It seems that today in the UK and other parts of Europe many businesses and even families are asking can business refuse credit card payments. The credit card companies claim that they only sell their cards to people who will pay in cash. This is not always the case as some companies are still selling their cards and charging consumers for purchases using them.
Businesses have many ways to charge items. It can be a simple credit card or a special machine used to issue payroll. Often these machines are attached to the business premises and can be accessed from any part of the building. When using equipment to process payroll, goods and services sold by the business, or other things such as rent and VAT charges, the business is legally responsible for any misuse. Failure to pay the appropriate amount can result in a chargeback to the cardholder's account. By refusing to issue credit cards, businesses can put themselves at risk of losing those funds they have spent on supplies and equipment.
There are two main reasons that a business may decide to refuse a credit card payment. The first is purely legal. The business may decide that the customer is not going to pay for goods or services as advertised and so charges the customer for what it has been charged. The second reason is simply a business choice. Many companies decide to refuse credit cards to employees as part of a larger scheme to prevent theft.
The refusal of credit cards to a customer can come down to a couple of issues. Firstly the customer may not have enough credit to cover the purchase and therefore the store is charging interest on the balance. If the customer had sufficient funds to pay for the item then there is no need to charge the interest.
Secondly, the business may not be legally allowed to sell goods and services with the use of the credit card. This can be determined by checking the terms and conditions of the credit card agreement. For example many stores and restaurants are only able to take cash and will not allow credit cards. At the same time, most hotels and motels will not accept cards and will charge extra for such use. These businesses therefore must provide a form of payment that the customer can use instead of cash.
In addition to these reasons, a credit card user can refuse payment in certain circumstances too. For example, some employers will insist on paying wages using a credit card. This is because the employer has a responsibility to ensure that all employees are paid and receive their wages on time. The employee must be able to prove that they are employed and have been paid for an agreed period of time. By refusing a credit card payment the employee shows that they are attempting to prevent the collection of money from the employer.
Some credit card users will only use credit cards with certain websites. For example, they may only deal with websites that they know and trust. At the same time, they will only use credit cards from companies that they recognize as safe and dependable. In other cases a business will refuse credit card payments if they suspect a customer has used their services illegally. . . . . . . For example, if you are running a daycare center, then you will not allow children to use a credit card provided it is only for emergency purposes.
Finally, businesses can refuse to accept payment through a credit card in certain cases. For example, they may refuse to pay credit card debt if they believe the customer is trying to collect money illegally. Similarly, they may refuse to accept credit card payments from businesses that have an unresolved dispute with them. In some cases a business will only allow credit card payments if the customer guarantees acceptance. This is a sensible way for a business to protect themselves against fraud or theft.