Smartpay FAQs

How did this error happen?

This was a technical error on our old platform incorrectly mapping transaction and refund charges to a VATable charge, when they should not have been VATable.

Has this issue now been corrected?

Yes. When you moved to our new platform the issue ceased as our new platform is correctly applying the ePDQ transaction processing and refund charges without VAT.

How long have you been charging me VAT incorrectly?

The mapping has been incorrect for approximately seven years.

Why are you only going back for to April 2014?

HMRC only allows us to amendment our respective VAT returns back to that date. Assuming you are VAT registered, you’ll have already claimed any VAT back for the period prior to that.

Am I better or worse off as a result of this?

Assuming you have already reclaimed the VAT you’ve paid us on your previous VAT returns, this shouldn’t have made any difference.

Do I need to advise my accountant of this?

Not necessarily. If your accountant prepares your VAT return, they may notice the credit on your statement and ask you about it, but they should be fully aware of how to post the credit back to your VAT account.

Do I need to contact HMRC about this?

No, there’s no need for you to contact HMRC about this. Guidance on how to adjust your VAT account can be found in the VAT Public Notice (Public Notice 700) at gov.uk/guidance/vat-guide-notice-700

Please note that we cannot provide tax advice and you have sole responsibility for the management of your organisation’s tax affairs.

What if my business is not VAT registered?

If your business is not VAT registered, or wasn’t during this period, when you receive our VAT credit to your statement, then this credit will be reimbursing your business for the VAT we’ve been charging you incorrectly since April 2014. It will be set against, and therefore reduce, your future fees from us.
As you are not/were not VAT registered, you wouldn’t have previously claimed this VAT back from HMRC, so there is nothing to return to HMRC. So effectively the credit is being returned to your business.

Are you paying me interest on this money that you’ve held for four years?

No, we are not required to do so, as in most cases we expect our customers will have already claimed the VAT back so will not be out of pocket. So we’re merely making this adjustment via our VAT return.

Can you send me a cheque for this amount instead?

No. As you may have already claimed any VAT you paid us from HMRC on your historic VAT returns, we need to adjust this as a VAT credit on your invoice.

If my business isn’t VAT registered or is within the fixed rate VAT scheme so hasn’t already claimed the VAT charged, or was partially exempt and therefore unable to reclaim the VAT charged in full how do I claim back for the period prior to 1 April 2014?

If your business has never or has only partially claimed the VAT back on our invoices then you are entitled to further refunds for any VAT we incorrectly charged you prior to 1 April 2014. If this is the case, please write to us with answers to the below questions at ePDQVATEnquiries@barclayscorp.com and we will look into this for you and provide a response within 28 days. The Business you are claiming for must be the one to which we invoiced.

Was the Business we billed VAT registered?

  • • If yes, for what periods was the Business VAT registered?
    • If the Business was VAT registered was it partially exempt?
    • If the Business was partially exempt, what was its annual VAT recovery rate for each partial exemption year i.e. the recovery rate percentage used in each partial exemption annual adjustment?

Please note if the Business was partially exempt but still recovered the VAT we charged erroneously in full, it is not entitled to a refund from us as it will have recovered the VAT from HMRC through its VAT returns.

Changes to your ePDQ transaction fees

Below are some FAQs to answer questions you may have. 

What will be changing?

The ePDQ transaction fee will now apply to the volume of all transactional activity through the ePDQ gateway.  Currently it is only applied to your settled transactions. 

When will the change take effect?

The change is coming into effect from the 1St August 2018 but will be reflected in your September statement. Please note that your attempted transactions made in August will appear in your September statement. This arrives in early October because we are changing to billing you a month in arrears.

Why is this change being made?

This change will more accurately reflect the way you use the gateway and the associated operational cost.  This is consistent with how other gateway providers charge.

Where can I see the volume of attempted transactions that I do on ePDQ?

You can still view transactions via the ePDQ back office portal. The actions which will be charged for (but are not limited to) are:

ANV - Refund
AUT - Authorised
RES - Authorisation
RFD - Refund
RFS – Partial refund
SAS – Last capture (when 2 steps or several captures based on 1 bigger amount authorised)
STO – Declined by fraud
VEN - an approved and settled transaction

It is possible for a transaction to go through several actions e.g. being declined before going on to be successfully authorised.  If the transaction remains in the same PayID throughout this, then it will appear as 1 transaction on MI reporting but would be charged more than once. 

You can view all attempts on a transaction, helping to reconcile to your invoices, by following the steps below;

  • •          Log in to your ePDQ account
  • •          click on ‘Operations’
  • •          click on ‘Financial History’
  • •          Specify the relevant date range to search against
  • •          Tick all boxes in the 'status' section
  • •          Tick ‘Detailed list; in the 'group transactions by' section
  • •          Click ‘Download list’  and save the report so you can open this in your chosen application

Is the ePDQ transaction fee increasing?

The rate of your ePDQ transaction fee is remaining the same.  The transaction fee is now being applied to all of the scenarios as per above.  Therefore, the total fee will be dependent on the volume of attempted transactions your business does.  Your total ePDQ transaction fee could be reduced if you decrease the number of attempts for each settled transaction.  This will vary for each type of business. 

Tips on reducing unnecessary charges.

You can amend the default settings in ePDQ to reduce unnecessary charges.  In particular, the default settings for recurring payments is set to attempt a transaction up to 5 times.  This could mean that you could be charged up to 5 times per transaction.  You might want to reduce this to a more sensible volume and explore all other config settings around the number of attempts which can be made per transaction. 

These can be found under Config / Technical Information / Global Transaction Parameters Section of the back office portal.  The link to the portal is https://support.epdq.co.uk/en/login