Umbrella Companies - bank charges for same day payments

[Epiphone]

Simple answer is they don't need to justify it. They're a business and are selling a priduct/service. If you want to upgrade to a faster service then you pay what they're charging. There's no right or wrong here - it's just business.

[Vallah]

Actually banks don't work in that way. The fee structure for BAC's payments and Faster Pay payments is different with FP's being more expensive

Which bank do you use? 99% of our payments go automatically by Faster Payments which cost us 50p a transaction to send.

[Vallah]

Simple answer is they don't need to justify it. They're a business and are selling a priduct/service. If you want to upgrade to a faster service then you pay what they're charging. There's no right or wrong here - it's just business.

It isn't just business if they're saying they're sending payments by BACS when in reality they go by Faster Payments, and then charging a premium for same day payments.

[LisaContractorUmbrella]

Which bank do you use? 99% of our payments go automatically by Faster Payments which cost us 50p a transaction to send.

Gosh aren't you the lucky one

[Vallah]

Gosh aren't you the lucky one

Care to answer the question Lisa?

[SueEllen]

Banks will automatically send payments by the quickest available method. For the vast majority of payments this will be Faster Payments and not BACS. So claiming that BACS is the default method, and then whacking on a huge fee for a same day payment is not on. Unless anybody from a brolly firm would like to deny that this is what happening and explain how they can justify charges from £12-£30?

I haven't claimed BACs is the default method.

I'm just pointing out to you that you may send me £5K by FP from your business current account but depending which of my personal current accounts you send the money to I could receive it within 6 minutes or I could receive it 3 days later.

That's because different banks who provide personal current accounts have different incoming FP limits.

If I want you to send the payment to ensure I receive the same day to my current account that takes 3 days then you would have to use a CHAPs transaction.

If you provided me with a service that promised same day payment I would be extremely pissed off if you sent it to my personal current account and it arrived 3 days later regardless of whether it was free or not.

[Vallah]

I haven't claimed BACs is the default method.

I'm just pointing out to you that you may send me £5K by FP from your business current account but depending which of my personal current accounts you send the money to I could receive it within 6 minutes or I could receive it 3 days later.

That's because different banks who provide personal current accounts have different incoming FP limits.

If I want you to send the payment to ensure I receive the same day to my current account that takes 3 days then you would have to use a CHAPs transaction.

If you provided me with a service that promised same day payment I would be extremely pissed off if you sent it to my personal current account and it arrived 3 days later regardless of whether it was free or not.

All of the main high street banks have a £10K limit or more. For payments above that it would default to BACS, or you could send by CHAPS, or better, split the payment into two. I'd like to know what banks the umbrella firms use that Faster Payments isn't the default option, and doesn't result in contractors receiving their money the same day. It all sounds decidedly iffy to me, and an artificial way of increasing profits.

[LisaContractorUmbrella]

All of the main high street banks have a £10K limit or more. For payments above that it would default to BACS, or you could send by CHAPS, or better, split the payment into two. I'd like to know what banks the umbrella firms use that Faster Payments isn't the default option, and doesn't result in contractors receiving their money the same day. It all sounds decidedly iffy to me, and an artificial way of increasing profits.

According to your profile Vallah you are an offshore service provider although you haven't seen fit to include your company name for some reason; perhaps before you start criticising the way other businesses operate you should disclose your own charges and business practises just so we can be sure you're not up to anything 'iffy'

[Vallah]

According to your profile Vallah you are an offshore service provider although you haven't seen fit to include your company name for some reason; perhaps before you start criticising the way other businesses operate you should disclose your own charges and business practises just so we can be sure you're not up to anything 'iffy'

Why are you being so evasive Lisa, something to hide?

[LisaContractorUmbrella]

Why are you being so evasive Lisa, something to hide?

Hi Kettle my name's Vallah - you're black! I have nothing to hide - everyone on here knows how I run my business - shame we can't say the same about you