Debit Card Con by Plus net

[#1]

Quote from: thisoldman

Lloyds bank assured me the proposed fee was extortionate

Coming from a modern bank that's rich. Just have your account out of order for a few days, or want a special service, and see how their charges mount up! In comparison PN is a pussy cat.
Sounds to me that the clerk was sympathizing to get away from a ranter and do his job, Canny lad

[#2]

Quote from: thisoldman

Every one of them said yes   you are being ripped off, the fee should be less than 20p

20p is less than what it costs us so quite what information they're basing this on I don't know?

[#3]

Quote from: thisoldman

last post on this topic. I have contacted 3 major high street banks and asked them is a processing fee of 1.50£ excessive on a debit card payment of 11.99£ Every one of them said yes   you are being ripped off, the fee should be less than 20p

How the hell would they know what Plusnet's administrative costs would be for dealing with failed payments?

[#4]

One assumes that these are the banks that ran their own businesses so badly that they had to be bailed out by the state 
How much credibility do we give their opinions?

[#5]

Quote from: Bob

20p is less than what it costs us so quite what information they're basing this on I don't know?

Merchant fees (charged by banks for card transactions) are typically quoted around 2%, or about 20p on a £10 bill.  Which Magazine quoted 0.1p for debit cards and 0.8% for credit cards, and had this to say on the matter.  “There can be no justification for high card surcharges as all too often they just seem to be an excuse for ramping up costs."
Whilst I take the point about card collection rates, guilt by association can never be described as fair.  i.e. Penalising those that pay by card on time, because some other people that pay by card do not pay on time.  It is a dubious practice, similar to market area being a dubious practice, in so far as minorities within the customer base are being isolated and financially exploited.  An intricate and confusing price list becoming hidden behind the counter point marketing, that BT are famous for.
E.g. "PN can not be beaten on price..."  In some specific circumstances but in a lengthening list of other circumstances, they can be.  Hence the claim is dubious.
Where does this leave new sign ups?  The DD validation process can be painfully slow.  I am in the habit of telling my referrals (mainly businesses) to put the first month on CC, which avoids delaying the delivery of my service.  Are we basically saying that I need to add £1.50 onto the other costs hidden behind the PN sign up process?
However you want to dress it up, PN are now charging around 5% to 15% extra (depending on subscription) for a service that was previously included within the wider service charge.  Such a price hike is, in most economically astute books,  extortionate.
http://www.which.co.uk/about-which/press/press-releases/product-press-releases/which-money-magazine/...

[#6]

thisoldman,
there is nothing wrong with complaining about it.
But equally, this is the commercial world.
What Plusnet are effectively saying with this charge is that "their preferred means of payment is Direct Debit as it minimises administrative problems, minimises failed billing, minimises charges, and means they can get on with providing broadband for the cheapest prices. If you choose to use a different payment method you can, but it will cost you."
I might personally think the fee is a little steep, but equally it is a commonly charged amount with other suppliers (BT being one such supplier charging £1.50 per month since 2007, and is probably the most pertinent example given Plusnet's ownership!). However, I recognise any company's right to set it's own tariff, along with my own right whether to use them or go elsewhere.
A few years back, I used to pay my broadband bill by credit card since I got cashback from the card... so it made sense to put ALL eligible purchases on the card to maximise payback! A few years back I switched to Direct Debit, because it was requested (would that have been for shift to home phone?).
Mike
ps... as an aside related to credit card fees, all of the fees I mentioned in my last post still don't aid with protection against fraud. The business gets all money used fraudulently clawed back by the merchant account supplier, along with suitable fees on top, leaving them the ones out of pocket... and for this service they pay money on every sale! You can see why companies have a love/hate relationship with credit cards! They are convenient, and allow customers to spend (whether they have enough money to or not), so allow large impulse spending, but the business gets stung for the fees and potential losses if there is fraud.
If I was in Plusnet's position, I would be wanting to minimise the use of credit cards within my business, and the best way to do this is to charge a high enough fee to "persuade" people to change over... and that is exactly what Plusnet have done here. The real problem here is the fees the credit card companies / merchant suppliers  charge for handling the transactions... if you want to complain to someone it would be them!
By the way, Lloyds own merchant account refuses to disclose their scale of fees on their website (probably too embarrassed to quote them!), but confirm they charge a flat fee for debit cards, and a percentage fee for credit cards, as well as monthly fees too.

[#7]

Quote from: xpcomputers

By the way, Lloyds own merchant account refuses to disclose their scale of fees on their website (probably too embarrassed to quote them!), but confirm they charge a flat fee for debit cards, and a percentage fee for credit cards, as well as monthly fees too.

I have posted in the other thread that before I retired we were paying 1.6% on credit cards (except American Express).  I can't remember the exact figure on debit cards but I seem to think it was around 50p per £100.  If PN has any sense they will piggyback off the BT rates which will be some of the best that can be arranged I guess.

[#8]

Debit card rates can't be too high or supermarkets wouldn't operate cash back at the tills - I realise that it does cut down on banking costs as well.
Still would never give any company a cca.

[#9]

Quote from: mssystems

Where does this leave new sign ups?  The DD validation process can be painfully slow.  I am in the habit of telling my referrals (mainly businesses) to put the first month on CC, which avoids delaying the delivery of my service.  Are we basically saying that I need to add £1.50 onto the other costs hidden behind the PN sign up process?

No. You will still be able to pay the initial subscription by card and it *wont* be subject to the £1.50 processing fee.

[#10]

I would imagine that may be the opinion of the individual cashier/employee that you spoke too, you can bet your bottom dollar it won't be the official Bank line if you could get an official response.
Try buying tickets from Ticketmaster 

[#11]

Quote from: mssystems

The DD validation process can be painfully slow.

Unless the slowness of the set-up is caused by the originator, and you have no proof that PN's systems are slow in that regard, your comment is irrelevant to the matter of charging for card payments. As large organisations often use the paperless method
 

Quote

, PN are now charging around 5% to 15% extra (depending on subscription) for a service that was previously included within the wider service charge.   /

[#12]

Ooops I forgot to repy to
Quote
, PN are now charging around 5% to 15% extra (depending on subscription) for a service that was previously included within the wider service charge.
Don't be naive! The work and inconvenience of dealing with bounced items is the same whatever the amount involved,

[#13]

Quote from: lucerne

Unless the slowness of the set-up is caused by the originator, and you have no proof that PN's systems are slow in that regard, your comment is irrelevant to the matter of charging for card payments. As large organisations often use the paperless method

The point he was making was that Plusnet themselves say that DD add delays to sign up process, and therefore PN advise that first payment is made on a credit card for faster sign up, with future payments being made by DD.
It was therefore a very valid concern to raise, but Bob has since confirmed that these initial payments by Credit Card won't be subject to the £1.50 fee.... so no concerns remain! (at least with that aspect!)
Mike

[#14]

I do not think £1.50 is excessive but Virgin Media on the other hand charge £5 for card payments, now that IS EXCESSIVE!

[#15]

High street banks should be the last people to dictate what is excessive!
I haven't forgotten the unfair bank charges fiasco ie £30.00 plus charged for going overdrawn by a few pence.
Direct Debit is the best way, as long as it's not returned to you unpaid for the reason I outlined above.