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Has anyone else here been charged by a Ford Dealer a 3% transaction fee for using a Ford Rewards Visa to make a purchase?
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3% transaction fee for using Ford Reward Visa to make purchase?
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which dealer did this? I see you're local so if you can pm info, thats okay. TY
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I was going to put 5K on my Ford Visa as a down payment to get the points and the dealer said they would charge me the 3% so I passed. This was in PA.
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Nope, but some places charge a 3% to use any credit card.
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I was able to put $5k down towards my truck on the Ford card no problem. But I asked a couple weeks in advance of picking up my truck to be sure. They cap the amount on a card at $5k but no fee.
Each dealer can set its own policy. They probably do pay about 2.25% of the charged amount to the back that issues the card.
Each dealer can set its own policy. They probably do pay about 2.25% of the charged amount to the back that issues the card.
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I paid a $5K down payment with my Ford card. I got some hefty reward points, and they never charged me 3%. I would call their BS.
This is not about the Ford visa at all. It's certainly the credit card policy at your dealership and the OP's.
As another reply stated, when a credit card is used the merchant pays a fee. Many dealerships pass that fee through if you try to use a card for a downpayment or entire purchase. This is especially true given the prevalence of rewards and cash-back credit cards today. If there were no fee any person could put down a deposit with their credit card instead of cash, then the next month pay the card off. Over a decade ago I stopped using my debit card except in emergencies and I run everything through a rewards card that I pay off every month. Everyone should do it, if they have the diligence to pay off each month and not allow a balance to build.
Mine does for vehicle purchases, but not for anything else. All things being considered, once they pay their staff the margin on a vehicle for a dealership isn't great.
The Ford visa is a great deal for that. Got a cash bonus for opening the account, another cash bonus for using it to make part of my down payment on the truck plus a pile of points to use toward dealer service, parts, extended warranty, etc.
There is no annual fee but the interest rate is insane. Like you said it's a good deal for those who can pay off monthly. Also purchases at Ford dealers of $500 or more are interest-free for 6 months. So good if you want to use for a big repair job or parts purchase.
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OP
OP
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It’s the dealership policy.
After contacting Ford Visa Rewards, I have no interest for 6 months.
So, I am still ahead of the game plus received points on the $2k purchase.
After contacting Ford Visa Rewards, I have no interest for 6 months.
So, I am still ahead of the game plus received points on the $2k purchase.
We have earned many free flights doing this.
That sounds like a cash advance fee. So, if that is the case,they ran your card as a cash advance rather than a purchase. So you can also look forward to interest (even if you pay in full...no grace period with a cash advance).
This happens commonly with a deposit, as it is in lieu of money. And no, whomever is charging you, does Not have to tell you, they are running your card as a cash advance. And cash advance transactions also do not earn rewards.
If they ran your purchase (actual items, not a deposit) as a cash advance, then I would ask them to reverse the charge and then run it again as a purchase (aka: do it right).
Those not a business owner might just be surprised at how much credit card fees add up each month for a business. 3-4% charges for credit ( Visa, PayPal, etc.) can eat up about all of the net profit on a vehicle. That is the number one reason a dealer will almost always have a limit on how much of a vehicle purchase you can put on your credit card. Nothing is free in this world, if you go to a bank you expect to pay interest....doing the up front fees at a dealer is exactly the same thing.
Then there is the bank.....especially on loans where the credit rating, down payment to purchase price is borderline, there are limits to what a bank will allow as down payment via credit card to approve the loan.
Then there is the bank.....especially on loans where the credit rating, down payment to purchase price is borderline, there are limits to what a bank will allow as down payment via credit card to approve the loan.
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