LV Shipping - Shorted me for $20 and blamed bank

jonny-chicken

jonny-chicken

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Jun 24, 2009
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I did a load for LV Shipping and they had me fill out a form to receive electronic payments.

When the payment came in it was short by $20 USD.

I checked with LV Shipping and they claimed they had sent the full amount.

I checked with my bank and they sent me a document showing that they did not receive the full amount from LV Shipping's bank. It was short $20.

After providing a copy of this to LV Shipping, they explained that their bank deducts $20USD from every transfer going to Canada, and basically I am SOL.

I've received electronic funds transfers from many companies, including ones based in the US, and this is the first time anyone has deducted anything.

Anyone else experience this?
 
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This is very common in respect to US wire transfers because most Canadian banks use an intermediary bank in the US to receive US funds. If the payor uses a small bank they also may use an intermediary bank to actually wire funds. In all cases each US intermediary bank will deduct their fee- sometimes 20 and sometimes 17, to pass the funds on. This does not seem to happen if paid by ACH.

What LV Shipping is saying is probably true. To find out you will have to trace your funds which will only trace from the intermediary bank to you. Then you will have to ask the intermediary bank to trace their transfer from its source where you will see the amount taken off for service. (That is if you can speak to someone who will entertain you inquiring about a bank to bank transfer).
 
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jonny-chicken said:
I did a load for LV Shipping and they had me fill out a form to receive electronic payments.

When the payment came in it was short by $20 USD.

I checked with LV Shipping and they claimed they had sent the full amount.

I checked with my bank and they sent me a document showing that they did not receive the full amount from LV Shipping's bank. It was short $20.

After providing a copy of this to LV Shipping, they explained that their bank deducts $20USD from every transfer going to Canada, and basically I am SOL.

I've received electronic funds transfers from many companies, including ones based in the US, and this is the first time anyone has deducted anything.

Anyone else experience this?
Click to expand...


You're lucky it's only 20$ The US bank dinged us 35$ US. Not worth it. Will wait for them to mail the cheque.
 
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I only take checks from the US for that reason. With wire or e transfers one never knows what service fees one encounters. Funny story: Back 2008/2009 I had an American carrier refer me to the US military to move armoured personnel carriers from WI to ports in the southeast. It's a carrier I had used often, and we had become friends over a couple of years. Soo, I got set up to run US military loads.. and boy.. did they ever pay well.. checks always came fast too. And then one day.. about 9 months into the deal. someone called me to advise they were setting up for payment via wire transfer.. that's when the light when on and they discovered I'm in Canada.. It was one of those oh shit moments as they don't generally tender freight out to foreign brokers (at least not on purpose)... and so the gravy train came to an abrupt halt..
 
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They began this practice Jan 1 , 2011 where Landstar charges 1.75 per load for an Insurance contingency fund. Its not about the postage fees because we often get many loads on one check and there is 1.75 for each one. It absolute BS so each order we have with Landstar I charge it on top and make sure its in their rate confirmation. We always get asked to round our price but we say no and they pay it so all our invoices say:
Linehaul - 1600.00
Landstar Insurance Contingency fee 1.75
Total 1601.75

Here is a clip from the Landstar Contract:

LandsarClip.JPG
 
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That's crazy.. carrier should add their own fees.. i.e. tire inflation verification fee.. load completion fee.. scheduling fee.. etc..
 
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jonny-chicken said:
I did a load for LV Shipping and they had me fill out a form to receive electronic payments.
When the payment came in it was short by $20 USD.
I've received electronic funds transfers from many companies, including ones based in the US, and this is the first time anyone has deducted anything.

Anyone else experience this?
Click to expand...

Companies have to watch how they complete electronic payment setup forms and ask a few questions first.

If you have a customer in the U.S. wanting to pay electronically - you need to CONFIRM with them how the funds will be transferred. If it is via wire (most common) - you will be charged a fee for it from your bank. If it is an ACH/EFT payment - you should not be charged any bank fee. Wording on setup forms such as 'swift code' - these automatically mean a wire transfer and extra charges for YOU.

You should be able to switch to an ACH payment with LV moving forward to avoid the wire charge. It is normally around $15 for a bank charge on a wire. The customer in the U.S. likely paid no fee to send you the funds here in Canada. Sounds like their own charge or an "admin fee".
 
AccountsReceivable@DRC said:
Companies have to watch how they complete electronic payment setup forms and ask a few questions first.

If you have a customer in the U.S. wanting to pay electronically - you need to CONFIRM with them how the funds will be transferred. If it is via wire (most common) - you will be charged a fee for it from your bank. If it is an ACH/EFT payment - you should not be charged any bank fee. Wording on setup forms such as 'swift code' - these automatically mean a wire transfer and extra charges for YOU.

You should be able to switch to an ACH payment with LV moving forward to avoid the wire charge. It is normally around $15 for a bank charge on a wire. The customer in the U.S. likely paid no fee to send you the funds here in Canada. Sounds like their own charge or an "admin fee".
Click to expand...

Yeah, I do see that now on their setup form, Swift code. I will watch out for that in the future.

LV never offered any other electronic payment methods, in fact I think they refuse to process cheques.

I will just stop doing loads for them, no big deal. There are lots of brokers out there who don't use such weird payment schemes, so I 'll just move on.
 
I might not necessarily give up on the company and refuse to do business. If they have lanes that you can service, why not do as Jim L does and just add the wire transfer fee onto your rate? It would be a shame to give up dealing with them entirely over this issue if you are happy with them overall. Just something to think about...
 
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