Rip off BACS CHAPS

[speling bee]

if you cant wait 12 days to get an invoice cleared you may be in the wrong business!

YACNCOTBAC.

z

[jmo21]

ok but if you refuse to pay the fee for BACS what are they going to do?

Send a carrier pigeon with a cheque attached to the leg?

But seriously charging for CHAPS is fine but charging for BACS is taking the mick surely?

As others have said it is actually the fee for paying early, doing the legwork to short cut their process/timelines.

It's not as easy as someone just logging onto their online banking and clicking a few buttons.

[quackhandle]

Hi,

Some bright spark at Lorien has decided to make you wait 12 days to get paid and then if you want paid quicker they charge you £25 for BACS and £50 for a CHAPS.
Now CHAPS doest cost more than £30. So yeah rip off if they all start doing this we're in trouble. IS there somebody I can complain to about this practice?

Regards,

Keith

£50? I used to work in the CHAPS dept for Natwest many moons ago, it was £17 then. But then you'd have corporate clients moving large amounts every day so they got it cheaper.

12 days, I'd be happy with that.

qh

[tractor]

...

The reason they do it is to discourage you from going out of process, it's not to make money, it's designed to be punitive so as to put you off.

If you are in the situation where you need the cash for the first invoice because you have been out of contract for a while, then there is a cost to it - it's not unknown and if you take advantage of it, accept that you have to pay.

It's about being in business.

[craig1]

ok but if you refuse to pay the fee for BACS what are they going to do?

Send a carrier pigeon with a cheque attached to the leg?

But seriously charging for CHAPS is fine but charging for BACS is taking the mick surely?

It's a charge for an out-of-process BACS payment. Most AP teams, including in non-agency companies, have a set payment run process that's fairly well streamlined to do a payment run once every week, month, fortnight or whatever. If you want a payment outside of that process then it will take someone's time to get the payment checked and authorised separately, typed into their payment system then many companies have a second authoriser for out-of-process payments to stop theft and misuse. Charging £30 for this just so someone can get their money a few days early is actually quite cheap.

[tarbera]

Cost prices

Hi,

Some bright spark at Lorien has decided to make you wait 12 days to get paid and then if you want paid quicker they charge you £25 for BACS and £50 for a CHAPS.
Now CHAPS doest cost more than £30. So yeah rip off if they all start doing this we're in trouble. IS there somebody I can complain to about this practice?

Regards,

Keith

as others have said its their time not the banks charges

Actual cost of a CHAPS is about £6 to a bank (anything from that to £30 for a customer)
BACS to customer in about 0.01 p, Faster payment 10 times that of about 1/10th of 1p