Administrative costs

The Buckaroo Payment Plaza offers the option to use Credit Management for the collection of invoices. The invoices submitted to Buckaroo, which are incorporated in the Credit Management system, are followed up by means of an automated dunning system within the Buckaroo Payment Plaza. Depending on the settings, each reminder could lead to additional costs being added to the invoice. These additional costs are called ‘administrative costs’. When using Buckaroo Credit Management, it is important to know this can be set up in compliance with the WIK (Wet op de Incasso Kosten/Law on Collection Costs). The collected administrative costs are used to pay for the efforts made for sending extra reminders by mail, text message or letter.

Settlement of administrative costs

The invoice states a total amount (inclusive of VAT). This is the invoice amount that Buckaroo is requested to collect. The administrative costs resulting from the collection will be added as a separate transaction to the invoice. Consumers who pay with iDEAL will see the total sum of the invoices (if applicable, settled with a credit note) and the administrative costs displayed on the iDEAL screen. Invoice reminders for transfers also mention the total sum invoiced, including the administrative costs. Once the consumer has paid the total amount, this is written off against the unpaid invoice. There are two scenario’s:

Merchant as beneficiary of the administrative costs

The administrative costs are credited by invoice as a separate item to the Merchant’s account, mentioning the invoice number. The transaction type of the administrative costs differs from the type belonging to the selected payment method. The number of this transaction is: Axxx. All items wich are booked with the mention of this transaction type, can be booked as revenue on the general ledger account ‘administratieve costs’. These administrative costs are exempt from VAT and collected as such from the consumer.

Merchant lets third parties perform debt collection

The administrative costs are credited to the Merhant’s account as a separate item by invoice, mentioning the invoice number. The transaction type of the administrative costs differs from the type belonging to the selected payment method. The number of this transaction is: Axxx. All items booked with the mention of this transaction type will be debited as an integral part of the transaction costs on the same day. For the Merchant, these collected administrative costs can be booked as costs related to the collecting of an invoice. The administrative costs paid by the consumer are exempt from VAT. Buckaroo will debit the collected administrative costs to the Merchant’s account increased with 21% VAT, because the administrative costs resulted from a service provided to the Merchant. This is in accordance with regulations regarding Credit Management. The difference between credited and debited administrative costs is the invoiced VAT (21%). The VAT is also mentioned on the Buckaroo invoice and is completely deductible.

Result on the Buckaroo invoice

The following situations apply to the Buckaroo invoice, which the Merchant receives on a monthly basis:

1. Merchant as beneficiary of the administrative costs: the Buckaroo invoice will not mention the collected administrative costs. After all, the Merchant doesn’t have to pay Buckaroo any fees for this.
2. Merchant who lets third party perform debt collection: the Buckaroo invoice will mention a separate item of the (within the Derdengelden account) collected administative costs, increased with 21% VAT. Based on this invoice, the Merchant can increase the costs for payment transactions in his accounting and settle the VAT.