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Post by savingstream on Feb 4, 2014 10:56:27 GMT
As i'm sure many of you are aware Saving Stream currently offers 2 methods of depositing funds. BACS transfer and GoCardless, neither of which we charge fees to accept. GoCardless up until this point did charge us 1% of all deposits (capped at £2) per transaction as a fee. We were happy to absorb these fees on behalf of our investors as a cost of business in return for offering a convenient deposit option. GoCardless has now informed us that it wishes to change our fee structure to 0.5% per transaction with no upper cap. This significantly increases the cost of accepting GoCardless (a £10,000 deposit that did cost £2 now costs £50). Our options as we see it moving forward are as follows:
1) Remove GoCardless and rely solely on BACS transfer.
2) Pass the GoCardless fee to the investor so a £1,000 investment would only credit your account £995. (I'm guessing this will not be popular).
3) Absorb the cost of this increased fee as a cost of business (theoretical, but not practical for our business)
4) Replace GoCardless with the ability to instantly deposit funds via debit card (not credit card).
As always we welcome our Investors views on this matter and thanks in advance for any feedback.
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Post by pepperpot on Feb 4, 2014 13:02:02 GMT
I think any way of quick and cheap transfers will be acceptable, as loans don't appear to be hanging around too long these days, so option 4 sounds good to me.
Debit card 'in' and FPS 'out' would still put you as the slickest P2P for money transfers.
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markr
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Post by markr on Feb 4, 2014 13:15:59 GMT
Option 4 would get my vote too as long as it is free, or if there's a fee it is nominal (and a free but slower option like BACS remains).
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alison
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Post by alison on Feb 4, 2014 13:17:46 GMT
As i'm sure many of you are aware Saving Stream currently offers 2 methods of depositing funds. BACS transfer and GoCardless, neither of which we charge fees to accept. GoCardless up until this point did charge us 1% of all deposits (capped at £2) per transaction as a fee. We were happy to absorb these fees on behalf of our investors as a cost of business in return for offering a convenient deposit option. GoCardless has now informed us that it wishes to change our fee structure to 0.5% per transaction with no upper cap. This significantly increases the cost of accepting GoCardless (a £10,000 deposit that did cost £2 now costs £50). Our options as we see it moving forward are as follows: 1) Remove GoCardless and rely solely on BACS transfer. 2) Pass the GoCardless fee to the investor so a £1,000 investment would only credit your account £995. (I'm guessing this will not be popular). 3) Absorb the cost of this increased fee as a cost of business (theoretical, but not practical for our business) 4) Replace GoCardless with the ability to instantly deposit funds via debit card (not credit card). As always we welcome our Investors views on this matter and thanks in advance for any feedback. Option 4 for me please.
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ramblin rose
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Post by ramblin rose on Feb 4, 2014 17:00:15 GMT
I'm in agreement with what's been said above. To be honest, my first few bank transfers went by FP and were in my account within minutes anyway, so that would probably be what I'd use provided it was still as fast, but the option for truly instant funding is always desirable. I've been using GoCardless recently which has worked well because you can arrange your real money in slow time then, but I understand the desire to reduce costs.
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Post by elljay on Feb 4, 2014 19:13:38 GMT
Another vote for option 4.
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debeast
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Post by debeast on Feb 4, 2014 20:17:50 GMT
Option 3 you are pretty much up in terms of money coming in
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mikes1531
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Post by mikes1531 on Feb 6, 2014 2:18:58 GMT
I'd be happy with Option 4 as long as it can be done online as opposed to requiring a phone call to SS during office hours. If that's the case, then it would act exactly the way GoCardless did.
Considering that Lendy are charging borrowers 4% per month, I be surprised that a 0.5% one-time fee for GoCardless transactions isn't an easily absorbable cost, so Option 3 looks like it ought to be viable.
If you include Faster Payments in your 'BACS' option then that would be acceptable as long as the money would find its way into my account promptly, day or night.
The issue really is timing. The last loan to appear was a relatively large one -- £50k -- and yet it was taken up very quickly. I'm not about to pre-fund my account in the hopes that one of the 'pipeline' loans will be going live soon, so I need to be able put funds into my account quickly whenever investing opportunities appear so that I can partake before they disappear.
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oldgrumpy
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Post by oldgrumpy on Mar 6, 2014 18:19:30 GMT
GoCardless still on offer today. Any news about the change of facilities?
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ramblin rose
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Post by ramblin rose on Mar 6, 2014 18:52:11 GMT
GoCardless still on offer today. Any news about the change of facilities? I was keeping quiet about that in the hope it might all go away. I do like the GoCardless method.
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Post by savingstream on Mar 7, 2014 7:39:45 GMT
We are in the process of finding a suitable replacement (eg deposit via debit card) however until this alternative deposit method is in place we will continue to offer GoCardless.
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Bagman
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Post by Bagman on Mar 8, 2014 2:07:36 GMT
Another vote for go cardless or something else that gives an instant credit , as the loans often fill up a bit too fast to be funding with a bacs transfar
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Post by westcountryfunder on Mar 8, 2014 16:41:00 GMT
Another vote for go cardless or something else that gives an instant credit , as the loans often fill up a bit too fast to be funding with a bacs transfar Agreed. I prefer GoCardless to debit cards, but not too fussed either way. What matters is that it is instant! My only minor gripe is that GoCardless DDs on my bank account don't distinguish between AC and SS.
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mikes1531
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Post by mikes1531 on Mar 8, 2014 23:46:30 GMT
My only minor gripe is that GoCardless DDs on my bank account don't distinguish between AC and SS. This may be an issue with your bank rather than with GoCardless. The debit entries in my account (with Halifax) look like... GOCARDLESS LTD SAVINGSTREAM-XXXXX or GOCARDLESS LTD ASSETZCAPITA-XXXXX ... where the XXXXX is a code of some sort. I'd have said that it relates to either my specific account or AC's/SS's specific account rather than being a transaction ID, because the code is the same for all of the AC entries, but the SS entries are roughly equally divided between two different codes and that's a bit of a puzzle.
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Post by westcountryfunder on Mar 9, 2014 9:33:01 GMT
My only minor gripe is that GoCardless DDs on my bank account don't distinguish between AC and SS. This may be an issue with your bank rather than with GoCardless. The debit entries in my account (with Halifax) look like... GOCARDLESS LTD SAVINGSTREAM-XXXXX or GOCARDLESS LTD ASSETZCAPITA-XXXXX ... where the XXXXX is a code of some sort. I'd have said that it relates to either my specific account or AC's/SS's specific account rather than being a transaction ID, because the code is the same for all of the AC entries, but the SS entries are roughly equally divided between two different codes and that's a bit of a puzzle. Interesting. But as I said I'm really not that fussed - it's a minor inconvenience. What I really do like is that the GoCardless DDs take at leat two and usually three working days to hit my account, unlike debit cards - the next working day. Weekends complicate it a bit in both cases, as is to be expected.
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