Perhaps lompos has never worked in an accounts environment.

A direct debit submission may contain thousands of items but only one total will appear on the bank statement.  Each BACS/electronic transfer will generate an entry on a bank statement.  Each entry will need to be reconciled by one means or another.  Furthermore, bank charges are usually based on the number of entries on a bank statement.  The outstanding accounts list will need to be monitored to see who has paid and who has not.  Chasing letters will need to be sent out to those who have not paid on time.  You must remember that BT require payment by the 11th day after the date of the bill.  Do you always arrange your holidays so that you’re never away when the bill is due?

With a direct debit, it is only necessary to look at the exceptions – i.e. those where the direct debit is rejected or the mandate is cancelled.

lompos wrote on Feb 29^th, 2008 at 2:34pm:


You haven't factored in that you are also paying extra for being considered a likely greater credit risk by BT.  Also therefore the greater risk they will have to spend money on chasing you for any unpaid bills.

I know you of course you will say you aren't but they are appying a very sweeping generalisation that by and large those who pay DD always pay their bills and on time and that those who resist DD are frequently people who have issues with paying their bills at all.

NGMsGhost wrote on Feb 29^th, 2008 at 4:20pm:

That's because the card companies charge them a % of the amount you're paying (IIRC, it's between 1½% and 4%) and they want you, their customer, to pay the charge they have to pay to receive your money.

It keeps a lot of people in work these days, shuffling electronic money around from one organisation to another.

Janitor,

NGMsGhost beat me to it. I could list a bucket load of cases where you pay different fees depending upon your method of payment. I have just done so with a flight, ski pass and train journey. It is the norm in Europe.

I still stick by what i said,  the price  should be the price which ever way you pay, if your credit card wants to give you cash back for using that fine , how would you then feel if the company said you get cash back for that so i'm charging you 1% extra , if your local supermarket wants to give money off your phone bill vouchers would you want the company to charge you extra for using these vouchers, the way you pay should have no effect on the price .

Janitor,

You are ignoring reality. Many organisations charge different prices depending upon how you pay. I quoted some examples above. Try booking a Ryan air flight the price will vary in several ways depending upon the payment type. In Europe it is very common. For instance I paid 5 SF to use my credit card to pay for a ski lift pass. If I had used cash there was no charge. Businesses offer discounts on quick payments and surcharges on late payments and discounts on DD and charges on C Cards.

They prefer ceretain types of payment methods so offer incentives for you to use them and disincentives for you not to use others.

If it is open and clear how can you possibly complain.

Another thing that intrigues me about the payment charge is that BT charge £1.50 per month - i.e. £4.50 per quarter.
As I pay my bill quarterly, how can there be a payment charge every month. As I don't make any payment during 2 months of the quarter, why am I being charged a payment fee?