Allied Irish Bank (GB)

If you bank with AIB in the UK, do you accept credit/debit card payments?

Up to this month, if we took a card payment, it was credited to our bank account effectively next day, and we could post this to the Customer account as paid in full. 

At the end of the month, we would receive a summary for all card payments, and the amount due for AIB's charges was deducted by direct debit.  This was one single posting to the Purchase accounting side.

WEF July 1st 2020, they are now taking their charges off each individual card payment made to us, hence the payments received don't match what the customer owes.

I have never heard anything so stupid blamed on the Covid-19 excuse, and I have said as much to them.  But AIB will not budge.

Also, we realised they have been charging us the Irish VAT Rate of 23%.  We've been with AIB for over 20 years, and have a six figure turnover, well above the appropriate limit. Now we have to formally notify them of our VAT number, and go through old card summaries to resolve this issue.

To say that I'm angry and confused, is an understatement.

George

  • Hi George,

    Thanks for using Sage City.

    Please let us know if you need any help within the Sage Accounts software.

    Kind regards,

    Sean,
    Sage UKI

  • in reply to Sean White

    Hi Sean,

    This [expletive deleted] bank have imposed a system whereby credit card payments we receive have a charge deducted BEFORE they credit our bank account.  Hence if we post what is received to the customer's account it does not clear the total shown as owed to us.

    Somehow, we need to make a posting in Sage which 1) Clears the customer's outstanding on the Sales Ledger, and 2) Posts that amount to the "Credit Card Charges" account on the Purchase Ledger.

    To add insult to injury, we did not receive the notification e-mail by the bank, which gave us a specific date to opt out of this option, and stay with the normal Monthly system for Credit Card charges.

    Now they point blank refuse to change us!  :-(

    George

  • in reply to George Bell

    Just to add another part to this saga.  Allied Irish move their monthly billing from Belfast to Dublin and we discovered that we were being charged 23% Irish VAT - even though their records did contain our UK VAT number.  They had to admit a serious mistake on their part, and have agreed to refund the Irish VAT, which should have been zero rated anyway!!

    So if anyone is using AIB's Merchant Services, please check your monthly statements, and if you have been charge VAT, create merry whatnot!!!!

    George

  • in reply to George Bell

    Hi George.

    Thanks for the additional information. 

    The only way to post this in Sage would be to post a customer receipt to clear the customers account. Then do a separate bank payment transaction to a nominal code (there is a default nominal for bank charges which is 7901) for the charge that's been incurred. 

    You can post that all within the customer receipt window as well. You would pay the invoice in full > then type whatever charge was against that transaction, in the bank charges column > save it. That posts the same transactions (SR & BP) but saves you doing it as 2 separate ones. 

    I hope this helps on the Sage side of things and you get something sorted with the bank.

    If this has answered your question please click More > Verify Answer.

    Kind regards,

    Sean,
    Sage UKI