Paying BT by bank transfer....why the charge?

loopholes

With BT bullying everyone to pay by direct debit, by penalising all other forms of payment, I am wondering why it is that they penalise the bank transfer method of payment.
I have been looking at this for a few days now. An online bank transfer using the Faster Payments method (between a customer's bank and BT's bank) is an electronic, rapid payment method. Therefore, BT should not be charging "processing fees" on such a method.

I have found no sensible way to speak to BT about this (bar phoning them up and I won't do that at the moment until I've got more information). I actually posed the question on their chat-line and the woman had to go away for ages to get an answer; which was the usual parroted "only direct debit is free of charges". When I asked why, she obviously didn't know.

I investigated this further and discovered that, in fact, on one of BT's own pages they state that customers may be able to make their payments by online bank transfer and that they, BT, (quote) DO NOT CHARGE FOR THIS FACILITY.(end-quote).

So, what is exactly is the truth then? So far, no-one has given me a straight answer. I paid our phonebill today by bank transfer and deliberately deducted their processing fee, just to see what will happen. If they complain about it, I will be taking it further. BT does not need to charge processing fees when I have placed the money directly into their bank account.

So, how about some answers from some of you? Or are you all apathetic direct-debit converts?

crazyguy

Yes you have a fee as a direct debit is paid automaticly every month and they only see your account flag up if the DD bounces so this means that someone has to arrange contact with you over the unpaid bill, Your choice not to pay by DD so you will incurr charges as the payment needs to be checked at there end and then entered on the system as a payment onto your account, thats why you get a charge, resonable or cheap maybe not but if you dont like to pay the charge simply set up a DD.

loopholes

The payment has to be checked at their end.....you mean they don't check all the direct debits that they receive, either?:eek:
I don't consider that to be acceptable. Direct debits are paid into their bank directly, as is a bank transfer. Both would have to be "entered" into their system and someone would have to do the looking.
You also didnt respond to the part I quoted about BT not charging for bank transfer facility.

Heinz

An interesting intellectual question but largely irrelevant because BT's T&Cs clearly state that any payment method other than Direct debit will incur the charge.

Online transfers (you setting up a BACS or Faster Payments transfer of funds from your own bank account to another's bank account) are not chargeable per se but such a payments are still 'other than Direct debit' and so still incur BT's 'other method of payment' charge.

BTW, a lady (a solicitor, IIRC) took BT to court over this a year or two ago and spent a large amount of money losing a similar argument.

mjm3346

loopholes wrote: »

I paid our phonebill today by bank transfer and deliberately deducted their processing fee, just to see what will happen. If they complain about it, I will be taking it further. BT does not need to charge processing fees when I have placed the money directly into their bank account.

Why woud they complain when they can just send you a reminder, start adding late fees, cancel your service and trash your credit file.

Underpayments and late payers would be a couple of reasons why they charge for non DD payments - a DD collects the full amount and when they want it so nothing to check (payment refusals would be flagged by the bank).

Buzby

Heinz wrote: »

BTW, a lady (a solicitor, IIRC) took BT to court over this a year or two ago and spent a large amount of money losing a similar argument.

I'm sure she was sponsored by BT, as ther pursuit was lamentable and did not even touch on the real issues of electronic transfers. As I recall, she was a property solicitor, and not used to litigation.

That said, the reason fpr the charge is to ensure all who are easily led into abrogating their financial independence, do so. I value the fact I'm responsible enought to know who and when to pay, thant leave them the key under the mat to my bank account. Sure, it might cost me more, but at least I do not have to stand over my bank account statements with a shotgun.

As will be seen from other threads, the reason why the discount is given is because firms like taking control of their money, and whilst there is no need for an 'unspecified amounts on unspecified dates' mandate, that is what they ask for, and the Direct Debit 'guarantee' means nothing when it all goes wring and they line to to take additional charges.

I'd rather be vigiland and poor, than slap-dash and trusting.

loopholes

Online transfers (you setting up a BACS or Faster Payments transfer of funds from your own bank account to another's bank account) are not chargeable per se but such a payments are still 'other than Direct debit' and so still incur BT's 'other method of payment' charge.

Precisely my point, such payments do not attract charges but BT still thinks it has the right to charge for something that in effect carries no cost to them. I dont care about what happened to the lady solicitor, I'm only interested in what I read on the BT website;

I can't post the link because I'm not allowed to, but it's in the BT-Help-How can I pay my bill section.

it says
You may be able to pay your bill through a simple bank transfer from your current account, over the phone or online. We don't charge for this facility, but you should check with your bank or building society concerning any charges or terms and conditions that might apply. You will need to quote our bank account number (00375853) and sort code (20-00-00). You may also be asked for a reference number - please use your BT account number (shown at the top of your bill, for example EA12345678).

If that is the case then their terms and conditions are at odds with what is on the website. Sorry folks but I dispute the answers from most of you.

DVardysShadow

Move to Post Office phones. They don't charge you to pay them and you can pay quarterly by cheque or whatever.

Gordon_Hose

Why can't you just set up a Direct Debit?

DVardysShadow

loopholes wrote: »

Or are you all apathetic direct-debit converts?

Gordon_Hose wrote: »

Why can't you just set up a Direct Debit?

Some of us don't like companies having - and abusing - unlimited access to the money in our accounts. When my DD's have been changed and I have asked for the justifying calculation, I have always been refused.

Heinz

http://bt.custhelp.com/app/answers/detail/a_id/9855/~/how-can-i-pay-my-bill%3F

You appear to have missed the more prominent aspect of that page:

Information about the payment processing fee

Customers choosing not to pay by Whole Bill Direct Debit or Monthly Payment Plan will be charged a payment processing fee of £1.80 a month / £5.40 a quarter. The payment processing fee will be charged by BT Payment Services Ltd, a separate BT Group company. This fee is one of the lowest in the industry.

The fact that there is a later mention that BT does not charge (extra) for another method of payment does not negate that.

But good luck if you intend to take the matter further.