Forum Topic

Council Tax Payments

Anyone attempting to pay council tax by telelephone, or on line,should beware that when paying by Credit Card, you will be charged an extra 2.5% for the privelege ! I tried to pay the £681 due for the next six months on the same day that the demand arrived,and was told at the end of the automated transaction that an extra £17.025 would be deducted for the card transaction. I cancelled immediatly and sent a cheque by 2nd.class post.

Sally Kennedy ● 4579d10 Comments

Evidently, these fees are called "Convenience Fees" by Visa and Mastercard and are allowed.  What isn't allowed is to charge a different rate for different cards.

Charles Campbell ● 4579d

Then there must be a lot of broken agreements.  Probably too many for Visa, Mastercard, American Express or Discover to pursue.  Maybe it's an "Unfair Term">  Seems to be a lot of those in contracts these days according to the Office of Fair Trading.

Charles Campbell ● 4579d

You're right that it's becoming ever more common, Charles, although it breaches the contract between vendor and credit card company, which bans such surcharges.You can get round it by using debit cards but then you don't have the belt-and-braces assurance of being able to claim your money back from the credit card company if the firm you are buying from goes bust.

Susan Kelly ● 4579d

The charge is outlined on their website.  It also states that direct debits and debit cards are free.  Many companies are starting to charge for credit cards now.  I had to pay for an annual membership yesterday via telephone.  I had the credit card handy, but I asked before giving them the number.  They said "Oh yes, sorry" but it will be 2% charge.  I switched to my debit card and all was fine.

Charles Campbell ● 4579d

Not sure it would be entirely honest of them to make a profit on the credit card surcharge -- possibly not even legal?

Susan Kelly ● 4579d

The point is they could charge a 2% premium, pay 1,43% and make some money but, as you rightly say, it's not their money. Beggars belief at the ineptitude, as a private company they would last moments.

Nigel Brooks ● 4579d

But they don't bother, Nigel, because it isn't their money they're wasting.

Susan Kelly ● 4579d

If the council is paying 2.5% for credit card merchant fees then they have not struck a very good deal on behalf of council taxpayers.Took me five minutes to find a deal at 1.35%, I am sure that the council could do far better than that.

Nigel Brooks ● 4579d

The Council has to pay the credit card company, which is our money going down the drain. They should have told you up-front, though.

Susan Kelly ● 4579d

It will take a few weeks for the Council to cash the cheque, and you will receive numerous letters requesting payment in the meantime.

Lisa Barbaric ● 4579d