Payment methods
We do accept debit and credit cards
Credit and debit cards are the most popular way for people to pay for things.
Debit card
Debit cards are linked to your payment account and take money directly from your account when a purchase is made. To use a debit card, you should have sufficient funds in your account to cover the cost of your purchase (or agreed overdraft facilities) as the money comes out of your account shortly after you make the payment.
Is it a convenient payment type?
Many debit cards can be used to make contactless payments for purchases up to £100, where you simply tap your card over a reader.
Theyre quick to use in shops and online.
Is it a widely accepted payment type?
Debit cards are a widely accepted payment type. Retailers pay a charge for accepting card payments and they may reflect this charge in the prices charged to all consumers for goods and services.
How protected are you?
Payments are managed and processed by card schemes like Visa and Mastercard, who check with card providers if a transaction should be accepted or declined. Unlike with cash, for example, if you lose your card or it gets stolen, there are processes in place to get it cancelled and replaced.
If there is a problem with the transaction or the goods or services you have bought, you might be able to make a claim for a refund by contacting your card issuer to raise a chargeback. However, this is a voluntary system operated by card schemes, so youre not always guaranteed your money back.
Credit card
Credit cards are not directly linked to your bank account. When you use a credit card to make a purchase, the credit card company pays the retailer and then you are required to pay the credit card company at a later date.
Credit card companies will give you the opportunity to pay off what you owe them in full, or alternatively pay an amount each month. If you choose the latter, the credit card company will generally charge you interest on the amount outstanding.
Is it a convenient payment type?
Many credit cards can be used to make contactless payments for purchases up to £100, where you simply tap your card over a reader.
Theyre quick to use in shops and online.
They provide an easy source of available credit. However, it can be easy to run up large amounts of debt using a credit card and a high rate of interest may be charged if you dont pay the outstanding balance off.
You may not be able to get a credit card – each credit card company has criteria that you must meet before they will issue a card to you.
It is possible to withdraw cash from an ATM using a credit card, although charges imposed by many credit card companies for this can make it an expensive way to access cash.
Is it a widely accepted payment type?
Credit cards are a widely accepted payment type. Retailers face a charge for accepting card payments and they may reflect the charge in the prices charged to all consumers for goods and services.
How protected are you?
Payments are managed and processed by card schemes like Visa and Mastercard, who check with card providers if a transaction should be accepted or declined. Unlike with cash, for example, if you lose your card or it gets stolen, there are processes in place to get it cancelled and replaced.
If there is a problem with the transaction or the goods or services you have bought and you spent more than £100, the Consumer Credit Act requires the credit card company to reimburse you.
Prepaid card
Although credit and debit cards are the most popular, there are other types of cards used to pay for things, including prepaid cards. When you first start using a prepaid card, you load it with money and then top it up when it runs out.
Is it a convenient payment type?
Prepaid cards are an alternative to using cash, and dont require you to open a bank account.
While most prepaid cards dont have an upfront fee, they charge varying fees, from a charge for each time you use the card to make a purchase to a fee for using it to withdraw cash from an ATM.
Is it a widely accepted payment type?
Prepaid cards are accepted nearly everywhere debit cards are, since they are often issued by a well-known card network, such as Mastercard, Visa or American Express.
How protected are you?
Providers of prepaid cards are often not required to be members of the Financial Services Compensation Scheme (FSCS), so youre not offered that protection. Thats why its encouraged to only put the money you need to on your prepaid card, for things like immediate spending on holiday.
Charge card
With charge cards, although you spend in the same way as you would with a credit card, you must pay off your card balance in full every month.
Is it a convenient payment type?
Because your balance shouldnt roll over into the next month, charge cards are not advertised with interest rates.
They have an uncapped spending limit, but typically charge a high annual fee and late-payment fees.
As with credit cards, each card issuing company has criteria that you must meet before you can get a charge card.
Is it a widely accepted payment type?
Charge cards are not as widely accepted as credit cards.
How protected are you?
Charge cards do not offer protection under the Consumer Credit Act, but they may offer their own purchase protection or extended warranty cover instead.
To accept card payments, merchants must pay certain fees which can ultimately impact the cost we all pay for goods and services – we have work underway to examine these fees. Were also working to make account-to-account payments become a realistic alternative to credit and debit cards. This should mean more competition between payment systems, giving you more choice and improved services.
