RBS Charging When You Pay RBS With RBS Card

Elektraman

A supplier of ours assigned their invoice to RBS finance.

We called RBS to pay (with an RBS Mastercard).

RBS tried to levy a 1.74% credit card processing charge (when using their own RBS credit card!).

So in effect the RBS LEFT hand is paying the RIGHT hand and I incur processing charges as a result?

RBS used to own Worldpay (who process RBS credit card payments) and all indications are that RBS pay at least 50% less of a charge than that which they charge.

At this point I have refused to pay the charges, they now wont let me pay the invoice without charges! Cue the debt collection agency next!

I'm sure that RBS are not allowed to do this, just wish I knew the laws around this...

Aquamania

Elektraman wrote: »

A supplier of ours assigned their invoice to RBS finance.

We called RBS to pay (with an RBS Mastercard).

RBS tried to levy a 1.74% credit card processing charge (when using their own RBS credit card!).

So in effect the RBS LEFT hand is paying the RIGHT hand and I incur processing charges as a result?

RBS used to own Worldpay (who process RBS credit card payments) and all indications are that RBS pay at least 50% less of a charge than that which they charge.

At this point I have refused to pay the charges, they now wont let me pay the invoice without charges! Cue the debt collection agency next!

I'm sure that RBS are not allowed to do this, just wish I knew the laws around this...

Presumably the only contract you have enttered into is that with your supplier (which may well include a clause on reassigning what is owed)

So refer to your contract.

Would the supplier have accepted payment by Credit Card? Presumably not if they've now gone to a factor.

But if they would, was there any fee?

So are you saying that RBS will not accept any payment from you in any agreeable form, unless it has a surcharge added above and beyond the agreed contract price?

Sorry, but I find that hard to believe.

I suggest you go and seek independent legal advice both on the questions of law you are uncertain of, and of your probable mis-interpreation of what is now being demanded from you.

(I'm not saying there may be possibilities to pay in alternative ways that may incur additional charges, but I'm sure there is a way to pay the invoice at the agreed contract price)

Elektraman

Thanks for the reply.

We have no written agreement with the supplier, but he used RBS factoring which means we cannot pay the supplier direct.

As stated above RBS wish to charge for using an RBS mastercard credit card to pay an RBS factored invoice.


I could pay by debit card (no fee) but wish to use the credit card option.

dunstonh

As stated above RBS wish to charge for using an RBS mastercard credit card to pay an RBS factored invoice.

The same logo doesnt make them the same company. Someone with a Lloyds credit card would pay the same fee.

A surcharge for credit cards is allowed and is quite normal in some areas of business.

Mallotum_X

Simple solution dont pay with a credit card.

Aquamania

Elektraman wrote: »

...
We have no written agreement with the supplier, ...

Hopefully you will learn from this mistake.
You really should ensure all contracts in business are in writing.

Elektraman wrote: »

I could pay by debit card (no fee) but wish to use the credit card option.

So you could pay the invoice without any surcharge if you want, contrary to what you indicated in your OP

Elektraman wrote: »

At this point I have refused to pay the charges, they now wont let me pay the invoice without charges!

But reading the RBS factoring website, it looks like you won't be too far wrong with this bit, if you continue to knock the supplier

Elektraman wrote: »

Cue the debt collection agency next!

The decision is yours. :cool:

Elektraman

AquaMania, I appreciate your reply but I do have to point out that my opening post stated I was paying via credit card and that it was the use of the credit card that prompted the charges.

I've never stated the charge applied to paying by debit card. I've chosen to pay by credit card as I need to defer the payment to a future point.


dunstonh: I'm not going to state here what field I work in, but the same logo DOES make them the same company in the sense that the parent company owns all subsidiaries. RBS finance, Streamline, RBS factoring etc are all owned by RBS PLC, the one and same company....So if RBS factoring charges me a fee, that allegedly they incur from RBS finance then RBS finance has now gained out of the transaction. At year end all profits and losses are consolidated into RBS PLC.

At this point RBS PLC has made £19 out of me on 1 transaction because the real cost is close to NIL due to the automated clearing systems.

The question then is should I be charged by RBS for a transaction they are handling internally as a group (as opposed to paying with a non RBS credit card which would be cleared by another bank at which point a greater cost is incurred.)

dunstonh

I'm not going to state here what field I work in, but the same logo DOES make them the same company in the sense that the parent company owns all subsidiaries.

Irrelevant. The subsidiary companies are trading independently from each other. It is very common for subsidiary companies to charge the other.

he question then is should I be charged by RBS for a transaction they are handling internally as a group (as opposed to paying with a non RBS credit card which would be cleared by another bank at which point a greater cost is incurred.)

Because it is not being handled internally but through subsidiary companies.

Mallotum_X

You want to pay with a credit card as that's convenient to you. There is a charge applied to credit cards.

There are extra costs associated with handling credit cards, there are also extra protections offered to you are purchaser.

Everything else relating to who issued the card etc is irrelevant.

Aquamania

Elektraman wrote: »

...I need to defer the payment to a future point...

Maybe you too would benefit from using a factoring service?

Elektraman

Thanks for the replies everyone..