Billing card w/o shipping product?

[ChiefPilot]

I'm interested in what others here think; I ordered an accessory for my -6A project from a vendor about a month ago and although my credit card was billed almost immediately, I have yet to receive it.

In other markets (i.e. computer stuff, shooting supplies, etc.) reputable vendors don't charge a card until they ship the product; is that normal with experimental aircraft stuff?

I have e-mailed the vendor directly, and I will not divulge the vendor name or product (it would give it away) until/unless/etc. I hear back. I want to be clear that I am seeking information about other's experiences, not looking to badmouth someone....

Thanks!

[MCA]

We don't charge the card until the item is shipped. Most companies I dealt with while building my -7 had the same policy. Usually engine builders or panel builders will ask for a deposit or progress payments, just because those are big ticket items.

[Mel]

Normal practice on most products is to bill the card when the item is shipped, but this is not a rule or regulation.
Some things, such as airline tickets and discount hotel reservations, are billed immediately.
I would suggest contacting the company and confirm that this is indeed their policy and not an error.

[flyeyes]

Originally Posted by ChiefPilot

In other markets (i.e. computer stuff, shooting supplies, etc.) reputable vendors don't charge a card until they ship the product; is that normal with experimental aircraft stuff?



Thanks!

In aviation, and in experimental aviation especially, a lot of companies are under capitalized. Some are really hobbies. Some vendors don't have the resources to keep a reasonable inventory, and may need your payment to purchase the accessory from the manufacturer (or the materials to make it themselves).

In effect you are their bank for a short time, and you assume some risk that the business will fail before you get your stuff. With small items I wouldn't sweat it too much, but for big ticket items I would look for a stable vendor with the resources to carry their own production costs.

Every few months we hear from somebody who paid up front for an engine they never received...

[jsherblon]

The Federal Trade Commission has a rule commonly called the "the 30 day rule."

The rule basically says that orders placed by telephone, mail, or internet must be shipped within the time the vendor states in the advertisement, or within 30 days if no shipping time is stated in the advertisement. If the vendor can't ship within the stated time, or the 30 days if no time was stated, the vendor must notify the customer. The vendor can keep the money only if the customer is asked and agrees to the delay. If the customer says no to the delay, or simply doesn't respond, the vendor must cancel the order and promptly refund the money.

[JHines]

The credit card companies normally expect that the customer's card won't be charged until product is shipped.

If "advance payment" is needed, for whatever reason, that should have been made explicitly clear to you. Failure to do that can be a violation of the seller's agreement with their merchant services provider.

It's one thing if your payment is needed to order product or materials to fulfill your specific order; another thing entirely if the vendor is using your money as general "float".

[Rupester]

Generally Accepted Accounting Principles (GAAP) says the customer will not be billed until the merchandise ships.
Aside: In "olden days" the rule was the customer should not be billed until he/she had "beneficial use" of the merchandise. When it became clear it was too difficult to predict when the customer actually received a shipped product, the rule was changed to "bill when shipped".

... Your ancient accounting trivia for September...

Terry

[cytoxin]

Originally Posted by Rupester

Generally Accepted Accounting Principles (GAAP) says the customer will not be billed until the merchandise ships.
Aside: In "olden days" the rule was the customer should not be billed until he/she had "beneficial use" of the merchandise. When it became clear it was too difficult to predict when the customer actually received a shipped product, the rule was changed to "bill when shipped".

... Your ancient accounting trivia for September...

Terry

yeah but i think this company goes by GAHAS.

[ChiefPilot]

Thanks for all the feedback!

I heard from the vendor via e-mail; the product is supposed to ship out next week. If it does not, I will post further information at that time.

Thanks!