BT payment processing fee - What can we do?

willispv

If you are a BT customer, you may have noticed that they charge you to pay your bills online using a credit card, or a direct debit card (current account card). Only if you sign a direct debit are you free from a "Bt payment processing fee".

I am charged £4.50 per month to pay the bill by a direct debit card. As far as I am aware, I have never been charged for using this card by any other organisation, and for one simple reason......the seller is not charged (anyone who knows better please correct me). I understand that the use of a credit card elicites a charge for the seller, and some sellers pass this on. But why a charge for a direct debit card? What does it cost BT? The transfer of funds is electronic, and the receipt is electronic.....what am I paying for?

Today I paid my bill. This time I sent the money from my bank to BT - a push of funds to BT, rather then a pull by them. I know my bank will not charge me for this as online banking is free for me. So will BT charge me for sending them money? I wait with baited breath.

If anyone else feels angered at what I would describe as an additional BT tax, perhaps someone with the know how could raise this issue to a higher level.

Regards, Pete.

Heinz

willispv wrote: »

I am charged £4.50 per month to pay the bill by a direct debit card.

You are not charged £4.50 per month, you are charged £1.50 per month (£4.50 per quarter) and that is a great deal less than Virgin Media's £5 per month (£15 per quarter) charge.

This has been discussed many times and has even been taken as far as court by one solicitor. The charge was ruled to be legal.

The ethos of this site is money saving and, as such, the advice is play their game, set up a Direct debit and save money. You will have the protection of the Direct debit guarantee if an incorrect amount is taken and can demand your bank immediately refunds any amount you allege was taken incorrectly (you don't even have to prove that).

Ypaymore

BT have been taken to court a few times on this and it has been deemed to be a lawful charge on each occassion.

Did you not agreed to their terms of business which are that you will pay them within 10 days and if not by Direct Debit then you will pay them a fee.

If you dont like it you can always move to another supplier that does not raise such a charge. EG Post Office Homephone,

forgotmyname

Setup a direct debit & pay before they take it. sorted.

willispv

Heinz wrote: »

You are not charged £4.50 per month, you are charged £1.50 per month (£4.50 per quarter) and that is a great deal less than Virgin Media's £5 per month (£15 per quarter) charge.

This has been discussed many times and has even been taken as far as court by one solicitor. The charge was ruled to be legal.

The ethos of this site is money saving and, as such, the advice is play their game, set up a Direct debit and save money. You will have the protection of the Direct debit guarantee if an incorrect amount is taken and can demand your bank immediately refunds any amount you allege was taken incorrectly (you don't even have to prove that).

Yes, it is per quarter not per month - my mistake.

However, I take issue with the rest of your text. The ethos of this site is not just money saving, it is also fighting financial wrongs. Martin's crusade on bank charges being a fine example. To sit back and accept what is unfair, is to support those that are unfair.
I have explained why I feel BT fees are unfair, so unless you wish to rebut those points your reply is merely saying BT can do what they like......I expect more from a business, from this site, and from its contributors.....I dont suppose you have BT shares by any chance :-)

Please let me end by saying I am not interested in argueing, as that is counter productive. I would ask that you only post to this subject if you wish to be postive about what can be done to deal with this wrong. The central point being that this is an unfair charge, and is not standard corporate practice.

Heinz

Take forgotmyname's advice then.

Set up the required Direct Debit BUT pay online in sufficient time to prevent the Direct Debit being called.

That will mean you don't get charged the 'non DD' fee but also prevent DD calls and, instantly, you have righted the wrong to which you consider you have been subjected.

iniltous

willispv wrote: »

Yes, it is per quarter not per month - my mistake.

However, I take issue with the rest of your text. The ethos of this site is not just money saving, it is also fighting financial wrongs. Martin's crusade on bank charges being a fine example. To sit back and accept what is unfair, is to support those that are unfair.
I have explained why I feel BT fees are unfair, so unless you wish to rebut those points your reply is merely saying BT can do what they like......I expect more from a business, from this site, and from its contributors.....I dont suppose you have BT shares by any chance :-)

Please let me end by saying I am not interested in argueing, as that is counter productive. I would ask that you only post to this subject if you wish to be postive about what can be done to deal with this wrong. The central point being that this is an unfair charge, and is not standard corporate practice.

Although the point of this forum is saving money, isnt there also room for balance ? , yes BT is underhand in charging a payment processing fee, but as other posters have said some companys charge more (Virgin charge £5/month more than 2.5x what BT charge), and other companys do charge card processing fees ( Sky charge 0.50p if you pay by card) then there are companys who wont take your custom unless you pay by direct debit.....this payment processing fee was also discussed at length at the time it was introduced, so is quite old news, so lots of peoples indignation has dissapated.
So to be constructive, what can you do, if you dont want to sign for direct debit with BT, then you could move to a provider that doesnt insist on direct debit or charge more if you if you dont use direct debit, that probably leaves the Post Office, who (I think) allow you to pay at the P.O counter, but I dont know if paying by card over the phone or on line is 'free' with them.

Stuart_W

The Post Office home phone will allow payments in cash at the post office, over the phone or by direct debit for the same price.

OldGreyFox

willispv wrote: »

The central point being that this is an unfair charge,

The Judge thought otherwise.

http://www.dailymail.co.uk/news/article-548010/Grandmother-loses-David-Goliath-court-battle-BT-4-50-direct-debit-charge.html

Ofcom think it is reasonable for those consumers who cause the extra costs for not paying by dd to pay for them as long as they are clearly explained and fair.

http://www.ofcom.org.uk/consult/condocs/addcharges/faq/

justaguy_3

Friends,

According to their most recently published annual accounts, "BT Payment Processing Limited" made a NET PROFIT over 41 MILLION POUNDS for the year ending 31 March 2009. That's AFTER expenses. Robbery!!

Their gross income from the payment processing fee was over £100 MILLION POUNDS. That works out to an average of over 5.5 MILLION customers (£4.50 x 4 per bills per year) who are getting zapped every year by this con.

Remember, this is separate from the £7.50 late payment charge.

You can download the accounts from the Companies House website
www dot companieshouse dot gov dot uk
for one pound (yes, just £1)

Imagine going to the supermarket for your weekly family shop of around £100 (amount like your quarterly phone bill), week in week out, year in year out. Suddenly, the shopkeeper says: "Unless you give me your bank details so I can take money from your account in advance, as I please, I'm going to charge you £4.50 for the pleasure of taking your cash." Crazy.

Let's keep fighting this ridiculous charge.
Write to your MP! Write to the press!

Mark_In_Hampshire

Personally I think you'd need to be mad to give BT (in particular, but goes for anyone) open access to your bank account in the form of a direct debit mandate, but some people are prepared to do so (about two thirds of people, I believe)

The answer is to change supplier.