allocating bank charges on CP

Hi, I have a customer payment which includes a bank charge, the customer pays "X" amount, "Y" is deducted when it hits our bank. Each payment is short the "Y" amount which is a bank charge. Previously the person I took over from was putting on the payment for the "X" amount and then putting the "Y" amount in as a separate supplier payment of a bank charge so the bank amount would balance. Is there a better way to do this? I want the bank charge to be linked to the customer payment, the customer should in theory be paying extra to cover the charges, and in theory the amount that reaches our bank should be entered onto their account and the balance left owed. 

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    Legally should the customer be paying the charge (£Y) in addition to the advertised price (£X)?

    In 2018 the UK Government banned surcharges (In line with the EU)  which merchants were using to cover transaction fees.  The price the customer pays should be independent of the method of payment - any transaction fees are a cost to the business (an expense in the P&L) of using that transaction mechanism.

    If you are advertising your good or service at a specific price (£X), then you need to take into account any potential transaction fees (£Y) in that advertised price (to ensure you still make an overall profit/surplus).

    By suggesting in theory you want the customer to pay the transaction fee (to bring the amount you receive up to the advertised cost, paying a total of £(X+Y) for a good/service advertised as £X) it sounds extremely like you are wanting in theory to create a surcharge.

Reply
  • 0

    Legally should the customer be paying the charge (£Y) in addition to the advertised price (£X)?

    In 2018 the UK Government banned surcharges (In line with the EU)  which merchants were using to cover transaction fees.  The price the customer pays should be independent of the method of payment - any transaction fees are a cost to the business (an expense in the P&L) of using that transaction mechanism.

    If you are advertising your good or service at a specific price (£X), then you need to take into account any potential transaction fees (£Y) in that advertised price (to ensure you still make an overall profit/surplus).

    By suggesting in theory you want the customer to pay the transaction fee (to bring the amount you receive up to the advertised cost, paying a total of £(X+Y) for a good/service advertised as £X) it sounds extremely like you are wanting in theory to create a surcharge.

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