Pre-authorized payments taken before the due date is unjustified and not standard business

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I'm Here A Lot
Posts: 6

Pre-authorized payments taken before the due date is unjustified and not standard business

If you enroll on pre-authorized payment, your payments are taken before your bill is due. This is not standard business and really penalize customers that provides Rogers with access to their bank account or credit card. I would think that these customers are posing a lesser risk profile than other customers from a collections perspective. I have pre-authorize payments with my electric and gas providers and they only take the payments on the due date of my bills not a day before. In Rogers case, you take the payments 10 to 15 days before the actual due dates. This is unjustified and unfair business practice.

 

The reasoning I was provided by agents is that if the payment is NSF Rogers will try again to process another pre-authorize payments before the due date. This, in my opinion, is not a logical explanation. Whatever my payment method is, if the payment does not go through or payment is simply not made at the due date, than the account is charged interest and the collection process kicks in. Pre-authorize payment should not be leverage as a collection process and risk mitigation strategy as it is currently being used. This is simply not fair to good paying customers that want to ensure Rogers get their money when it is due and the account does not go in arrears.

 

This seriously needs to be reconsidered by the policy and process makers for the sake of well intended customers and not to be challenged by regulators.

 

I will be happy to provide my personal contact information if you contact me back.

 

Any other customers agree with me? Please reply back and share.

 

MP44    

 

 

 

***Edited Lables***

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Resident Expert
Resident Expert
Posts: 14,233

Re: Pre-authorized payments taken before the due date is unjustified and not standard business

Tagging @CommunityHelps so hopefully they can get in touch with you.

This is one reason i dont trust pre-authorized payments as a whole..  I dont like someone else being in control of what i am paying them.
I completely understand the convienience...
But if its the case of lack of funds, i would rather pay the bill 2 days late, and maybe get the companies $4 late fee there, than any NSF type fees from the bank, etc.

 

As well, it will then often give time to CONTEST anything wrong, between the time of the date received of the bill and the due date.  Varies by company, but often can be applied to the current ballance, then just pay less.



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I'm a Senior Advisor
Posts: 3,651

Re: Pre-authorized payments taken before the due date is unjustified and not standard business

@mp44 I don't see that. My cable bill is paid by pre-authorized chequing. The billing date is the 15th of each month and the due date is the 1st of the following month. It always comes out of my bank account on the 1st, sometimes a day or two later, never before. But I always maintain a sufficient balance for any conceivable payments and also have overdraft protection. I don't know what Rogers policy on this is, but maybe if there has been a history of NSF, they like to jump in early to get at the head of the line.


LG-E410B PayGo. Location: S-W Ontario
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I'm Here A Lot
Posts: 6

Re: Pre-authorized payments taken before the due date is unjustified and not standard business

First, let me very clear that there has never been an NSF or payment problems. The reason I am raising this is a matter of principle and good business practice for companies that bill monthly for their services.

 

If you were not enroled in a pre-authorize payment, your payment would only be required 27 to 28 days from your bill date. In other words, you would get to keep the money in your bank account for an extra 12 days from your current 15 days. The service companies have to do this so that they allocate sometime for you to receive your bill, check it and send in your payment before they can start charging for interest. Ever heard the term NET 30 days? Regulatory bodies prescribe these terms to protect consumers.

 

In my case, I am always billed on the 6th and before enroling into the pre-authorize payment my bills were always due anywhere from the 2nd to the 6th of the next month. But now, just by enroling in the pre-authorize payment method, they take my payment on the 20th. That't 12 to 13 days earlier. This is discriminatory in my opinion, as they treat me differently than other customers - even if my bills are always paid!

 

Hope you get my point.

 

mp44

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I'm Here A Lot
Posts: 6

Re: Pre-authorized payments taken before the due date is unjustified and not standard business

Whatever works for you, great.

I still feel in control with pre-authorize payments though because I can cancel the payment ahead of the date. I never really had any bad experience. But I understand and respect your opinion. Thanks.
mp44
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I'm a Senior Advisor
Posts: 3,651

Re: Pre-authorized payments taken before the due date is unjustified and not standard business


@mp44 wrote:

First, let me very clear that there has never been an NSF or payment problems. The reason I am raising this is a matter of principle and good business practice for companies that bill monthly for their services.

 

If you were not enroled in a pre-authorize payment, your payment would only be required 27 to 28 days from your bill date. In other words, you would get to keep the money in your bank account for an extra 12 days from your current 15 days. The service companies have to do this so that they allocate sometime for you to receive your bill, check it and send in your payment before they can start charging for interest. Ever heard the term NET 30 days? Regulatory bodies prescribe these terms to protect consumers.

 

In my case, I am always billed on the 6th and before enroling into the pre-authorize payment my bills were always due anywhere from the 2nd to the 6th of the next month. But now, just by enroling in the pre-authorize payment method, they take my payment on the 20th. That't 12 to 13 days earlier. This is discriminatory in my opinion, as they treat me differently than other customers - even if my bills are always paid!

 

Hope you get my point.

 

mp44


I have had "pre-authorized chequing" to pay my cable bill since I've been with Rogers. That's how it's worded on my bills & payments page. In fact, I probably sent them a voided cheque to set it up in the beginning. So I don't know if my billing and due dates would be different if instead I was paying each month through bank transfer instead. To stop payment I would have to put a request in to the bank, I think.  But the pushing forward of the due date when switching to pre-authorized is curious and does not seem legal to me. When you add up thousands of payments from thousands of customers all coming in 2 weeks earlier, that amounts to a hefty chunk of change for Rogers. Maybe someone from @CommunityHelps can jump in here and explain how this is even legal.


LG-E410B PayGo. Location: S-W Ontario
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I'm Here A Lot
Posts: 6

Re: Pre-authorized payments taken before the due date is unjustified and not standard business

In My Rogers self-serve portal, there are 3 payment methods: Invoice, Pre-authorized by credit card and Pre-authorized Debit .

 

The Invoice method is by making a payment (cheque, on-line etc.). This is the one that has a longer due date.

 

Pre-authorized by credit card are recurring payments using the credit card.

 

Pre-authorized Debit are recurring payments through a chequing account from a Canadian bank. This is the one you have.

 

Interestingly, you can set up the pre-authorized methods yourself by providing either your card number or your bank/transit/account numbers. But when it comes to changing back to the invoice method, you cannot complete the transaction yourself, they want you to contact them to make the change. Obviously, more effort is required if you want to stop pre-authorized payments and get  back on the Invoice payment method.

 

mp44

 

 

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Resident Expert
Resident Expert
Posts: 14,233

Re: Pre-authorized payments taken before the due date is unjustified and not standard business

I would give them a shout anyways..
Its possible that the date may be able to be changed. (just not from the user portal end of it, only from the back end)



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Community Manager
Community Manager
Posts: 3,385

Re: Pre-authorized payments taken before the due date is unjustified and not standard business

Hello @mp44

 

With preauthorized payments, payments are withdrawn (as detailed on the invoice) 13 days ahead of the due date to prevent NSF fees and/or any other penalty fees applied by your financial institution. This equals 3 attempts by the due date.

 

For instance, personally my bill cycle date is the 8th to the 7th of each month. My bill is generated and received by the 11th/12th and charged to my credit card on the 21st of the month. Despite my due date being the 3rd/4th of the following month (days in month dependant).

 

So hypothetical scenario, I receive my invoice on October 11th.

First attempt to charge my credit card is on October 21st - Declined

Second attempt to charge my credit card is 7 days later on October 28th - Declined

Third and final attempt to charge my credit card is 7 days later on October 4th of the next month. - Approved

 

3 Attempts. All to make sure your invoice is paid in full by the due date.

 

 

Hope this helps!

 

RogersDarrell

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I'm a Trusted Contributor
Posts: 682

Re: Pre-authorized payments taken before the due date is unjustified and not standard business

Another way of looking at it is that the bill is due when issued but you have "X" number of days to pay before it is considered overdue or late. You can pay anytime during that time period.

I know this is how the one bill I used to have as pre-authorized worked.