BUSINESS BANKING. Club, Charity or Society. Need to know

Transcription

1 BUSINESS BANKING Club, Charity or Society Need to know

2 Contents Section 1 What s on offer for your club, charity or society? 1 Which account? 2 Moving your account to Bank of Scotland 3 The products and services we offer you 4 Section 2 Borrowing for your club, charity or society 6 Financial assessment 8 Coping with financial difficulties 9 Section 3 Our Codes of Responsibility 11 Section 4 Making the most of your account 12 Joint and several liability 13 Protecting your account 15 Making and receiving payments 17 Section 5 Switching: Frequently Asked Questions 19 Current Account Switch Guarantee 21 Your Current Account Switch Agreement 22 How to move to another bank 25 If you have any problems 26 Useful contacts 27

3 Our service promise If you experience a problem, we will always try to resolve it as quickly as possible. Please bring it to the attention of any member of staff. Our complaints procedures are published at bankofscotland.co.uk/business

4 Section 1 What s on offer for your club, charity or society? When you represent a non-profit organisation, you want to spend time working for your organisation rather than worrying about your banking arrangements. And let s face it, when you re ringing the bank you want to get through to someone who can help you. Your business management team When you call us you want to get through to someone who can help you first time. Our advisers are trained to deal with your account queries or requests. They can help you with: A Account balances and details of recent transactions A Transferring money between your organisation s Bank of Scotland accounts A Cancelling and amending standing orders A Cancelling Direct Debits A Statement requests A Ordering cheque books and paying in books. The business management team will also be able to support you with more complex queries, such as: A Arranging financial assistance A Savings A Accessing our products and services A Changing signatories on your account A Insurance cover. Contact us: Call am-8pm Monday to Friday (excluding UK public holidays) and 9am 2pm Saturday. If you re calling from outside of the UK, please call

5 Which account? Our accounts are split into two categories: A Accounts with an annual turnover less than 50,000 A Accounts with an annual turnover greater than 50,000. Annual turnover of less than 50,000 Bank of Scotland Treasurers' Account this is the bank account that is tailor-made for small, non-profit making organisations with annual turnovers below 50,000. Whether you re raising funds for a charity, responsible for church finances, or in charge of club or society subscriptions, this is the account for you. Our Treasurers' Account won t charge you for day-to-day business banking 1. All you need to do is make sure that you keep your account within the agreed limits. If you want to use other services such as Bacs and originating Direct Debit you will be charged to use these. Full details are in the business banking Charges for other services leaflet at the back of this brochure. There s no minimum amount needed to open the Treasurer s Account. We don t pay credit interest on our Treasurers account. Larger organisations with an annual turnover of more than 50,000 If your organisation has an annual turnover of 50,000 or more, you will qualify for our Business Current Account. There is a monthly fee and charges for cash, cheques and other services. However, all electronic payments 2 such as debit card, standing orders and Faster Payments are free and we have plenty of ideas on how to help you keep charges as low as possible. We don't pay credit interest on our Business Current Account. For more information on all our charges please call us or ask in branch for a copy of our business banking Your charges explained brochure. Identification we need from you To protect all our customers, and to prevent money laundering we must request proof of identity and address for certain parties before you open a new business account. This is required by law. If you make any changes to an existing account, we will need to identify new signatories and all Key Account Parties. We may also carry out a search with fraud prevention and credit reference agencies. These procedures ensure we re not only complying with the law, but we re doing our best to protect all of our customers. Please help us prevent financial crime. For full details of our identification procedure, please see our 'Identification we need from you' leaflet. Just ask in branch for a copy. 1. Free business banking includes cheques, Standing Orders, cash, Direct Debits, deposits and withdrawals. All we ask is that you operate your account in credit or within agreed limits. 2. Free electronic payments include Direct Debits, Standing Orders, debit card transactions, Lloyds Bank/other bank ATM withdrawals, Internet/PhoneBank debits/credits, faster payment debits/credits, Internet bulk payments and automated credits. ĄWe have plenty of ideas on how to help you keep charges as low as possible. 2

6 Moving your account to Bank of Scotland Change your bank without the hassle If you d like to transfer your organisation s account to us, we ll do the legwork for you, making it as quick and easy as possible. Naturally, one or two formalities are unavoidable, like proving who you are and where you live. But that aside, we ll manage the move on your behalf. Once you have an open and active current account with us, depending on your eligibility, there are two services available. Current Account Switch Service We take care of everything and guarantee to complete your switch in seven working days, finishing on the day you choose. For more information, see page 20. A All your incoming and outgoing payments will be transferred and guaranteed A We ll arrange for your old bank to close your previous account and transfer any credit balance to your new Bank of Scotland account Transfer of Payment Arrangements Service You tell us which parts of the switch you want us to handle. A We ll automatically transfer any payments you specify A If you require us to transfer any outstanding credit and/or debit balance from your old account, we will arrange for your old bank to close your previous account if you ask us to. ĩ How to apply A Visit your local branch A bankofscotland.co.uk/business A Call Lines are open 9am 5pm Monday, Tuesday, Thursday, Friday, 9.30am 5pm Wednesday (excluding UK Bank Holidays). A Any payments to or from your old account will be automatically redirected or forwarded for at least three years A If anything goes wrong with the switch, as soon as we are told we ll refund any interest or charges you have incurred on your old or new account as a result of a delay caused by us. This does not cover charges or interest resulting from required tasks you or your old bank do not complete. 3

7 The products and services we offer you p Savings é Business Mobile Banking* There are savings accounts to help you make the most of those occasions when you find you have more in your organisation s account than you immediately need to use: Instant Access Account Your money, once cleared, will be instantly available should you suddenly need to use it. But whilst it s in the savings account, it will be earning interest. There are no withdrawal charges and it has the added benefit that you can open and manage it online. Financial markets and treasury Other term deposits are available to some clubs, charities and societies if you d like more information please contact our business management team. ë Internet banking Business Internet Banking Business Internet Banking is our internet banking service, and is a quick and convenient way to manage your organisation s accounts online. With Business Internet Banking you can: A Check your balances A Transfer money between your Bank of Scotland accounts A Make payments to another person or company A Make online international payments in over 35 currencies A Set up new standing orders and easily manage your existing standing orders and Direct Debits. With Business Mobile Banking you can: A View transactions and balances on your eligible Bank of Scotland business accounts A Transfer funds between eligible Bank of Scotland accounts A Find your nearest branch or ATM. Ã Online Payment Control service Internet banking users can also choose to add the optional Online Payment Control service. This functionality helps businesses who want to delegate payment responsibility but still keep control of their finances. You can choose individual limits, allowing you to set a user s payment limit for each transaction. Your overall daily limit for your account will still apply. Alternatively, if your business or organisation requires other people to authorise all payments, the signatory may choose two or three people to authorise payments online. é Text alerts Free text alerts can be sent direct to your mobile phone every business day (Monday to Friday), or weekly. Detailing your account balance and up to the last six transactions, it is a handy way to keep a close eye on your balance. And you can cancel, pause and re-register for the service at any time. * We don t charge you for mobile banking but your mobile operator may charge you for certain services such as downloading or using the app, so please check with them. Our new app requires ios 7.0 or above, or Android 4.1 or above. Internet banking registration required. Services may be affected by phone signal and functionality. Use of mobile banking is subject to our business internet banking terms and conditions. 4

8 H Making and receiving payments t Other services depositpoint and Express Pay In Avoid queues and make payments into your account quickly and without fuss this is available in most branches. Immediate Deposit Machine You can use your Business Debit, Key Card or sort code and account number to make fast cash and cheque deposits in our Immediate Deposit Machines, which are available at larger Bank of Scotland branches. Business Cash Saver Instead of checking the details of an over-the-counter deposit while you wait, we check your deposit later but still credit your account the same day. Nightsafe For paying in money outside of banking hours. Your account is credited the next business day this is available in most branches. You can also set up to pay: A Direct Debits A Standing orders A Recurring transactions, these are also known as continuous payments. How to access our products and services For more information on accessing our products and services, please contact our business management team who will be happy to go through the various products with you. j Statements You ll get a regular account statement to help you manage your money more efficiently. It will be sent monthly, quarterly, annually (minimum period), or on request. We usually charge for duplicates or copies. Details of the charges for these services are covered in the leaflet inside the back pocket of this brochure. Å Balance availability You may only be able to withdraw part of your balance if there are payments that have not been debited from your account (for example, a card transaction) or cheques that have not yet cleared. (For further information, please see the section Making and receiving payments by cheque on page 18.) ê To find out more about internet and mobile banking or to register, go to bankofscotland.co.uk/business 5

9 Section 2 Borrowing for your club, charity or society A non-profit organisation may need an overdraft to stabilise its day-to-day cash flow or a loan to invest in equipment or property. Whatever the reason, you will need to go through certain preliminary processes. This section runs through the products and the key steps that you will need to take. Is my club, charity or society allowed to borrow? Charities and other organisations have to operate under strict rules which are laid down in their governing document. Before considering the possibility of a loan the trustees of the charity must check that their governing document gives them the power to borrow we will need to see this. It s also worth noting that your trustees should get together and have a meeting to discuss how you are going to deal with borrowing money, and you ll need to produce a set of minutes that capture the conversation. They should also clearly outline your resolution to borrow the money and should include: A Why the organisation needs money A Why it has decided to borrow money rather than look for funds in other ways A Why a particular form of borrowing and a particular lender have been chosen. We would recommend that you get quotes from several banks or other sources before going ahead with any borrowing. What are my personal responsibilities for the borrowing? It is in your own interest to find out the extent of your personal liability and to be comfortable with this. Small groups or clubs may not be incorporated and will not therefore have an identity separate from the club members, committee or trustees appointed in accordance with the relevant constitution and rules. Individuals who enter into commitments on behalf of their organisation may ultimately be personally liable for payments. Please read the section Joint and several liability that appears on page 14. How does my organisation borrow money? For those with Treasurer s Accounts, you must make sure you keep your account within the agreed limits. Other borrowing arrangements are not permitted with a Treasurers' Account. For those with an annual turnover of more than 50,000 you may need an overdraft to stabilise your day-to-day cash flow or a loan to invest in equipment or property. Whatever the reason, you will need to go through certain preliminary processes. This section runs through the products and the key steps that you will need to take. For more information speak to our business management team. Overdraft Your organisation can, by arrangement borrow any amount up to an agreed limit. And, you ll only pay interest on the money that you actually use. An arrangement fee will be payable which is dependent on the amount you borrow. Bank of England bank rate linked and fixed rate loans We have several types of loans available that give you more options. Our business management team will be happy to discuss these with you. Commercial mortgage Looking to buy, refurbish or invest in property? Then ask our business management team about a Bank of England base rate linked or fixed rate commercial mortgage for over 25,000. Usually, we lend up to 70% of the value of the property, but in some cases we re able to lend more. With the bank rate linked mortgage, you can apply for flexible capital repayment holidays of up to 12 months. We will require a first legal (or first standard security) charge over property as security. There is always a possibility that interest rates may go down leaving a fixed rate loan at a higher level compared to a variable rate loan. However, if interest rates rise, a fixed rate loan will remain at the same rate. 6

10 Hire purchase If you need to borrow over 7,500 to purchase new vehicles or equipment, you could look at hire purchase provided by Lloyds Bank plc. Loans are repaid over one to five years. Charges when you borrow An arrangement fee is payable depending on the amount you borrow. We will inform you of the appropriate charge before any facilities are agreed. For higher value loans we may also require security. The costs of taking any security will be discussed with you at the time of your application. If you need to borrow money for any purpose or period, please talk it over with us first to avoid extra charges. Once we ve agreed terms we ll write to you, letting you know the interest rate, when it s charged and what fees are payable. In the case of an agreed overdraft, the limit, review date and current interest rate will be shown on your statement. Ask our business management team for further details of the interest rates and fees that apply to our borrowing facilities. What sorts of questions will the bank ask? Banks, generally, have standard questions they will ask if you want to borrow money. The bank will want to know what you want the money for, what it s going to do for your organisation, how long you want to borrow it for and how you will repay it, for example. Our finance application checklist gives more details about the type of information we may ask you to provide to support your application. Please ask our business management team for a copy or visit bankofscotland.co.uk/business financeapplicationchecklist You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action. Do we need a business plan? It may not be necessary for charities or small organisations to present a business plan. However, a business plan can be a useful tool and may ultimately dictate whether you will be offered a loan, as well as what terms the bank is prepared to offer. As a general guide, your plan should include: A General information about your club or charity, its aims and objectives A The legal form of your organisation and proof that it has the power to borrow A Details of the organisation s assets and liabilities A Brief details of the people running the organisation A Details of the project and why you need a loan for it A A cash flow forecast for the next 12 months showing how you intend to repay the loan A A current balance sheet A Accounts for the past three years A Details of any previous borrowing. For more information Please call If you need to call us from abroad, you can also call us on , to speak to one of our advisers. ANY PROPERTY GIVEN AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBTS SECURED ON IT. All lending is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on you and your organisation. You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action. 7

11 Financial assessment Before we lend your organisation any money, or increase its overdraft borrowing limit we ll assess whether we feel you will be able to repay us. This may include us looking over the business plan and accounts, including cash flow, profitability and existing financial commitments and: A How your organisation s finances have been handled in the past A Information we get from credit reference agencies A Credit assessment techniques, such as credit scoring A Any security provided. If we can t help you, we will be happy to explain the reason why in writing, if you ask us to. If we ask you for security to support borrowing or other liabilities, we will tell you why we need this security and we will confirm what we need in writing. We will make sure that any documents are easy to understand by avoiding technical language whenever possible. We will make sure that you have the opportunity to discuss with us anything you re not sure about. If the guarantee or other security is provided by an individual rather than a company, we will also: A Recommend that the person providing the guarantee gets independent legal advice to make sure that they understand their commitment and the possible consequences of their decision (where appropriate, the documents we ask them to sign will contain this recommendation); A Tell them that by giving the guarantee or other security they may become liable instead of, or as well as, your organisation; and A Tell them what their liability will be. We will not take an unlimited guarantee from individuals other than to support your organisation s liabilities under a merchant agreement. We will only accept unlimited guarantees from companies. You should read the documents carefully and feel free to ask us questions and get independent advice. If you ask us, we will tell you under what circumstances we will agree to release the security. We may agree to accept security provided by another person to support your organisation s liabilities. If you want us to accept a guarantee or other security from another person for your liabilities, we may ask you for your permission to give confidential information about your organisation s finances to the person giving the guarantee or other security, or to their legal advisers. 8

12 Coping with financial difficulties We will consider cases of financial difficulty sympathetically and positively. You ll usually spot problems first and should let us know as soon as possible. If we become aware of problems, we ll let you know in writing. If speed seems to be important, we may try to contact you by phone, fax or . This list gives a few examples of what may concern us, particularly if you do not explain what is happening. A If you go overdrawn without our agreement A If you go over your agreed overdraft limit, especially more than once A If there are large increases or decreases in your organisation s turnover We ll do all that we can to help you overcome any difficulties. We ll develop a plan with you for dealing with your financial difficulties and we ll confirm in writing what we have agreed. We follow The Lending Code which includes details of how we can best work together to deal with problems of financial difficulty. A copy of A Guide to The Lending Code is enclosed. The Lending Code can be downloaded from the Lending Standards Board at or our website bankofscotland.co.uk/businesslendingsupport A If you are trading at a loss A If you suddenly lose a key customer or employee A If you sell a large part of your organisation s assets A If you use a facility for purposes other than those agreed with us A If you fail to make a loan repayment A If you do not keep to conditions set out in the loan agreement A If you do not supply agreed monitoring information on time A If another creditor brings a winding-up petition or other legal action against your organisation. 9

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14 Section 3 Our Codes of Responsibility We believe that we can make our greatest contribution to society by helping the families, businesses and communities that we serve to prosper, and by doing it in a responsible way. We want people to feel proud of their relationships with us whether they bank with us, work with us, or do business with us, in the UK or abroad. This is absolutely fundamental to our success and sustainability and our ability to make a positive difference to the communities where we operate. To help us achieve this we have developed a Code of Personal Responsibility and Code of Business Responsibility. Our Codes set out the way we aspire to do business. They empower all colleagues across the Group to do the right thing every day and, just as importantly, to challenge the wrong behaviours when we encounter them. The Codes are consistent with our values which are: A Putting customers first A Keeping it simple A Making a difference. The Code of Personal Responsibility sets out how every individual colleague in Lloyds Banking Group can and should act in their daily business with customers and colleagues, and is based on the behaviours that the vast majority of us display each day. Meanwhile the Code of Business Responsibility sets out how we as an organisation will act in the right way and prove that we are serious about our commitment to becoming the best bank for customers. The Code helps us to deliver against our five pillars of responsible business, which are: A We put customers at the heart of our business A We aim to be a great company to work for A We work responsibly with our external stakeholders A We invest in communities to help them prosper and grow A We work to continually reduce our environmental impact. For more information on our Codes of Responsibility, values and community support see lloydsbankinggroup.com/responsibility.asp 11

15 Section 4 Making the most of your account Charges and interest We charge for the services you use, like any other business. We ll tell you what we re charging for and how much. The business banking Your account charges explained brochure takes you through all our banking charges, in depth. It contains all the charges for our most frequently used UK mainland branch services, and full details of our charging cycle. It shows you how you could save money too. If you d like a copy of the business banking Your account charges explained brochure, please ask. For details of the charges we make to clubs, charities and societies for other services, for example Bacs payments, please refer to the business banking Charges for other services leaflet at the back of this brochure. The information is also on our website bankofscotland.co.uk/business We will be happy to talk you through the way we calculate interest and charges. If you think we ve got it wrong, we ll acknowledge your complaint within five days (we look at each case individually) and sort it out as soon as we possibly can. We ll tell you how we re handling the query and if necessary, explain our complaints procedure. We ll explain how we arrived at the figure, sharing our calculations with you and your advisers, on request. If asked, we ll provide all details of charges, interest or cleared balances to help you check things out and we ll also tell you if we intend to charge for this service. Then, if we agree we ve made a mistake we ll refund the money. If you use an agency to help you work out your charges, we may not pay their fee. You ll find our interest rates in your local branch and on our website: bankofscotland.co.uk/business ratesandcharges 12

16 Joint and several liability This section explains the potential liability of authorised signatories in the event of there being outstanding liability to the Bank. Other matters to do with your account authority are also addressed. Opening your Club, Charity or Society Account You will open your account with us in the name of the organisation instead of its officials or authorised signatories. Where the organisation isn t a separate legal entity we may be able to take appropriate actions against each and every one of the authorised signatories to the account. For example, if the organisation s account becomes overdrawn, the Bank may take action to recover the whole of any debt from each and/or every one of the authorised signatories to the account. You and the other members of your organisation will be asked to sign an account authority. This is your contract with us and contains your instruction on the way you want to run the account and your promise to pay any debts. Although the members of your organisation who you ask to become authorised signatories on the account will give a specimen signature, it s up to you whether you have one or more member(s) to sign each cheque (or other instruction). What joint and several liability means The concept of joint and several liability applies to the Club, Charity or Society Account. Joint and several liability arises when two or more people agree to pay a debt (or similar). This is a joint promise together to pay the debt. At the same time, each person makes a separate promise to pay the full amount of the debt on his or her own. That means that each authorised signatory (who these are depends on who is nominated in the account opening authority) is liable to pay the full amount of the debt. This means that you, personally, would be responsible for any overdraft even if the other authorised signatory signed all the cheques. If you have a one to sign or two to sign authority then this means that those authorised signatories could withdraw the whole balance on the account. Running your Club, Charity or Society Account All payment instructions are to be signed the way you ve agreed in your account authority and terms and conditions. Usually however, anyone can pay into your account. Statements will be sent to your organisation s correspondence address (as detailed on the account application form), marked for the attention of the organisation s contact name. You and the other members will need to check these statements for errors. Ask for additional copies if you need them although there will be an extra cost involved as detailed in the business banking Charges for other services leaflet, which is available inside the back pocket of this brochure. Changing the authority You may notify us of a change to the account authority by any two authorised signatories by completing our standard form to vary the instruction to operate our account. If the committee have a disagreement We d like to know of any disputes as soon as possible. If there is a dispute, we may require all authorised signatories to authorise transactions until all authorised signatories agree how the organisation s account is to be operated. If we make this change, we may have to ask you not to use your Business Debit Card, charge card or to use internet or telephone banking until things are sorted out. If the dispute becomes serious, we ll have to freeze the account until the dispute is resolved. Freezing the account means that none of you will be able to take any money out of the account on your own (or carry out any other transactions, either). This enables us to ensure that no transactions are carried out unless you all agree. As you know, if your organisation is not a separate legal entity, the authorised signatories will each be jointly and severally liable for any overdrawn balance when the account is frozen. You might be able to open new, separate accounts, but we may ask you to keep these accounts in credit at all times and to put forward proposals for repaying the debt. 13

17 If an authorised signatory leaves the organisation Please tell us immediately. If the organisation isn t a separate legal entity we may treat any continuing authorised signatories as having full power to carry on the organisation s business and to deal with its assets as if there had been no change in the organisation. This will apply unless we receive written notice to the contrary from any of the continuing authorised signatories. If the organisation isn t a separate legal entity and has an overdraft or any outstanding loans with us, each authorised signatory (including the authorised signatory who has left) remains separately responsible to us to repay all the debts. If an authorised signatory dies If the organisation isn t a separate legal entity we may treat any continuing authorised signatories as having full power to carry on the organisation s business and to deal with its assets as if there had been no change in the organisation. This applies unless we receive written notice to the contrary from any of the continuing authorised signatories or from the executors, legal personal representatives or trustees of any deceased authorised signatories. Closing the account If your account is in credit, you ll need to tell us where to send the money and how to deal with any regular payments in or out of the account. If your organisation isn t a separate legal entity, all authorised signatories will have to make proposals for repaying any debts. Normally, if it s our decision to close the account we will give you at least two months notice. Confidentiality We assume that all information about the organisation s account and the organisation in general can be discussed with any authorised signatory. You may want us to deal with one authorised signatory, solely. Personal accounts remain separate and confidential. Mortgages and guarantees If you take out a mortgage or sign a guarantee, the persons signing these documents may be jointly and severally liable in respect of any outstanding obligations. These are complex and legally binding documents and you should take legal advice before signing one. If the organisation is not a separate legal entity and has an overdraft or any outstanding loans with us, when an authorised signatory dies, the deceased authorised signatory s estate remains responsible for paying the debt and we may require payment from the deceased authorised signatory s assets. The organisation s account authority with us will not be affected by any change in the authorised signatories as a result of death, bankruptcy or retirement. If a new signatory joins If the organisation is not a separate legal entity, a new signatory might not want to become jointly and severally liable for any loans or overdrafts outstanding on the existing account. In that case, we can open a new account. But the old signatories will have to reach an agreement with us about paying the old debts. The organisation s account authority with us will not be affected by any change in the authorised signatories as a result of any new authorised signatory(s) joining the organisation. 14

18 Protecting your account Please let us know of any changes you make to your organisation s signatories (for example, your name, organisation s name, address, phone number or address) as soon as possible. Never give account or security details (such as your account number) to anyone, without checking who they are and why they need the information. Check your statements regularly. If you re suspicious of an entry, call us right away. If we have to investigate, you ll be asked to co-operate with ourselves and the police, if necessary. And to confirm or provide evidence that you hadn t authorised the transaction. Be careful when storing or getting rid of information about your accounts. People who commit fraud use many methods such as bin raiding to get this type of information. Shredding printed material is a simple way of protecting yourself. Make sure you keep your cheque book and cards separate. Cards and PINs (personal identification numbers) Your card will include a chip which holds your personal identification number (PIN). When you use your card, instead of signing a receipt, you will be asked to enter your four-digit PIN into a PIN pad at the till. The number you enter is matched with the one held on the chip in your card, and if the match is correct the transaction will be confirmed. Please note that if you do not know your PIN, you should not expect to be able to sign and your transaction may be declined. If you are unable to use a PIN because of a disability or a medical condition, please let us know. We will be happy to tell you about alternative options to ensure you can use your card in retail outlets. Memorise them as soon as you receive them and destroy the evidence. Don t let anyone use your card and keep it safe at all times. The same applies to card receipts that you have. We ll send you, and other authorised users a card only if you ask, or when it s time to replace your existing one. Never write down or record your PIN, password or other security information. When you change a card we ll send you a new PIN in a separate envelope. If you d like to change your new PIN you can do at a Bank of Scotland, Halifax or Lloyds Bank cash machine. Just enter your new PIN and follow the onscreen instructions. You can t change your PIN during the month before a renewal card is due. Choose your new PIN carefully. You can find out more information on chip and PIN at or If you suspect card fraud a useful guide on what you need to do can be found on the APACS website Cheques To help prevent fraud, add some relevant information alongside the name of the person you re making the cheque out to. Such as: A In the case of organisations like the HM Revenue & Customs, add the name of the account you want the cheque paid into and the reference number, for example, HM REVENUE & CUSTOMS, ACCOUNT J SMITH, Ref: XXXX A If you re paying the cheque into a bank or building society, add the name of the account holder, for example, XYX BANK, ACCOUNT J COLLINS. Then draw a line through unused spaces so no one can add names or numbers. Customers who do not have a chip and PIN card, or make a purchase from a retailer who has not installed a PIN pad, will have their transaction authorised by signing a receipt. Don t tell anyone, or write down your PIN, password or other security information. 15

19 Lost or stolen confidential information Your post is valuable information if it gets into the wrong hands. Contact us if you don t receive a bank statement, card statement or any other financial information that you re expecting. We need to know as soon as you think that: A Your cheque book or card has been lost or stolen or A Someone else knows your PIN, password or other security information. Call one of the numbers provided with your card or cheque book, or get in contact with our business management team through We ll take immediate steps to protect your account from unauthorised access. Be on your guard against hoax calls or callers. They could be criminals trying to get extra information about your account. For example, someone may pose as a police officer or a bank representative and ask for your PIN. Genuine callers would never ask for this kind of information. Account aggregation services Account aggregation lets you view some, or all, of the online accounts you hold with several different banking or finance providers. We don t offer this service ourselves so please be aware that if you do use an external account aggregation service, you may be liable for any fraud or mistakes that occur as a result. Liability for losses Generally, the following will apply: a) Unless we can show that you or a cardholder have acted fraudulently or have not taken all reasonable care in keeping a card or card details safe and in accordance with our security requirements you will not have to pay anything in respect of the use of a card or card details that: Are used before the card or card details are received; or Are lost or stolen, provided you tell us as soon as you become aware of such loss or theft. b) Unless we can show that you or a cardholder have acted fraudulently, or have not taken all reasonable care in keeping a card or card details safe and in accordance with our security requirements, you will not have to pay anything in respect of the unauthorised use of a card or the card details where the cardholder does not need to be present. c) Unless we can show that you or a cardholder have acted fraudulently or have not taken all reasonable care in keeping a card or the card details safe and in accordance with our security requirements, we will refund the amount of any unauthorised card transaction. We will also refund any interest charged in respect of that transaction together with any charges directly incurred on your account which would not otherwise have been incurred. d) If you or any cardholder have acted fraudulently in connection with the use of a card or the card details or have not taken all reasonable care in keeping a card or card details safe and in accordance with our security requirements, you will be responsible for all losses arising out of or in connection with unauthorised card transactions. 16

20 Making and receiving payments Payment cut off and transaction times For details of cut off and transaction times for payments please refer to our business banking Payment Transaction brochure. Cheques Most cheques written and received by you go through the clearing cycle, a system used by the main British banks to transfer money between accounts. The clearing cycle used by the main banks changed in November 2007 and is now often referred to as the process (or for deposit accounts) as it sets a maximum time limit of two, four or six business days for each stage of the process after paying in a cheque. This is how it works: If you pay a cheque in at a Bank of Scotland branch on a Monday morning; A Within two business days. You will start to earn interest on your cheque from Wednesday or if you have an overdraft, this can start to reduce the interest charged. A Within four business days. Your money will be available in your account from Friday although the cheque could still be returned unpaid. This means you ll be able to withdraw cash or make payments. Also, money will normally be available through the usual way at the ATM, on business internet banking and to use through your debit card. A After six business days. By the end of the sixth business day, in this case the following Tuesday, you can be certain that even if the cheque is later returned unpaid, the funds will not be debited from your account without your agreement unless you are a knowing party to fraud. A This does mean that a cheque can still be taken from your account for up to six days after you pay it in even if you have already spent the money. For our purposes, a business day lasts from 9am 5pm, Monday to Friday, excluding Bank Holidays. Cheques or cash paid in after 5pm (sometimes after 3.30pm) might not be processed until the next business day. If you have any further questions about the clearing cycle, please ask our business management team, or your local branch. More information on all of this and how it applies across the UK Banking Industry can be found at Making automated payments Faster Payments What is Faster Payments? Faster Payments is a payment service which allows most customers of UK banks to be able to make and receive sterling payments within the UK in a matter of hours, and often in minutes. Payments made through telephone banking and any business internet banking payments which are over the limit for same-day, will be processed overnight and will reach the recipient s bank the business day after the payment instruction was received by us. Details of same-day payment limits within internet banking will be available to you at the time you make the transaction. How do Faster Payments work? Most Faster Payments will be processed by your bank and accepted by the receiving bank almost immediately. You will need to check that the recipient s sort code accepts Faster Payments, as not all sort codes accept this type of payment. If the recipient s account sort code does not accept Faster Payments or your payment exceeds the Faster Payment Service s limit, your payment will be refused and you ll need to make alternative arrangements. Some utility bills and credit card companies may take a few days to credit the individual account, so it s worth checking with each company concerned how quickly they will process your payment once they receive it. How will I know if an account is set up for Faster Payments? The Payments Council has created a Sort Code Checker for the UK Payments website where you can go online to check that the sort code you are sending a payment to can receive Faster Payments, Bacs Credits and CHAPS Payments. To find out more or to check a sort code go to the payments section of our website at bankofscotland.co.uk/business 17

21 Taking money out Most cheques will clear according to the cheque clearing process detailed in the 'This is how it works' section on page 18. The total value of each month s charge card purchases, is taken from your current account by non-returnable Direct Debit. To find out more, please see the charge card terms and conditions. Over the counter Write CASH on the pay line of a cheque and hand it over the counter of any Bank of Scotland branch. If it s not your branch, you ll be asked for your card or another form of identification. There s a limit to how much you can take out in one day, but usually you can take out more money by agreeing it with us in advance. Stopping a cheque Now and then, you may need to ask us not to pay a cheque on your behalf. In that case, phone your branch and then confirm your request in writing. You ll need to add details of any replacement cheques that you ve written. This must be done before the cheque is presented for payment. To stop a cheque, we need to know: A The cheque number A The amount A The date it was issued A Who it was made payable to. Our business banking Charges for other services leaflet at the back of this brochure will tell you how much it costs to stop a cheque. Also, stopping a cheque doesn t cancel your legal obligation to pay for goods or services rendered. Returned cheques If you don t have enough money in your account to cover a cheque you ve written, the cheque may be returned unpaid. We ll write to you giving details of the returned cheque and our charges for dealing with the situation. We aim to notify you within two business days of the cheque being presented to us. Unpaid cheques As you know, we ll write and give you the details of any unpaid cheques, normally within two business days of it being brought to our attention. However, things like postal delays could lead to a cheque being returned unpaid after the normal four business day clearing cycle. So, don t assume that a cheque has been paid just because it s marked as a cleared item on your account. It could be crucial for you to know whether a cheque has been paid or not if it s payment for goods you re waiting to deliver, for instance. Your branch will tell you how to check this (there may be a charge). Out-of-date cheques In the past, banks generally treated cheques as out of date if they were written more than six months ago. Not because the cheque had become invalid, but just as a precaution in case it was lost or stolen. This practice is less common now and most banks will only return very high value cheques because they re considered out-of-date. However, you should be aware that it is still possible that we or another bank could return a cheque as out-of-date, so if you have one that s more than six months old you should ask the person you got it from to write a new one and destroy or return the old one. As a cheque that is more than six months old can be paid, you should never rely on us to return a cheque unpaid purely because it was written more than six months ago. If you don t want a particular cheque to be paid then it should be stopped. Changing your mind When you open a new account we will inform you of any right to cancel. If you do want to cancel, please write to us at Bank of Scotland, Business Banking Operations, Citymark, 150 Fountainbridge, Edinburgh EH3 9PE within 14 days of receiving our letter and we will be happy to cancel the account. Any requests for payment we receive after you exercise your right to cancel will be returned and products or services which require this account to operate will also be cancelled. We will repay to you any credit balance in your account together with any interest due if credit interest is paid on your account. You will be required to pay any charges for day-to-day business banking or other services that you may incur before we receive your request to cancel the account and we will deduct these charges from the monies we return to you. If your account is overdrawn you must repay the outstanding balance together with any interest and charges that you owe us within 30 days of exercising your right to cancel. Where possible we will help you find an account from our range which better suits your needs. The right to cancel does not affect your ongoing right to close the account as set out in the terms and conditions. 18

22 Section 5 Switching: Frequently Asked Questions 1. What is the Current Account Switch Service? It s a free service that lets you switch your current account from one participating bank or building society to another. It s been designed to be simple, reliable and stress-free, and is backed by the Current Account Switch Guarantee. 2. Can I switch my account on a date that suits me? Yes, you can choose and agree a date with Bank of Scotland and the process will start six working days before that date. (Working days are Monday Friday excluding bank and public holidays.) 3. What happens to payments that people send to my old account, i.e. salary, pension or benefit payments? The Current Account Switch Service will redirect payments to your new account. Each time an electronic payment is redirected an automatic message is sent back to the originator advising them of the new account details so they can update their records. Some organisations may contact you directly to confirm your details have changed. 4. What happens if there is a mistake or unnecessary delay in the current account switching process? The Current Account Switch Service is backed by the Current Account Switch Guarantee. This guarantees that any charges or interest incurred on your old or new account, as a result of a failure in the switching process will be refunded when you bring this to our attention. 5. Will switching my current account affect my credit rating? No, providing you repay any outstanding overdraft(s) on your previous account(s) as required by your old bank or building society. If there are any problems with payments (as part of the switching process) we will correct them and ensure your credit rating is not affected. 6. Can I switch my current account if I am overdrawn? Yes, and we may be able to provide facilities to help you pay off any overdraft, subject to our normal lending criteria. If this isn t the case you must make separate arrangements to repay your old bank or building society what you owe. 7. What if I change my mind? You can cancel your switch up to seven working days before your switch date. After that only certain elements can be cancelled. We will guide you through this process if you choose to do this. 8. When will the money in my old account be transferred to my new account? You will be able to access the funds in your old account up to and until your switch date when they will be transferred to your new account. 9. Do all Banks and Building Societies offer the same Current Account Switch Service? High Street banks and building societies and Internet and Telephone banks that display the Current Account Switch Guarantee Trustmark will offer the Current Account Switch Service. You can find a list of participating organisations at What type of accounts can I switch using the Current Account Switch Service? The Current Account Switch Service is for current accounts only. This includes personal, small business and charity current accounts. Small business accounts are those with an annual turnover that does not exceed 6.5 million and employs fewer than 50 people. Small charities have an annual income of less than 6.5 million and small trusts with a net asset value of less than 6.5 million. If you are still unsure if you qualify then please ask us to confirm. If you would like to switch other account types, such as a savings account, you will need to ask us if we are able to help you do this. 19