FlyerTalk Forums - View Single Post - "No preset spending limit" on USAir World MC: what exactly does that mean?
Old Jan 23, 2009 | 2:38 pm
  #14  
tommyleo
 
Join Date: Sep 2006
Location: PHL
Programs: Former long-time US GP; now AA dirt
Posts: 4,904
Originally Posted by outoftown
You would be better off by asking the dealer up front what their policy is on credit card purchases rather than whip out the cc at the end with a copy of merchant rules. Not really a good way to make friends and impress people, nor a way to handle an important transaction. High dollar items with a narrow profit margin would mean you would have to start the bargaining all over again because no dealer is going to eat credit card merchant fees for the full purchase price unless you substantially overpaid. I bought my last three vehicles with the maximum I could put on credit cards and it was generally the largest charge the service department would accept, $2500 ~ $3000. The best approach would be to find the best deal at the best dealer and then charge what you can.

-outoftown

This is fascinating!!

On a board where many of the posters are very quick to advocate holding US to their rules by carrying the Contract of Carriage, some people are now telling me not to hold one of the least-trusted groups of people -- car dealers -- to the MC merchant rules.

I spoke with MC customer service today, and the rule is clear. If a car dealership accepts MC, they must accept it for the purchase of a car. And the dealer cannot impose a maximum. I was also told by MC that they see many charges from dealerships for over $40K, so it's clear that some dealerships do take CC's for the full price of a car.

If the dealer and I sign an agreement on a purchase price, that is the purchase price. I do not need to let the dealer know upfront that I am going to use a credit card if the dealer accepts credit cards. In fact, I'd be stupid to do so because the dealer would obviously try to get a higher price for the car.

If the dealer completely refuses, they will be reported to MC for non-compliance and will likely pay a fine. And there are plenty of other car dealerships in the Philly area, all of whom are trying very hard to sell cars these days.
tommyleo is offline