Worldpay zinc account closed without warning .

Mr_Poves

Hi guys , as above I'm having a major problem at the moment .
I'm a sole trader and use worldpay zinc for card payments via a chip and pin device , or virtual terminal .
I took a payment last week from a charity to carry out some work for a client (ex serviceman)
Normally within 4 days payment hits my business account , should of been due today as the work was booked on for today and tomorrow.
I rang worldpay and they advised me my account has been closed as a result of a "business review"
Nobody has contacted me or made me aware of any issues regarding this either.
I took the payment 7 days ago and checked online and the payment was processed as normal and had settled in the worldpay account ready for processing to my business account.
So now they are saying they can hold the funds for 120 days , the charity have paid me for a job I can't do nor refund them , and the poor client has been let down at the last minute .
Is this normal practice for card payment handling companies ?
Can anyone advise what I can do from here please ?
I've lost 2 days income , profit on materials , let the customer down , and can't refund the charity ........................

Mattygroves2

I don't really see why you can't do the job or refund the charity. All you've got is a temporary cash flow problem and you shouldn't have that with one late payment. Buy the materials on a credit card or from other customers paying you and get the job done. If necessary raid your income tax pot (assuming you're putting that aside as you go) or personal savings.

In the meantime continue to hassle Worldpay for an explanation and your cash.

If you really need the cash upfront then consider taking cash, cheque or bank transfers which will be cheaper for you anyway as you're not paying Worldpay's charges.

Mr_Poves

I'm only a sole trader , and the account has been closed , so they won't be depositing the funds into my account , this is the problem , and no explanation except , due to a "business review " , it's not just a few quid we are talking about , and there's no way I'm risking doing the job or refunding the payment from my own funds then arguing the toss after when they say the account has been closed , surely that would be lunacy ? .

OhReally_2

Mr_Poves wrote: »

Hi guys , as above I'm having a major problem at the moment .
I'm a sole trader and use worldpay zinc for card payments via a chip and pin device , or virtual terminal .
I took a payment last week from a charity to carry out some work for a client (ex serviceman)
Normally within 4 days payment hits my business account , should of been due today as the work was booked on for today and tomorrow.
I rang worldpay and they advised me my account has been closed as a result of a "business review"
Nobody has contacted me or made me aware of any issues regarding this either.
I took the payment 7 days ago and checked online and the payment was processed as normal and had settled in the worldpay account ready for processing to my business account.
So now they are saying they can hold the funds for 120 days , the charity have paid me for a job I can't do nor refund them , and the poor client has been let down at the last minute .
Is this normal practice for card payment handling companies ?
Can anyone advise what I can do from here please ?
I've lost 2 days income , profit on materials , let the customer down , and can't refund the charity ........................

Mr_Poves wrote: »

I'm only a sole trader , and the account has been closed , so they won't be depositing the funds into my account , this is the problem , and no explanation except , due to a "business review " , it's not just a few quid we are talking about , and there's no way I'm risking doing the job or refunding the payment from my own funds then arguing the toss after when they say the account has been closed , surely that would be lunacy ? .

Really?

Have you referred to the terms of the contract?
https://www.worldpayzinc.com/terms-and-conditions
I have. :cool:

17.2 says they willl give you 2 months notice

Of course there are terms where such notice may not be given, but you've not mentioned anything about those.

Also, term 18.3 says

18.3 Upon or at any time after termination of the Contract, You shall immediately pay Us all amounts owed by You under the Contract and We shall immediately pay You all amounts owed by Us under the Contract, save for any sums which We are entitled to withhold pursuant to clause 10, any sums which We are entitled to set-off pursuant to clause 15.1 and recover any Chargebacks and Chargeback Costs We are entitled to recover pursuant to clause 11.

So unless terms 10, 15.1 or 11 apply (which again you have not mentioned) what makes you think you won't be getting the money owed? :huh:

If you really think they are going to pocket the money, I suggest you seek independent legal advice.
Your post implies they are only going to withhold the money for 120 days, so get on with the job as Mattygroves2 says; it'll be lunacy not to.
It's not as though it sounds like you've anything else worthwhile to do.

zygurat789

Mattygroves2 wrote: »

I don't really see why you can't do the job or refund the charity. All you've got is a temporary cash flow problem and you shouldn't have that with one late payment. Buy the materials on a credit card or from other customers paying you and get the job done. If necessary raid your income tax pot (assuming you're putting that aside as you go) or personal savings.

In the meantime continue to hassle Worldpay for an explanation and your cash.

If you really need the cash upfront then consider taking cash, cheque or bank transfers which will be cheaper for you anyway as you're not paying Worldpay's charges.

Seems like a good reason to me.

Mr_Poves

They told me the account is CLOSED , I presume that means closed as in not able to use again and void .
As far as I'm aware I have not misused the account and had no warning from them .
They have mentioned a hold of upto 120 days on payment , but obviously it won't be coming to me during or after as the account is closed , so frustrating .

Opinion

I had a similar problem with a business bank account; closed without warning after a "business review." I created a thread on here about it but after much trying I got absolutely no where with the bank. I referred to the T&C's like has been suggested in this thread and for every one I quoted that had at least two rebuttals.

My advice would be to take it on the chin and not lose sleep over it, and I wouldn't even waste my time and energy finding out why they have done it. There are plenty of providers out there that you can do business with... I'd put my energy in to finding whomever can offer the best deal.

Mr_Poves

Opinion wrote: »

I had a similar problem with a business bank account; closed without warning after a "business review." I created a thread on here about it but after much trying I got absolutely no where with the bank. I referred to the T&C's like has been suggested in this thread and for every one I quoted that had at least two rebuttals.

My advice would be to take it on the chin and not lose sleep over it, and I wouldn't even waste my time and energy finding out why they have done it. There are plenty of providers out there that you can do business with... I'd put my energy in to finding whomever can offer the best deal.

That's exactly what I'm going to do , had a full day of trying to sort it out , I have contacted the charity (royal british legion) and advised they contact their bank and request a chargeback .
For anyone else who happens upon this thread , the problem relates to a customer not present fraud liability , basically they are liable for any fraud for 120 days if payment is taken over the phone instead of chip and pin , so having put a hold on the payment , and closing my account they expect me to wait 4 month's for the payment , if it actually appears that is , they can keep dreaming , I think the lesson is , they may be ok for small chip and pin transactions , but use the virtual terminal at your own peril , as the above poster mentioned they use every loophole to get out of it , the payment was due tuesday , but my account closed on wed , they say the hold was placed on tues , how convenient , thanks for the advice everyone .

Mr_Poves

OhReally wrote: »

Really?

Have you referred to the terms of the contract?
https://www.worldpayzinc.com/terms-and-conditions
I have. :cool:

17.2 says they willl give you 2 months notice

Of course there are terms where such notice may not be given, but you've not mentioned anything about those.

Also, term 18.3 says



So unless terms 10, 15.1 or 11 apply (which again you have not mentioned) what makes you think you won't be getting the money owed? :huh:

If you really think they are going to pocket the money, I suggest you seek independent legal advice.
Your post implies they are only going to withhold the money for 120 days, so get on with the job as Mattygroves2 says; it'll be lunacy not to.
It's not as though it sounds like you've anything else worthwhile to do.

I did quote the terms to them , but they have a comeback for every one of them , thanks for looking into this for me though .

Mattygroves2

Have they said they will hold onto the cash for 120 days and then pass it on or are they proposing to return it to the RBL ? Normally on account closure all funds are returned less charges due obviously.

If they are intending to do neither of these things then you might as well start the small claims process now.

ffghugsf

Mr_Poves wrote: »

I did quote the terms to them , but they have a comeback for every one of them , thanks for looking into this for me though .

Perhaps if you were to tell us the whole story? :cool:

Start by telling us what the explanations are they have given you.

A 'business review' does not address any of the terms OhReally has pointed out to you. So what were the 'comebacks' of which you speak??? :huh: