Financial experts on this board

[fosters headband]

I have a question for the knowledgeable finance people on this board.

This merchant credit card company “Streamline” who the Lapland New Forest Company said have seized all their money from their bank account, appears to be a worldwide collector for Visa and MasterCard.

Assuming they realised that a lot of people could claim the money back through their credit card company, did they seize this money to protect the companies/banks they work for. But if they have taken more than the credit cards have to pay out, how will they deal with all the money that Lapland New Forest collected by debit cards and cheque payments.

 

[Beach Hut]

I have a question for the knowledgeable finance people on this board.

This merchant credit card company “Streamline” who the Lapland New Forest Company said have seized all their money from their bank account, appears to be a worldwide collector for Visa and MasterCard.

Assuming they realised that a lot of people could claim the money back through their credit card company, did they seize this money to protect the companies/banks they work for. But if they have taken more than the credit cards have to pay out, how will they deal with all the money that Lapland New Forest collected by debit cards and cheque payments.

Interesting question, do they have a right to just seize a companies money ?

I have just started a claim for £58 on my HSBC card as I booked a ferry crossing on Speedferries for next April and they have gone out of business.

 

[fosters headband]

Interesting question, do they have a right to just seize a companies money ?

I have just started a claim for £58 on my HSBC card as I booked a ferry crossing on Speedferries for next April and they have gone out of business.

Victor Mears did claim this was an illegal move by this company.

 

[Bozza]

Streamline are only involved in card processing, so cheques would be unaffected.

I suspect Streamline have frozen/seized the funds from the merchant account of the trading entity, very possibly anticipating claims from cardholders.

 

[Bozza]

....and Streamline are part of RBS - they're not some noddy tin-pot outfit.

 

[Beach Hut]

Victor Mears did claim this was an illegal move by this company.

Part of RBS as well, don't we all own them now ?

Welcome to Streamline

 

[Freddie Goodwin.]

....and Streamline are part of RBS - they're not some noddy tin-pot outfit.

Is that a subtle use of sarcasm?

 

[fosters headband]

Streamline are only involved in card processing, so cheques would be unaffected.

I suspect Streamline have frozen/seized the funds from the merchant account of the trading entity, very possibly anticipating claims from cardholders.

So are you saying Bozza, they would have only taken the sum they know has passed through credit card companies to the Lapland business, leaving monies taken by other methods in their account?

 

[Nottseagull]

....and Streamline are part of RBS - they're not some noddy tin-pot outfit.

I thought that's just what RBS are.

 

[Bozza]

So are you saying Bozza, they would have only taken the sum they know has passed through credit card companies to the Lapland business, leaving monies taken by other methods in their account?

I'm taking an educated guess. But it would be all cards (ie debit and credit).

Streamline would not, I believe, have access to a general bank account holding cash and cheque receipts.

 

[Beach Hut]

So are you saying Bozza, they would have only taken the sum they know has passed through credit card companies to the Lapland business, leaving monies taken by other methods in their account?

I would have thought so, I don't think a bank has the right to seize an account unless instructed by law.

 

[maffew]

.......

 

[Beach Hut]

.......

I had better visit a doctor then..........

 

[Couldn't Be Hyypia]

I'dbe surprised if they had taken the money back from the clients bank - I can't see how they could do that. I imagine this use of the word "seized" is Mears' way of spinning the fact that Streamline probably froze his account with them and stopped passing on the funds that they were processing. In other words they would argue that they had concerns about the delivery of the items and the exposure of thei clients (the credit cards) and therefore they did not then pass on funds held on account to the Lapland outfit.

 

[fosters headband]

I'dbe surprised if they had taken the money back from the clients bank - I can't see how they could do that. I imagine this use of the word "seized" is Mears' way of spinning the fact that Streamline probably froze his account with them and stopped passing on the funds that they were processing. In other words they would argue that they had concerns about the delivery of the items and the exposure of thei clients (the credit cards) and therefore they did not then pass on funds held on account to the Lapland outfit.

This is an extract from Victor Mears statement on their web site.

""What I believe to be a wholly illegal action by the credit merchant company called "Streamline" of seizing /withdrawing all funds without notice from the Lapland New Forest Ltd bank account leaving us completely unable to trade.""

 

[The Large One]

I'dbe surprised if they had taken the money back from the clients bank - I can't see how they could do that. I imagine this use of the word "seized" is Mears' way of spinning the fact that Streamline probably froze his account with them and stopped passing on the funds that they were processing. In other words they would argue that they had concerns about the delivery of the items and the exposure of thei clients (the credit cards) and therefore they did not then pass on funds held on account to the Lapland outfit.

Agreed.

When you pay for anything by credit or debit card, you pay (in this instance) Streamline, who pay into the trader's account the value of the transaction minus their commission (about 78p for debit cards, about 1.5% for credit cards and about 4% for AmEx).

How they have access to take funds out of someone's account is beyond me.

 

[Adam Virgo's Shirt]

I think the price per item is determind by the amount of risk the card processing company believes themselves to be under. Also the amount of time it takes Streamline to pay the funds over varies by sector, ie risk

I'm with Bozza, I reckon Streamline have witheld the amounts due for debit/credit card transactions rather than withdrawing funds from their account per se.

However, I guess it is possible they have transferred money from the current account back to Streamline if the co bank with RBS? Like if you have a current and a deposit account with the same bank, they can move available funds from the deposit account to cover the unauthorised oversraft on the current account I suppose?

 

[Couldn't Be Hyypia]

This is an extract from Victor Mears statement on their web site.

""What I believe to be a wholly illegal action by the credit merchant company called "Streamline" of seizing /withdrawing all funds without notice from the Lapland New Forest Ltd bank account leaving us completely unable to trade.""

I know thats what he said. He said lots of things that turned out to be slight misrepresentations of the reality didn't he.

Just out of interest - what's your interest in this Fosters Headband?

 

[Icy Gull]

Suppliers of PDQ machines have the right to reverse any funds taken on credit cards in the event that customers claim they have not received what they paid for. Normally this is done after the customer complains but it seems that the company who supplied the PDQ machine (streamline?) may have moved whilst the Lapland company still have funds in the account as it would not be possible for them to reverse PDQ transactions if the funds were not there?

They can do this because when signing up for a PDQ machine the customer has to sign paperwork giving the PDQ company access to your account to pay in or take out funds.

I think they would be within the terms of their conditions reversing funds paid if they were confident that customers were not going to get what they thought they'd paid for...

 

[Cadiz Seagull]

I have just started a claim for £58 on my HSBC card as I booked a ferry crossing on Speedferries for next April and they have gone out of business.

I thought you were covered by credit card (and some debit card) guarantees only for purchases of 100 quid or more?