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International Bank Transfer Fees Causing Invoice Short Payments

Himanshu
Edited
  • Account name - New Zealand International Convention Centre
  • Region - APAC
  • Client version (Enterprise) - 25.3 (upgrading to 26.1)
  • Description of the issue
    • NZICC issues customer invoices that can be paid by credit card or bank transfer. For international customers (e.g. Australia > New Zealand), bank transfers often incur international banking fees. These fees are deducted before settlement, resulting in short payments.
    • NZICC cannot determine the payment method at the time of invoicing. The payment method is only known after funds hit their bank account, at which point the invoice is already underpaid and NZICC absorbs the fee.
  • What does the client want to do? Why do they want to do this?
    • NZICC wants a way to pass international bank transfer fees to the customer when a customer pays via bank transfer, so:
      • Invoices settle in full
      • NZICC does not absorb international banking costs
      • Short payment reconciliation is reduced.
  • Please give a descriptive user story. Often clients want to solve a problem by doing X. If we know the problem, sometimes it can be solved via Y.
    • As a finance user at NZICC, I want international bank transfer fees to be charged to customers who pay via bank transfer, so that invoices do not remain underpaid due to bank deductions outside our control.
  • What you've already tried or suggested. Why does this not work?
  • Business impact if not resolved
    • If unresolved, NZICC will continue to:
      • Absorb international bank fees
      • Manage frequent short payments manually and volume of transactions may arise in future
      • Experience revenue leakage and increased finance overhead
  • Attach relevant files (such as screenshots) - MoPay Page below shows that fees can be configured for bank transfers but would this be valid for international payments.

    • MoPay Page
       

  • Links to articles where you've looked for solutions and also other steps you've taken to research the issue.

Some questions here:

  1. Are bank transfer fees configurable within Momentus Payments?
  2. Can the system differentiate between domestic vs international bank transfers?
  3. Can international bank fees be:
    1. Passed through to customers?
    2. Configured as flat or variable (e.g. by country or bank)?
  4. Where is this configuration managed (Merchant Portal or somewhere else)?

Chanh Huynh - based on our discussion on how could this be managed efficiently.

Comments

7 comments

Date Votes
  • Seth Halvaksz

    Ryan Ungerboeck 

  • Ryan Ungerboeck

    I'm not sure I understand how they process an international bank transfer.  Is this via Momentus Payments - as it was my understanding that we only supported regional bank payments (NZ / ACH / Canadian ACH / SEPA (EU))

    But…when processing different transaction types via momentus payments - we do allow each distinct transaction type (credit card, ACH, SEPA, etc.) to have its own fee configuration separate from the others.  And this fee configuration has no bearing on the back office - fees are calculated in the momentus payment checkout page and passed back to the calling application on successful payment.

  • Himanshu

    Thanks Ryan. They don't use MoPay currently.

    The bank transfer process is currently isolated process which sits outside Enterprise. Invoice has details of bank transfer, money is received in bank account and reconciled later on.

    Based on above, are you saying if they use MoPay we would be able to handle this? Let me know if you need any other details on this

  • Linda Moyer

    Himanshu Does this article help? https://documentus.zendesk.com/hc/en-us/articles/38700316385431-Configure-Payer-Fees 

  • Himanshu
    Edited

    Thank you Linda, that helps to some extent. However its unclear if we could setup different types of fees based on country or bank or if its one set fee that we charge for any international payments. Example: Fees amount may differ.

    Aside to that, should there be a merchant portal that can be accessed internally for any MoPay testing to validate these questions, as this may help further?

  • Linda Moyer

    Himanshu I am not sure about per country or per bank. Kristi Miles Have you configured or seen the payer fees page for MoPay? Do you know if there's an option to set different fees for a certain country or a particular bank?

  • Ryan Ungerboeck

    Payer fees are configurable by transaction type only.  Bank transactions are typically regionally specific (ACH in US, Canada ACH, SEPA in europe, BACS or BECS) so each one can have a separate fee - but it is unlikely anyone accepts more than one type of baking transaction type.

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