Natwest charges advise taking £100s per month

Ergates

kash2001 wrote: »

As said they didn't charge originally, what service are they providing the money is coming into the account not out of it. Its a computerised event coming from another account so what's the cost to them.

Their charging about. 50p or so a transaction, they charge for everything else and so they've decided to finish the job.... 😂

The service they're providing you with is the ability to receive standing order money transfers. They still have to maintain and operate the money transfer systems, which cost money. If the transfer is between banks, they will need to subscribe to an external transfer mechanism... which costs money. Banks don't charge retail customers for setting up standing order payments, the costs are transferred to the receiving businesses, in this case, you.

Do you also complain when the post office what paying to deliver a letter?

[Deleted User]

kash2001 wrote: »

Thanks for your blunt reply... I don't need to be taught to suck eggs. Thanks. What I'm asking is if anyone knows if standing orders can move to another account or bank outside of natwest or if Natwest can just impose this.

I'll look at getting the terms of the original agreement and see what's stated if they'll even forward the terms from 18 years ago.

The original agreement would be null and void if they sent out updated terms to you and you stuck with the account.

meer53

Lots of banks let you switch your business account, time for you to move banks. Check out their charges first though !

GDB2222

I have a Natwest business account, and I pay something like 35p for each incoming payment. I assume therefore that you must have around 300 standing orders set up into your account, and I agree it would be loads of work to move all of them.

I can only suggest you accept the cost for the time being, set up a new account to run in parallel, and put all new business into that. You can then gradually move existing customers over, a few at a time, so you can manage it.

agrinnall

I haven't looked into it in any depth but there the Current Account Switching Service is available for some small businesses, and if it works the same way as for personal accounts then incoming payments will be forwarded, at the moment I believe for an indefinite period.


https://www.currentaccountswitch.co.uk/howtoswitch/Pages/How.aspx#howToSwitchBusiness

kash2001

Thank you GDB2222 great advise. We went for a business lunch and discussed this exact option, my only thought on it was that a new bank could do similar in charging in a year or so time and we may be in the same situation. ..

So maybe a direct debit may be finally the way to go, as I thought they could move across banks easier but I may be mistaken over this. Thank you for your constructive advise.

Many thanks also to agrinnall I'll check the link and see what options are available, again some good advise.

Atb

jonesMUFCforever

kash2001 wrote: »

Thank you GDB2222 great advise. We went for a business lunch and discussed this exact option, my only thought on it was that a new bank could do similar in charging in a year or so time and we may be in the same situation. ..

So maybe a direct debit may be finally the way to go, as I thought they could move across banks easier but I may be mistaken over this. Thank you for your constructive advise.

Many thanks also to agrinnall I'll check the link and see what options are available, again some good advise.

Atb

You have not disclosed the annual turnover or how many standing orders we are talking about? Is there any cash or cheques paid in as well?

Most banks treat 'digital' credits ie online, S/O and faster payments as free - so indeed monthly bank charges of £75 should be looked at.
Does your bank offer a digital charging system?

kash2001

Yes theyre are some cheques but mainly just clients setting up the standing orders.

It seems from others It doesn't matter what the original agreement is they can just change it and if you continue then you've agreed ��

I'm going to look to move over time I think as Natwest are charging too much for this service as far as I'm concerned. They'll be earning nicely of the interests of balances, overseas markets etc so I can only vote with my feet over a period of time. Just a shame after years of loyalty and business.

Never mind we'll have to move on.

Thanks all those with good contributions. Atb

Flobberchops

At the risk of labouring the point, banks don't, and indeed can't, simply change their fees or policies on a whim and without notice. You would have received a letter from your business banking team detailing the tariff changes in advance. If you choose to continue using the service after this, then yes that's a very real and legally binding indication of your willingness to be bound by the revised terms of the banking arrangement.


Banks sometimes have preferential rates or the discretionary ability to waive fees for charities and small start-ups, is it possible you once qualified but no longer do?


By all means shop around and if another bank provides an equal service for fewer fees, take your business there. You could even take this evidence of lower fees to your business banking team (don't wave it under the nose of one of the frontline "drones", they don't have the authority to set business rates) and see if they would be willing to match the competitor's rates to keep your custom. But at the end of the day it's a free(ish) market and as the customer you have the ability to choose where you do business. Your customers would likely use a competitor if they offered the same service for cheaper, so why shouldn't you?

Prism

I originally used Natwest for my business bank account as there were no fees for online transactions, standing orders etc. Then they changed the terms and conditions and introduced a charge per transaction. My low cost banking option disappeared

Last year I got notice from the Natwest that they wanted me to leave business banking. I am not sure how many companies got this notice. I opened up a Starling business account and began to use it.

This February I got my banking switch offer from Natwest which included Starling on the list, so I did the switch which moved all of the direct debits. I can't think of a solution for incoming standing orders though.

As an aside, my business was paid a switch bonus of £1000 to perform this switch. To think I almost closed the account manually last year.