Why charge for Bank transfers?

Question

BT penalises everyone who doesnt pay by direct debit because they claim that it "costs" more to process the payments. What about online payments made by BACS transfer? Surely they should not be charging for those because they are electronic payments that go straight into BT's account!!
I cannot see what charges are involved there. We refuse to use Direct debit because too many problems arise where mistakes are made with people's bills....BT take the money and then the customer has the hassle of chasing up for refunds and dealing with all kinds of other infuriating issues. We prefer to keep control of our own money, thank you.
Why dont they lift the penalties on direct BACS transfer?

Answer 1

webduck wrote:
That's besides the point. The issue is about control over one's own bank account, NOT the fact that your "friendly bank" will refund the money in the case of a wrong bill. If we had control over our accounts, it wouldnt happen in the first place. And no-one has answered my question. Why does BT charge for an electronic payment method that puts the money directly into their account?
see here:
http://bt.custhelp.com/app/answers/detail/a_id/9855/~/how-can-i-pay-my-bill%3F
Although this page says,
You may be able to pay your bill through a simple bank transfer from your current account, over the phone or online. We don't charge for this facility, but you should check with your bank or building society concerning any charges or terms and conditions that might apply.
However BT refuted this when I asked the question on LiveChat. So come on.....is it free of charges or isnt it?
You missed the section just a little bit further down the page:
Information about the payment processing feeCustomers choosing not to pay by Whole Bill Direct Debit or Monthly Payment Plan will be charged a payment processing fee of £1.80 a month / £5.40 a quarter. The payment processing fee will be charged by BT Payment Services Ltd, a separate BT Group company. This fee is one of the lowest in the industry.
Most of the utility companies now offer discounts for paying by Direct Debit (or will only accept payment that way).  BT is just being a bit different by charging an extra fee for not using DD, rather than offering a discound for using it.
As I said before, companies really like being paid on-time, and in the olden days of paper bills and paying by cheque, many people paid late.  DD solves this problem from BT's point of view - and they are the ones who set the charges.