Customers sharing bank charges

Customers sharing bank charges

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Our only Swiss customer keeps sharing bank charges which are then deducted when paying remittances to our bank account meaning we never receive the full invoice value. Having contacted them and advised that our conditions of sale stipulate that we are to be paid in full without deductions, so they should select that none of the charges are paid by the beneficiary (us), they still refuse to change the way they pay.

They are saying that sharing charges is standard practice in Switzerland and that all of their payments are made this way. Does anyone know if this is actually true? A quick search on google has been unsuccessful.

The charges aren’t much, but it is the principle of it really that is my issue because we do not know that they have truly ‘shared’ the charges or whether they have just charged them all on to us. We also have no control over the method of payment that they choose to use and as such the associated charges that are incurred.

I think this will come down to whether we are happy to keep writing these remaining amounts off from their sales ledger account in order to keep their custom, or fall out with them and wave goodbye to the customer.

Thanks in advance for your thoughts and experiences.

Replies (8)

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By johngroganjga
11th Dec 2014 10:34

It's up to you.

Either go along with what the client wants

Or tell him that you want full payment of the face value of all your invoices or else

Or gross up your invoices for the bank charges

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By andy.partridge
11th Dec 2014 10:57

Agree with John

Presumably your terms allow you to recharge direct expenses incurred on their behalf so add it to your bill. It's hardly relevant what 'standard practice' is if it is not something you have agreed.

If, otherwise, the client is a good and profitable one you might want to overlook it. Principles can turn out to be costly. 

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By Weald Accountant
11th Dec 2014 11:08

Thanks to you both.

 

Yes I agree ‘standard practice’ does not have any impact on what we have agreed, but I was just interested to know whether that is the norm in Switzerland or whether the customer is just spinning me a few fibs.

 

I shall persevere.

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RLI
By lionofludesch
11th Dec 2014 11:56

How much ?

What are we talking about ?  £20 a remittance or something similar ?

Not much you can do really - even if the customer was in the UK, it wouldn't be worth pursuing through the courts.

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By Democratus
11th Dec 2014 11:58

Rebill the cost on the next invoice

We have a customer who passes on £6 each time we get paid - we merely add this to the invoice so we are only ever £6.00 out cumulatively.

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By Gem7321
11th Dec 2014 15:19

I believe this is actually part of the Payment Service Directive and it is obligatory for banking institutions to enforce the shared charges option when making cross-border payments.  However, I believe it only applies when making payments in euros.  If there is a currency change the payer should be able to accept all the charges. 

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Replying to lionofludesch:
By Democratus
11th Dec 2014 15:29

Swiss not in the bl**dy EU

Gem7321 wrote:

I believe this is actually part of the Payment Service Directive and it is obligatory for banking institutions to enforce the shared charges option when making cross-border payments.  However, I believe it only applies when making payments in euros.  If there is a currency change the payer should be able to accept all the charges. 

 

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By Gem7321
11th Dec 2014 15:34

No but they are a member of the bl**dy EFTA and part of the single market.

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