Credit Card for short term use

A

AndroidMan

Registered User
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I need to rent a car in a few weeks.
Most renters require a credit card and those that accept debit card will cost way more than the €30 (??) stamp duty I would be charged if I get a credit card.
I do not require a credit card apart from this one off requirement.

I am thinking of getting a card in Feb and cancelling it in March. Will the card companies be ok with that or do I need to sign up for a longer period?
Will I still have to pay the stamp duty, but if yes, how will they take it if the card is not active and in theory I will not have used it as the car rental will reserve the money and then cancel the transaction.

Alternative is a pre pay CC - same questions above and also will car rentals take a pre-pay?
Can I take the money back off the prepay afterwards without fees or is it just a matter of running it down over time.

Main reason for not having a CC is the annual tax, it is not something I agree with.
 
If you have a credit card for less than the full year, which is perfectly possible, and use it at all then you'll be automatically charged the €30 stamp duty.

Credit cards and charge cards

Financial institutions generally collect Stamp Duty on 01 April, in arrears, unless the account has been closed during the year
www.revenue.ie

Bank Cards - Debit cards, Credit cards, Prepaid cards & ATM cards

There are several different types of bank cards available which allow you to access your money. Find out more about using bank cards.
www.ccpc.ie
I would expect that the reservation for the rental car would constitute a transaction/use. But even if not aren't the rental company going to use the card used at booking time to pay for the rental?

I didn't think that prepaid credit cards were widely accepted for car rental? Don't most rental companies insist on a credit card in the name of the person hiring the vehicle?
 
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AndroidMan said:
Main reason for not having a CC is the annual tax, it is not something I agree with.
Click to expand...

I disagree with LPT but I still prefer living in a house to a tent.

Just get a credit card. €30 per year is not a large sum of money if you can afford to travel abroad and hire cars.

Even if you rarely use one a credit card is a useful convenience.

I value the ability to initiate a chargeback for faulty goods or services.
 
I have a credit card from AIB Northern Ireland since a few years ago. This is a Sterling card. There is no Irish stamp duty applied to this credit card. There are no bank fees either.

The car hire companies mainly want a credit card to make a preauthorised payment to cover the non waivable damage liability. They might accept the actual car hire charge from a debit card.

The sterling credit card can be used for this and if there is no damage charge the preauthorisation is cancelled, so no currency exchange fees apply to the sterling credit card.

I don't know if AIB NI will still provide a credit card for new accounts to non residents.

Could be worthwhile checking this out for future car hire.
 
According to revenue:
All cards are liable if the cardholder has a billing address in the State. You are liable for Stamp Duty if your financial institution is located outside the country.
Click to expand...
The cardholder is liable to pay stamp duty if the bank doesn't collect on behalf of the card holder

Stamp Duty on financial cards

Stamp Duty is levied on financial cards, charge cards and credit card account. The financial institution collects the duty from cardholders
www.revenue.ie

I have no idea how this would be enforceable, or how they'd find out. I'am pondering sending an inquiry to Revenue for the same as I have a debit card from another European Bank which doesn't collect stamp duty on that card. OTOH, I don't want to point revenue towards it either.
 
I'm not a fan of CC stamp duty but that doesn't stop me from enjoying the benefits of having one. At the end of the day it's only €30. I spread that cost over very many transactions a year.


To help put that €30 into perspective, what are the extra costs associated with using a debit card when it comes to car rentals?
 
Another possibility could be to share a credit card account among trusted family members or friends. This could be exclusively for car hire or emergency use only.

I have a credit card from Avantmoney and my wife has a second credit card from this account (her name on card and different credit card number). Up to 4 cards can be held in separate names for no additional fees. Only one government stamp duty applies to this arrangement.

I also object to the unfair treatment of Irish citizens by the implementation of this unique stamp duty.

Finding ways to avoid or reduce this stamp duty is rewarding.
 
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newirishman said:
I have no idea how this would be enforceable, or how they'd find out.
Click to expand...
Very difficult I imagine as other countries don’t levy stamp duty on credit cards

There is probably no agreement in place for sharing of information like there would be for income tax.
 
Its around €60 more expensive for a car where I can use my Debit card, so the €30 for the annual CC makes sense. It still pains me!!
Its not the amount, its the principle.
 
AndroidMan said:
Its around €60 more expensive for a car where I can use my Debit card, so the €30 for the annual CC makes sense. It still pains me!!
Its not the amount, its the principle.
Click to expand...
So you'll be €30 quid up, have all the advantages of a CC that others have outlined, all while contributing to the funding of the State. Win win (win).

Fully embrace the CC and you might be even better off. Cash back can be a nice little earner if used responsibly i.e., 0.5% back when you spend between €5k-€50k (I think it's only AIB that offer such a reward on new cards)

Platinum Visa Card

The AIB Platinum Visa Card provide a high level of flexibility, service and rewards for our personal customers.
aib.ie
 
Yeah, I get it, but I have done without for 10 years and this is just a one off need.. anyway, looks like I need to get the card and will probably cancel it at the end of the year.

Re the AIB card, I would not spend that much on a card, besides, I am happier with a Debit Card.
 
I think I probably should have a variation of your user name!
 
Just to say re the credit card vs debit card when it comes to holidays
I have a credit card that comes with travel insurance, yes I have to pay a premium for it and the stamp duty
But when you factor in what it would cost just for a very good travel insurance policy for a family or in our case two adults, it's a win win
And then you get all the other benefits of credit cards over debit cards like car hire, membership perks etc etc
 
I use the BOI Platinum card which has a yearly fee of €76.18
But there is also the Aer Card which has a monthly fee of €6.50 or €78 for the year
I feel the Aer card is probably the better one as it gives you more travel perks
But I believe both have the same travel policy
 
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