Payment Enablement Fee
Comments
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Randy Sprabary:
Interesting event:
https://finance.yahoo.com/news/blackbaud-inc-blkb-cfo-exec-221516585.htmlWow. Is this a normal thing to do?
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I just called Customer Support and essentially told them this is inappropriate and inexcusable. I've long been a huge advocate of BB/RE products so this is the first time I've aired a negative comment. RE is an expensive solution for a reason, and the fees surrounding technology certainly are built into our contract terms. To suggest otherwise is ludicrous. This seems illegal, and just plain negligent. They can't possibly have thought that a non-consensual contract addition - via email and to their entire client base - would be met with acquiescence. To me this hints at more significant issues within the business. The strategic way to go about this would be at contract renewal and in negotiating new contracts.
The real question here is: If enough of us call in to complain, will they listen?5 -
This is correct.1
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I would contact BB Customer Support before going down this avenue. I believe that any payment system that flows through RE will still result in a $600 annual fee.2
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Sunshine Watson:
Was your email to customersuccess@blackbaud.com ? I received a reply from them. I wasn't happy about it. They said they were thinking about adding this fee for some time. If they were, why did customers receive absolutely no warning?
I emailed customer success but copied the email address the original message came from. That one isn’t monitored.
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Judy Spigarelli:
Hi Patti, Which email is not a monitored mailbox? Also, why would an email exist that is not monitored? I must be missing something.
PaymentEnablementFee@blackbaud.com - the address the original message came from.
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Sunshine Watson how long did it take to get your reply? I have not heard from them and am quite disappointed.1
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Karen Tuecke:
Sunshine Watson how long did it take to get your reply? I have not heard from them and am quite disappointed.Karen Tuecke it was within a few hours. I'm guessing they are backlogged with these emails now, but they should at least send out a response.
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I am disappointed... nothing for days:(2
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I received an automated response. No call yet1
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For those talking about contractual arrangements, the response that we received when we queried this via the contract angle was that this is covered in the Payment Service T&C (https://www.blackbaud.com/files/paymentservicesterms.pdf), particularly line item 7, which states (emphasis mine):
"These Payment Services Terms (including the Exhibits attached hereto) are subject to change in Blackbaud’s sole discretion. In the event of any such change, Blackbaud shall post a revision of these Terms at http://www.blackbaud.com/files/paymentservicesterms.pdf and Payment Services shall be subject to such revised terms."
This, is included on their general T&C page (https://www.blackbaud.com/terms-and-conditions), which was hyperlinked in our University's contract.
Like another poster said, I understand it, I don't like it. To add to that, I think that how it was advised and implemented is in poor judgement.5 -
The org that I have been working with has not been happy with BB from day 1. It was a botched conversion from the start (I was brought in to fix it) and they have been wanting to jump ship for awhile. Lots of promises that turned out very badly. They only stayed because the contract renewed before they realized it.
This fee coming at a time when the org has already laid off staff is likely the nail in the coffin. Since we don't even know who our rep currently is (we went through 3 in 1 month) I don't feel like there is any point in us complaining. We are beginning the process of choosing another vendor.
They are likely to see a big exodus of smaller orgs but that might be what they want.3 -
It's also really hard for them to justify that the fee provides us with "better service" when shortly after they jack the price up both BBMS and OLX crash spectacularly:
Active Issue Alert – Blackbaud Merchant Services - #000232236
Active Issue Alert – Online Express - #0002322672 -
I had contacted Blackbaud when this was announced and now again since I received the invoice today (assigned customer success staff person, customersuccess@blackbaud.com, paymentenablementfee@blackbaud.com). I fully expect ridiculous contract price increases from Blackbaud - on renewal - but layering this on in addition and at this time is an incredibly abusive practice.
I am not approving this invoice for payment and have asked Blackbaud to contact me. Has anyone received satisfactory communication or a solution from BB?2 -
The funny thing is.. we don't even use any payment processing tools through RE and we are still obligated to pay this fee. They are stating Raiser's Edge itself CAN process, yet i told them we don't plan on ever processing anything to RE. they still said we needed to pay this fee.2
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Like you, we do not use any of the payment services. We have notified our account manager of our intention to not pay. I have seen posts on this board in which Blackbaud directs us to some language in the contract that permits this fee. This is just a clever way that Blackbaud has found to drive revenue following a difficult year and they are doing it on the backs of their nonprofit clients - small and large.3
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Yeah. This is a blatant end run for a contract increase. I'd imagine they took a big financial hit from having to address the data breach. And apparently, a poorly budgeted R&D operation. If they want to increase pricing, fine. Do it at contract renewal time.5
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Just thought I would share the communication I received and my response. I'll be waiting for that call from Blackbaud senior management...
From: Wendy DeAngelo
Sent: Tuesday, April 6, 2021 3:59 PM
To: Payment Enablement Fee; CustomerSuccess
Subject: RE: Notification of payment enablement fee
Thank you for your reply. My organization’s current Blackbaud contract was signed and rate set in 2020. We do not, and will not, bear responsibility for Blackbaud’s “ increasing costs we have been absorbing over the years…”. We have paid for these costs through our current and previous contracts and merchant service fees - and I am positive we will pay for them yet again IF we choose to renew our contract with you in the future through grossly inflated rate increases.
I am not seeking a 60 day extension. I am registering my objection to this fee and strongly suggesting your team reconsider this inappropriate step. I would welcome a conversation with any member of Blackbaud’s senior management team who would like to speak with me directly.
F
Sent: Tuesday, April 6, 2021 3:15 PM
To: Wendy DeAngelo; Payment Enablement Fee; CustomerSuccess
Subject: RE: Notification of payment enablement fee
Hi Wendy,
I’m sorry to hear of your dissatisfaction on this matter, and can absolutely help track down answers to any questions you may have about this invoice/fee. The Payment Enablement Fee is being introduced to cover the increasing costs we have been absorbing over the years while investing substantial, ongoing resources to build, maintain, and support these payment-enabled solutions. This is not a method of recovering costs associated with the Security Incident last Summer.
Blackbaud is committed to continually investing in innovation and ensuring our payment-enabled solutions are secure, reliable, and compliant. We value you as a customer and while I’m unable to waive the fee, I can offer a 60-day extension on your payment. Is this something that would help?
I look forward to hearing back, and helping however I can.
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Although I am very upset about this fee, I know we have to pay for it. So I just tried to pay my invoice via credit card...and ironically I cannot pay by credit card. This is ridiculousness!
Initial message:
I would like to pay for my Payment Enablement Fee via credit card. Your system will not let me do that. I find it ironic to have to pay a Payment Enablement Fee for credit card usage and you will not accept a credit card payment?
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1. Payment Services Payment Services (“Payment Services”) includes the work we do to build, maintain, and support the following types of online payment connections:
a. End-to-end processing: Blackbaud’s Solution for secure credit/debit card storage in Blackbaud’s PCI-DSS compliant vault (“BBPS”) and Blackbaud’s Solution for a credit card payment gateway and payment processor known as Blackbaud Merchant Services (“BBMS”) in accordance with Exhibit A, BBMS;
b. BBPS with Blackbaud interconnect to third-party merchant services. Blackbaud provides BBPS and a credit card payment gateway interconnect service to an approved third-party credit card payment gateway and a supported third-party credit card payment processor in accordance with Exhibit B, Third-Party Merchant Services with Blackbaud Gateway Interconnect Option. With this connection, You are responsible for directly engaging and contracting with a Blackbaud approved Payment Gateway and Payment Processor.
c. Other connections to third-party gateways or processors.1 -
Final email received and my response... sorry if I am going overboard here.
Hello Karen,
For some reason, we got disconnected. I am looking into other methods for your invoice payment. Is via credit card the only way you can make the enablement payment fee payment? If this is the case, can you provide your invoice number, please?
Please let me know if you have questions. The link below will take you to Case Central where you can view your case and add updates or notes to this case:
https://app.blackbaud.com/support/cases/018290322
Sincerely,
Tiffany
Blackbaud Customer Support
I disconnected on purpose. You were not helpful in any way…
This is exactly what YOUR, Blackbaud’s Payment Enablement Services includes:- Payment Services Payment Services (“Payment Services”) includes the work we do to build, maintain, and support the following types of online payment connections:
- End-to-end processing: Blackbaud’s Solution for secure credit/debit card storage in Blackbaud’s PCI-DSS compliant vault (“BBPS”) and Blackbaud’s Solution for a credit card payment gateway and payment processor known as Blackbaud Merchant Services (“BBMS”) in accordance with Exhibit A, BBMS;
- BBPS with Blackbaud interconnect to third-party merchant services. Blackbaud provides BBPS and a credit card payment gateway interconnect service to an approved third-party credit card payment gateway and a supported third-party credit card payment processor in accordance with Exhibit B, Third-Party Merchant Services with Blackbaud Gateway Interconnect Option. With this connection, You are responsible for directly engaging and contracting with a Blackbaud approved Payment Gateway and Payment Processor.
- Other connections to third-party gateways or processors.
We have the ability to request a check and to have it sent. Of course this takes time as we do not normally pay invoices by check, so it may arrive after the due date, but not by our fault. The delay would be because of your processes not being current with a payment enabler usage such as a credit card to process our invoice.
If you discover a way to use a credit card, please reach out to me.
Sincerely,
Karen
3 - Payment Services Payment Services (“Payment Services”) includes the work we do to build, maintain, and support the following types of online payment connections:
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We just received our invoice for payment-enabled solutions and I, too, am shocked and appalled that Blackbaud has chosen to charge this fee. As a nonprofit, we took a huge hit during the pandemic, as did so many others. We use RE NXT which already has very high fees, and will now be looking at other platforms.2
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I too have questioned this invoice and the response that I got was honestly a bit concerning...I understand this is an increase in costs, but we are unable to waive the fee. It is applicable to all customers with a payment-enabled solution. Even if you are not currently processing funds in your payment-enabled solution today, our investment is to ensure secure, compliant, reliable connections remains. In the future if you elect to process payments, you will have a secure, compliant and performant way to process funds.
To me the implication is that the platform is not currently secure, compliant and reliable. If you need to charge customers an extra monthly fee in order to meet your legal obligations then something is very wrong at Blackbaud. Blackbaud has a market cap of over 3 billion dollars but your NFP customers are the ones that need to pay in order for you to be compliant?
Have any Australian users considered discussing this matter with the ACCC?1 -
For what it is worth - I decided to message Blackbaud CEO Tim Kachuriak via LinkedIn this AM. Perhaps he should be hearing from more of his customers directly:
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Wendy DeAngelo:
For what it is worth - I decided to message Blackbaud CEO Tim Kachuriak via LinkedIn this AM. Perhaps he should be hearing from more of his customers directly:Your message is well-written. But who is Tim Kachuriak? The CEO of Blackbaud is Michael Gianoni. When I google Tim, he is the CEO & Founder of Next After. Perhaps he's just involved in a part of Blackbaud unfamiliar to me.
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Thanks for reaching out! Error corrected and message rerouted to Michael Gianoni!4
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Following this closely. Quite concerned about this $450/ month payment enablement fee
What are your top recs for making an official complaint?
Many thanks2 -
We also complained and got a similar answer. Further, when we told the customer service rep that we have no intention of using RENxt payment services and never agreed to the charge as part of our contract renewal and would therefore be contacting our sales rep next, the CS rep replied, " Your account executive or sales person would likely have had no idea of this charge, this was only recently introduced by the highest levels of Blackbaud, I do not think they would be able to help." Say what?!
$450 is a huge cost increase for us when we are not getting additional functionality. Adopting RE as our payment platform would likely also increase our ~2% processing fee with PayPal which I am not interested in doing.
Lynne
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We were also shocked at this new fee. I reached out to Customer Support today to add our voice and express our disappointment with this added cost and the way it was imposed.2
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