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How to pay: credit card or wire transfer??

rugbywing

Rough_Rock
Joined
Jul 24, 2017
Messages
19
Hey guys,

Just interested in some thoughts about how to pay for a diamond engagement ring. Obviously there's a saving to be made (1.5% or so) from using a wire transfer. But then I was always told (momma's boy)! that big purchases should be on credit cards, because of the extra protection etc etc.

Are there really risks to wire transfers, with reputable dealers like James Allen? A card payment will cost me even more, as I'd be buying in dollars with a UK card, which incurs foreign currency charges etc etc!

All thoughts welcome :)

M
 

hifihua428

Rough_Rock
Joined
Mar 21, 2017
Messages
63
It depends what sort of protection you are looking for. If you want to make sure that you can return the diamond, JA already cover 30days return. They also insure the diamond until the package is signed by you. The only benefit of using credit card maybe cash-return if your credit card company offers it.
 

kmarla

Brilliant_Rock
Premium
Joined
Feb 8, 2013
Messages
690
I've done both wire transfer and credit card. There are couple of things to consider before making your decision. First, the banks charge a fee for wire transfer, so it is not free. I remember the fees were around $50-$60 dollars. Second, the bank usually charges a higher mark-up on international exchange rates than credit card companies. It pays to do the math first because these extra costs might negate any extra savings from the vendor through wire transfer. It might still turn out to be a savings to do the wire transfer, but for me there have also been times when financially it was better to use the credit card. Hope this helps.
 

denverappraiser

Ideal_Rock
Trade
Joined
Jul 21, 2004
Messages
9,091
Every merchant who accepts credit cards must sign a merchant agreement with their processor. This includes sending them a copy of the return policy, terms and conditions, warranty statements, and so on. If you have a dispute with the merchant, for example you ask for a return that's in compliance with the policy and they refuse, you have recourse with the CC company. Otherwise, your recourse is in the courts.

Effectively you’re buying a bond on the seller at a cost of 1.5%. Should you do that? It depends on what you think of the seller and how well you know them. I tend to think it's a good idea if you're a first-time buyer or otherwise have little or no experience.

FWIW, often you can recover most if not all of that 1.5% in the form of perks from the CC company. It’s not quite as good as cash up front, but some are really pretty close. My preferred card pays me 2% for example.
 

flyingpig

Ideal_Rock
Premium
Joined
Nov 7, 2015
Messages
2,975
Credit card, always, especially with oversea vendors.
Easier, faster and more protection. build your credit history. easier to dispute.
I get 3.0% back in reward points with my CC.

mommas are right.
 
Last edited:

marcy

Super_Ideal_Rock
Premium
Joined
Feb 27, 2007
Messages
25,719
I've paid for jewelry both ways and prefer the cc. My bank charges a minimal fee for the wire transfer but it was kind of pain to go to the bank in person to make the transfer. My cc gives me points back that I can use for gift cards or cash back on my card.
 

Lookinagain

Ideal_Rock
Premium
Joined
May 15, 2014
Messages
3,319
there are credit cards with no foreign transaction fees, at least we have them in the U.S. So I would check into that. And yes, cc's generally give a more favorable conversion rate than a bank. So I would not assume, given that it is a foreign transaction, that one way is cheaper than the other. I think you need to do a little research and see which comes out best for you and weigh in the added protection that a cc will generally give.
 

Austina

Ideal_Rock
Premium
Joined
Feb 24, 2017
Messages
6,809
I've recently bought from the US (I'm in the U.K.) and for peace of mind and security, I used CC. It's not just the comeback in case it's not what you expected, but if the merchant were to go bust between receiving your funds and sending the goods, you're covered, plus we get airmiles with our card :D
 

missy

Super_Ideal_Rock
Premium
Joined
Jun 8, 2008
Messages
51,497
Credit card for me for sure. Safest way for peace of mind IMO.
 

ryan23

Rough_Rock
Joined
Jul 16, 2017
Messages
45
I just paid credit card with an upcharge of 2.5%. For a few reasons: 1) points, 2) my credit card insures purchases for 4 months, 3) peace of mind.

Read your terms and conditions for your credit card for purchase protection. They all vary, and I used the one with the highest limits (Citi Prestige).
 

diamondseeker2006

Super_Ideal_Rock
Premium
Joined
Jan 11, 2006
Messages
58,471
I always pay by wire from vendors I trust, because the savings is greater than the value of CC points that I get. I have wired to Good Old Gold and Whiteflash multiple times. I would have no problem wiring to James Allen since they have a good return policy. I usually always pay by CC through Paypal on ebay to have double protection, but I don't see any issues in wiring money to most well regarded diamond vendors on PS if it will save money doing so.
 
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