Debit card wouldn't go through in store when getting a contract phone?

[jennyintokyo]

I went into my local o2 store this afternoon and I wanted to purchase a Samsung phone for a monthly contract. Everything was going fine. The guy serving me was brilliant and helped me find the phone I wanted and then the problem was when he was trying to process my debit card information in the system. Now this is the first time Ive ever had a phone on contract as I've always previously been on the pay as you go SIM as my previous phone was a phone a family member gave to me. At first the guy serving me said I needed to pay £100 alongside the upfront cost as I had never had a contract or anything like that with o2 before. However, he said he would try and process my card another way for me to avoid the £100. Everytime he then tried to process my card info in every way possible the system wouldn't accept it. He said sadly my options were:

1. Get a SIM with better data etc for £13. (That wasn't what I wanted but it was an option).

2. Pay the £100 - at the time I didn't have the money with me as I'd prefer to pay in cash (Im guessing its some form of deposit because of credit history?)

3. Buy the phone which would be £300.

Now this is the first time I've got a phone on contract so I expect there would be credit checks and stuff. However, I am a little confused with the option of paying £100? Is it because I've never had a contract with them before and it's a way to make sure I can pay for the contract? It's kind of weird how it was explained. I'm guessing the 100 quid is a deposit for part of a credit check? I don't have poor credit really but I do have an Argos store card I am still making payments on. Would that be the reason why I need to make a deposit?

[Cleoriff · Accepted solution]

Hi @jennyintokyo

As you haven't had a contract with O2 before, the additional upfront cost was providing extra surety for them. It's quite a common practice.

Had you opted for buying online you would have been credit checked anyway as the computer will do that on all new contract customers.

I can't understand why the CS advisor in the shop was trying to process your card without the additional £100. If computer info was stating the cost + £100 then that's what was required.

The additional upfront cost would have been taken off your overall contract price.

OR

Returned to you after 3 months of making on time payments with no issues

[MI5]

Deposits are requested to cover the first 3 bills and until your credit worthiness is confirmed.
If you default on a bill, o2 will take it out of the deposit and if you pay the first 3 bills on time you can request the deposit be refunded to your 4th bill.

[EmilieT]

Hi @jennyintokyo, and welcome to our forum  I hope the information @Cleoriff and @MI5 shared above helped you understand what happened better, but please do let us know if there's still something the Community could help with!