Money transfers
From WengoWiki
When are my earnings transferred to my bank account ?
Wengo transfers your earnings to your bank account on the 14th and 28th day of each month. The money transferred is the one earned from your customers during the previous month, i.e 30 to 45 days before the transfer.
The sketch here below shows the transfers schedule :
For example, if you started providing services with Wengo on August 1st, the money earned between the 1st and the 14th of August is transferred to your bank account on September 14th.
How do I get my earnings ?
Your earnings are automatically transferred to your bank account matching the IBAN you entered and selected as default bank account?
You've got nothing to do. If you change your bank account, just enter your new IBAN in your service provider online selfcare and select it as default IBAN for the next transfers.
Why does Wengo keep 5% of my earnings during 120 days ?
If you had to create some e-commerce services on the Internet, you would have to negotiate a contract with a bank to make people pay for your service. Beyond the high fees billed by banks for each transaction, you would have to pay expensive fees for any charge back from your customers (around 10€ per charge back).
Any customer can actually dispute a payment made on the Internet and his bank, after an investigation (or not...) can request the money back from your bank. This is called a "charge back". A charge back can happen several months after the actual payment of the service (up to 6 months according to the rules applied by some banks).
In addition of charging you for those charge back, a bank would request you to make a deposit corresponding to a high percentage of your estimated turnover for several months. This deposit is requested for covering the charge backs and the associated fees in case you stop your business.
Wengo aims at symplifying all this for you. Moreover we can offer you competitive conditions that you could not get on your own.
With this in mind, we have set up the defferred payment, with a value date after 120 days. Rather than requesting a deposit from you, we put a part of your earning to deferred payment to cover the risk of charge back.
Statiscally speaking, by putting 5% of your earnings to defferred payment, Wengo globally covers the risk of charge back.
What happens in case of charge back from one of my customers ?
In case of a charge back, the bank of the holder of the credit card with which your service was paid demands the restitution of the money from the trustee Wengo bank account.
Our bank, where the trustee account is kept, must comply with this restitution request. The money is then transferred from the Wengo trustee account to the credit card holder's one.
This is what we quote as a cancellation in your account tracking.
For example :
- One of your "customers" disputes a payment of 10€, which made you earn 7€ on your Wengo account
- The credit card holder's bank take the 10€ back from the Wengo trustee account
- Wengo deduces 7€ from your next transfer
- Wengo cancels the billing of its fees of 3€ and give them back
- Wengo also pays for the charge back fees billed by the banks
A charge back cancels your earning and costs Wengol its fees and the banks fees. It is therefore highly important to work together in counteracting some abusing customers :
- In case of charge back don't forget that you can request us to modify the evaluation you gave to a customer
- On our side, we settled many indicators to detect abusing customers
Important !
A charge back does not mean for sure that the money is lost. We can dispute the charge back with the banks. Wengo is able to supply all needed information regarding a transaction and you will be able to supply any information you would consider as relevant.
What rate of the turnover turns out to be charged back ?
There is no rule. It can be less than 0,01% or some %.
In average, if you pay attention to the rating of the customers who call you and if your service matches its description, your charge back rate should be around 0,3% to 0,5% of your turnover.
How can I dispute a charge back ?
First, we advise you to try to solve the dispute with your customer, using the webmail from your online selfcare.
If this does not help, you can request us to dispute the charge back with the banks. We will request you to supply us with any relevant information that could help us with the dispute. Please note that we cannot guarantee that we will get the money back, as it is the credit card holder's bank that will take the final decision regarding the dispute.
Where are my deferred payments put ?
All you earnings are put on the Wengo trustee account.
Why does Wengo transfer my earnings 30 to 45 days after the transactions ?
First, we aimed at setting up a transfer schedule that would reinsure you about the availability of your earnings.
We chose to make the transfers 30 to 45 days after the transactions to go past the highest charge back risk. It is actually during the first month after the transaction that charge back most likely happen. In this case, we simply do not transfer to you the disputed amounts.
