Administrative costs

Buckaroo Payment Plaza provides the option to use Credit Management for the collection of invoices. Invoices submitted to Buckaroo and incorporated into the Credit Management system are followed up through an automated dunning system. Depending on the settings, each reminder may result in additional administrative costs being added to the invoice. These costs comply with the WIK (Wet op de Incasso Kosten/Law on Collection Costs) and cover the efforts for sending extra reminders via mail, text message, or letter.

Settlement of Administrative Costs

The invoice states a total amount (inclusive of VAT), which Buckaroo is requested to collect. Administrative costs resulting from the collection are 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.

Scenario's

Merchant as Beneficiary of the Administrative Costs

The administrative costs are credited to the Merchant's account as a separate item on the invoice, mentioning the invoice number.
The transaction type for administrative costs is different from the selected payment method's type (Transaction number: Axxx).
These costs can be booked as revenue on the general ledger account ‘administrative costs’.
These costs are exempt from VAT and collected as such from the consumer.

Merchant Lets Third Parties Perform Debt Collection

Administrative costs are credited to the Merchant's account as a separate item by invoice, mentioning the invoice number.
The transaction type for administrative costs is different from the selected payment method's type (Transaction number: Axxx).
These costs are debited as part of the transaction costs on the same day.
For the Merchant, these costs can be booked as costs related to collecting an invoice.
The administrative costs paid by the consumer are exempt from VAT.
Buckaroo debits the collected administrative costs to the Merchant's account increased by 21% VAT, as they result from a service provided to the Merchant.
The difference between credited and debited administrative costs is the invoiced VAT (21%), which is mentioned on the Buckaroo invoice and is fully deductible.

Result on the Buckaroo Invoice

Merchant as Beneficiary of the Administrative Costs:

The Buckaroo invoice will not mention the collected administrative costs, as the Merchant does not pay Buckaroo any fees for this.

Merchant Using Third Parties for Debt Collection:

The Buckaroo invoice will mention a separate item of the collected administrative costs (within the Derdengelden account), increased by 21% VAT. The Merchant can increase the costs for payment transactions in their accounting and settle the VAT based on this invoice.