 of the Consumer Credit Act, have their own agreement with card holders to provide protection. The difference is that they are not legally obligated to have such an arrangement or to fulfill it. Thus, you have to trust in the individual debit card company to have protection against fraudulent charges and other potential problems, and then live up to that promise.
What if you are the company accepting credit cards? You need to be on the look out for potential scams, stolen cards, and identity thieves. This can be difficult to do. One simple practice is to ID individuals who make credit card purchases. Of course, they may have made themselves a fake ID with the name on the card, but this practice should weed out at least some crooks. You can also require a piece of personal information at checkout such as a phone number or zip code. This can then be matched to the card. The fact is, if you let a fake or stolen card be used at your establishment, you aren’t going to see the money.
These are just a few ways that business and consumers can both protect themselves. By using a credit card for major purchases, you protect yourself from potential loss. And businesses that have systems for confirming identity can keep themselves from having goods stolen right out from under them.