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

mp44
I'm Here A Lot

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***

25 REPLIES 25

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

Gdkitty
Resident Expert
Resident Expert

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.



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

OLDYELLR
I'm a Senior Advisor

@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.


Rogers PayGo. Location: S-W Ontario

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

mp44
I'm Here A Lot

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

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

mp44
I'm Here A Lot
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

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

OLDYELLR
I'm a Senior Advisor

@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.


Rogers PayGo. Location: S-W Ontario

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

mp44
I'm Here A Lot

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

 

 

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

Gdkitty
Resident Expert
Resident Expert

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)



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

RogersDarrell
Community Manager (Retired)
Community Manager (Retired)

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

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

jays77
I'm a Trusted Contributor
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.

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

christophermkim
I Plan to Stick Around

This is an interesting issue... I have my Rogers set to pre-authorized payments via credit card, and it charges on my due date, not before.  Perhaps Rogers thinks inherently cc is "safer" in terms of likelihood of getting rejected (ie. "NSF" in bank accounts)?

 

While people should be able to choose how they pay their bills, not all service providers allow you to make pre-authorized payments via credit card like Rogers does (without any additional service charge). Personal finance issues aside (that may have people prefer not to use their credit cards), assuming no additional costs, I will ALWAYS use a credit card over direct pull from a bank account. It is much safer, better consumer protections, and if there are any disputes, you can always dispute the charge with your cc company (and while it's being resolved, you keep your money). With direct bank account pulls, could be many weeks before it's resolved and in that time, you don't have your cash. 

 

 

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

You do realize that there is a charge to the payee for credit card transactions, so Rogers does take a slight hit. However, I suppose the reliability outweighs that. In the example by @RogersDarrell above, he cited the cc  payment being declined. This, I guess, could happen if the card had expired and the customer had not updated it on Rogers. But, yes, usually when I make web payments, I too prefer using the cc, such and with PayPal, where it defaults to instant bank withdrawal and I have to change to cc each time. Just an extra layer of protection in case of a dispute.


Rogers PayGo. Location: S-W Ontario

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

christophermkim
I Plan to Stick Around

Yep, which is why it's not that common to see service providers allow pre-authorized cc without any additional charges to the customer. In those situations, all the more I'll 100% pay via cc (not to mention the whole cc points benefit).

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

Hello @RogersDarrell

 

If a credit card payment or bank debit does not go through when it's due, customers should be charge an NSF fee and interest. That is normal business practice and it is in your Terms and Conditions. In fact, Rogers should remove a customer from pre-authorized payment when too many NSF occurs.

 

When I sign up for a service and chose a payment method, it is expected of me that the payment will be made by the due date. And if I don't pay by the agreed date, then I understand that there will be consequences - admin fees, interest fees and service disconnection if arrears are not paid. And even my own bank fees. I believe that you would refer to this as Rogers collection process for unpaid accounts.

 

I'm sorry for the customers that do not have the funds in their bank account or their credit card has no more room for a charge, but there are other ways to deal with these issues as I mentioned above.

This is why I am not buying in to your 3 attempts by due date explanation. Because of your process, I have to be 13 days ahead of the due date as you clearly stated.

 

I maintain that this practice is UNFAIR for customers with good payment history and want to use pre-authorized payments either credit card or bank debit.

 

Too bad because pre-authorized payment is the least costly type of payment to process for Rogers, but with these rules you are not encouraging people to sign up for pre-authorize payment.  Maybe I should go back to receiving paper bills by post mail and send you a cheque every month.

 

mp44

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

mp44
I'm Here A Lot

Believe me, the reoccurring monthly payments outweighs the discount charge, otherwise it would not be a payment option offered by Rogers. The payment processing cost is very low compared to other forms of payments. I mean yourself being on pre-authorized bank debit is even better for Rogers.

 

But my point is that any payment regardless of how it's done, should go through on the first time. We are all responsible customers and we need to update the service providers when we change bank account or credit card. If not , then we should be charge an admin. or interest fee.

 

My whole point is that the payment is taken 13 days ahead of the due date because we chose to use pre-authorized payments.

 

mp44

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

The real issue here is the huge interest they are making -and you are losing- off of your money.

The solution is to setup auto payments at your bank rather than use r(they don't deserve capitalization)ogers'  auto-payment system.  They ought to give you a discount for your opportunity cost or their investment gain, or be forced to hold the money in escrow sans gains.

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

Conditions
I'm Here A Lot

Yes, I have this same issue and cannot get any resolution from Rogers.

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

Nehasharma
I've Been Around

Yes, it sucks and they are not even allowing to change the payment of method from pre authorised to manual.

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

I just noticed im affected by this too. My last bill came out on DEC 8, and they took the money out of my account DEC 9.  This does not seem normal? I barely have time to view/print/save the PDF file some times cus of my busy lifestyle and they take the money the next day?  wow hold your horses cowboy. whats up with that?



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

OLDYELLR
I'm a Senior Advisor

My cable billing date is the 15th of the month. It said the amount would be withdrawn on or after Jan 01,
2020 and I see it was withdrawn on Jan 02.


Rogers PayGo. Location: S-W Ontario

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

57
Resident Expert
Resident Expert

My bill date is the last of the month and that amount is charged to my Rogers MasterCard on the 14th of the next month.  I haven't had any issues with Auto-WD since introduced at least 10 years ago.  Since it's charged to my Rogers MC, I get a 2% rebate, plus I get almost two months to pay since my MC due date is the 27th of the month. 

 

For example:

 

Cable Bill date September 30

Charged to Rogers MC: October 14

Rogers MC statement date: November 6

Rogers MC due date: November 27, almost 2 months after Cable bill statement date.

 

Make sure that your bill date hasn't been changed for some reason.  I can certainly sympathize if someone gets billed "early", but there are ways to ensure you're not.



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