CHAPS payment for a high value car

[Z064life]

Hi All
So I am looking to pay off the balance on a high value car I have put a deposit down. It seems like CHAPs is the quickest way to go. However, does CHAPs offer any sort of protection in the case of the car being faulty like a credit card (S75) for under £30,000 offers?

The car is 200 miles away which poses a practicality barrier. The car will not be released until funds have cleared, like any seller would understandably do, and paying by card can take up to three days to clear so that's not an option. I am thinking of paying in the morning of the day I collect the car by CHAPS (seller will not be present), get a receipt, let seller know that I've transferred the money, and then drive up to pick up the car (three hour drive). By which time, the funds should have arrived in the seller's account (different bank).

The car has a tracker on it so I can ensure it remains on site.

Sound like a good plan?

Thanks

[gumshoe]

Are you buying from a trader or is it a private sale?

[Z064life]

gumshoe said:

Are you buying from a trader or is it a private sale?

Trader

[gumshoe]

Z064life said:

does CHAPs offer any sort of protection in the case of the car being faulty like a credit card (S75) for under £30,000 offers?

...and paying by card can take up to three days to clear so that's not an option.

CHAPS doesn't have any protection. You can attempt to recall payments but it isn't a given and if the beneficiary has withdrawn the money from the account, it'll be neigh on impossible if they don't want to return it to you.

I'd be surprised if they take credit card payments as those are more expensive than debit cards (still), but I don't get why they wouldn't release the car on successful card payment? If the payment is authorised,and you've done it in person (using Chip and PIN) then what are they worried about waiting 3 days for? They're going to get paid, and if you wanted to dispute it you could do so for upto 6 months later anyway (and you'd fail the dispute if paid for via chip and pin).

[Z064life]

I guess the problem with credit/debit card is that even if the payment goes through, it may get flagged up for the large amount (even though I give the bank notice) and the money may arrive later. I can understand the apprehension and I've even read threads on here where someone says wait for funds to arrive and clear in full regardless of payment method.

Yeah credit card has handling fee.

Yeah as I thought, CHAPs has no protection. I've done as much due diligence on the car as possible so I'm happy there, anything that happens next would be luck really.

Debit card has no protection really, it's just best endeavours and not legally binding.

[hepy]

As the amount is less than £250,000 you should be able to use a same day payment which is generally free (unless you are paying from a business account). These usually go through instantly, i.e. you can do it on site via internet banking.

CHAPS payments are usually charged around £10-£30.

[tickedon]

Z064life said:

I guess the problem with credit/debit card is that even if the payment goes through, it may get flagged up for the large amount (even though I give the bank notice) and the money may arrive later. I can understand the apprehension and I've even read threads on here where someone says wait for funds to arrive and clear in full regardless of payment method.

Yeah credit card has handling fee.

Yeah as I thought, CHAPs has no protection. I've done as much due diligence on the car as possible so I'm happy there, anything that happens next would be luck really.

Debit card has no protection really, it's just best endeavours and not legally binding.

When the money arrives with the trader isn’t your concern if paying by card. Once it has been put through the card machine, they know the money is on its way and should release the car immediately.

A CHAPS payment will cost you £25 with most banks. Far better off paying the credit card fee and having some protection if it goes wrong. If the trader will take a credit card but not release the funds until they physically arrive in their account, I’d run a mile as clearly they have no clue what they are doing. Some merchant accounts take up to a week for the funds to arrive with the trader.

If bank flagged it, they would hold authorisation and call you. Once you’ve spoken to them, they push it through or it declines and ask you to go through again. In either scenario, trader gets a merchant copy receipt confirming transaction is successful and should release the vehicle.