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2019-01-08 Payzone/PWC

2019-01-08 Payzone/PWC

Owned by brian.tobin@payzone.ie
Last updated: Apr 15, 2019

Date

Attendees

Agenda

  • Update on Revenue position
  • Feedback from Mobile operators
  • Scale of project for Payzone (Invoicing, credits, rebates)
  • Structure of pricing from operators / to retailers
  • How we manage large retailers (MRPI)
  • Communication plan
  • Impact on credit restrictions


Mobile operators:

Vodafone not ready. In the process of making changes to systems. Dealing with Eimear O’Sullivan whose responsible for Tax issues in Vodafone.

Eir are in line to be ready for changes.

No feedback from other operators.

Payzone aligning with Vodafone for change over.

Payzone to meet with Vodafone to discuss next steps. Open question regarding billing between Payzone and Vodafone. Two options available for handling new payment process. Vodafone will bill Payzone for gross value of top-up purchases and either 1). Payzone will calculate commission due and invoice Vodafone for same (preferred by Vodafone) or 2). Vodafone will calculate the commission due and send Payzone a self-billing invoice.

Concern raised by Glenn over cash flow considering value of top-up will increase once VAT is removed. Gavin suggested Payzone and Vodafone agree that Payzone will only settle value net of commission. Full invoice raised by Vodafone and commission invoice raised by Payzone but final settlement completed in one transaction.

Documents:

Jo Carey provided examples of suggested invoice layout to show commission and vat on commission. Current plan was to display commission as ‘Discount’ as per Navision. Gavin recommended this be displayed as ‘Commission’.

Gavin confirmed that VAT only need be shown on commission. From a commercial standpoint it might be necessary to indicate vat is not charged on nett value of top-up.

Gavin indicated the retailer should receive a self-billing invoice for commission.

Where retailers make a deduction from Payzone for commission (Eg Dunnes stores) VAT will need to be accounted for and displayed.


Timelines:

PWC recommend cut over on 3rd May as 1st April turn around would prove difficult considering testing that needs to be completed by both Payzone and the retailers.

A communication should go out to retailers by the End of January. Barry Keegan to lead on this.

Communication should highlight Payzone are moving to a self-billing invoice to calculate retailer commission. Retailers will need to cease charging VAT and will need to change their sale prices on their POS systems.

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