I had an email from Dragon’s Back yesterday. It was in error because I’ve pulled out and am getting a refund but this was asking for the 2nd instalment. (mail list has been fixed now).
However, looks like the monies aren’t being passed on the the event organisers, which must be rough. Here’s an extract:
### Would you be willing to switch to paying your next instalment(s) by bank transfer?
Before we get into the details, please allow us to explain.
It may astonish you to learn that Ourea Events has received no entry fee income since February 2020, roughly a month before the first UK lockdown.
### Wait, what happened to the money I paid you for my entry on my credit/debit card?
Participants who have made a credit or debit card payment via the SiEntries checkout for an entry into one our races (or for any optional extras), since February 2020, may well assume that we would be looking after their entry fee in our own bank account. However, the reality is that it is our acquiring bank (not SiEntries), who process all card transactions on our behalf, are retaining all of this money to date.
Please note: we are not being singled out here – retaining and the use of deferred settlements is standard practice for an acquiring bank when their customer (e.g Ourea Events) is processing income for a service to be delivered sometime in the future e.g. tour operator, event organiser who would be classed as ‘high risk’.
We are now not expecting any funds to be released by our acquiring bank until the month after each event has occurred, hence the significant cashflow interference challenge.
### But you’ve been able to process refunds without trouble?
Yes, and we continue to do so, but when we have processed any refunds for customers since February 2020 – our acquiring bank have refused to allow these refunds to come from the cash they hold on our behalf in almost all cases.
So, all of these refunds have also been funded from our own cash reserves.