Verizon Wanted To Charge $3.50 To Pay Your Bill… Just Kidding
from the for-now... dept
Last week, Verizon got some attention for plans to charge customers $3.50 to pay their bill if they paid by credit card or debit card. From an industry that specializes in ridiculous made-up fees, even this seemed beyond ridiculous. Given the consumer outcry about this, days later, Verizon decided it was just kidding about the charge, and that “this charge will not take place as scheduled.” Of course, that sounds like it’s just waiting for another chance to introduce it when people aren’t paying as much attention.
Comments on “Verizon Wanted To Charge $3.50 To Pay Your Bill… Just Kidding”
If I’m not mistaken in most states there are consumer protection regarding charging more for a credit card payment. Most companies can however can provide a discount for cash payments but they can not advertise the cash discount price as the official price.
We’re considering action against my wife’s university due to their policy of charging 3% more for CC payment. I imagine they’re collecting millions in “fees” and I’d also bet their discount rate isn’t 3%, it’s more likely sub 2%. We just haven’t had time yet to contact consumer affairs and the state AG.
Simple
This is easy. They’ll offer a $3.50 discount to people who sign up for automatic billing. Then a few months later they’ll raise all their rates by $4. That way, everybody’s a winner!
Note: Article doesn’t apply to mobile phones. Don’t be confused; they were only going to do this to their landline, DSL, and FiOS customers.
There are fees specifically for accepting credit cards that don’t apply to e.g. e-checks. My university refuses to accept Visa because there’s an extra fee for them that they can’t pass on to the card owner; they would have to charge all users equally for the Visa fees, which is unfair.
Of course, if they’re covering the CC fees they should also lower the prices for people who pay in other ways. This way they’re just getting more profits.
They were kidding about kidding
I just payed my bill not 30min ago, they charge the $3.50.
Re: They were kidding about kidding
Well, I can check as a Verizon customer as well if there’s still ambiguity over whether they’re charging this or not….
Re: Re: They were kidding about kidding
There was no ambiguity in the message; “Your account will be charged [amount payed] plus a three dollar and fifty cent processing fee.”
Re: Re: Re: They were kidding about kidding
If you’re paying by phone, that would explain it. Verizon allows you to pay your bill through an automated phone service which they don’t operate, and that service adds a $3.50 processing fee.
Among many shady quirks of this setup is the fact that Verizon claims you can pay your bill 24/7 by phone, which is technically true. However, you need to know your balance owed when you call (or are transferred to) the phone bill paying service, because that service doesn’t know your account balance.
Re: Re: Re: They were kidding about kidding
Yeah I get the same thing if I make my student loan payments over the phone. Even though in my case I’m talking to an actual person and that actual person adds a $10 fee for it.
The big question
Are they sure that’s $3.50 per transaction… not $0.035 or $350.00? Then again, those are all the same numbers to VZ.
Actually, my power company already does this
I live in FL, and FPL does this. They use a 3rd party processing service (Western Union Speedpay), and Western Union charges $3.25 to make a payment (with a $400 limit, if you want to pay more, you have to break it up). There are alternatives of course, you can pay by giving them your bank info, or by cash in person, or check/money order by mail…
Sucks, but beats having to do one of those with the waste of time, etc…
Re: Actually, my power company already does this
I haven’t tried to pay my JEA bill via credit card since moving to Jacksonville, but I do remember the FPL.
My rent is even worse. If I pay that over the phone (the only way to pay credit card… debit can be paid on the website) they charge over $25 ‘convenience’ fee. And, incidently, they must use a customer-facing input system because they couldn’t complete the transaction without my CID off the back.
This is new?
SWEPCO (electric) – $2.50 charge
Our City Water – 10% of bill
I’m used to it by now. I think I plunk down at least $20 a month in these ‘fees to pay my bill’.
They lost one fee and subsitute another ... how typical ..
This is probably because they need to make up for the $1.99 they are no longer making on cell phone data charges …
Duke Energy among others does this as well.
If you want to pay be credit card, you have to pony up another $3.50 or $4.50 (I forget, I won’t do that).
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I had to speak up on my last bill there was a small fee for checking my voice mail. Did not matter if I did from a land line or from my cell phone.
It took the call rep and their managers about 15 minutes to decide to credit my account to nearly $20 in voice mail checking fees. BTW: My account does clearly state that checking my voice mail is free from my cell phone.
Real reason
These fees are basically there to the advantage of the credit card companies. For the most part you can get a card that gives you 1%-5% in points back on all purchases for whatever (miles, cash, etc.) I have found that generally 100 points is equal to $1 or 1%. If you just want to pay everything with your credit card because you get the rewards you may actually be losing (or at least a near wash) when they charge the fee. The fee discourages credit card use (if people are penny pinching) but some pay up. I am sure the actual transaction cost is not $3.50 so the company gets to skim the overage. But I can mail in a check for no fee. I am sure the cost of processing a check is much more than the cost of charging my credit card.
Meh
Just another reason why going with a month-to-month (for lack of a better term) phone (I use MetroPCS, Boost Mobile is another) seems like the best of all worlds.
They will probably..
just add yet another fee on the bills instead. After all, they really need the money for the executive bonuses.
reminds me of my GEICO car insurance payments..
Can’t afford to pay the entire 12 month policy at once? That’s OK, we’ll split it up monthly and charge you a fee for that.
The govt. doesn’t regulate credit card surcharges but the credit card companies don’t like it. A lot of gas stations will try to charge different prices, but if the credit card company finds out they will send a warning letter to the store telling them to cut it out or they will pull the account.
I guess today the stores have more power in this struggle because I see it in quite a few places. Guess the stores just said “fine, pull the account”
I’m almost ready to cancel my Verizon phone as it is over mysterious fees and charges. This would be the straw.
You guys in the US really do things in a odd fashion. In the UK, paying by card (any) gets you a reduction on your bill, not an increase.
What payment method do they want you to use? Cheques?
Come join the 21st Century.
not a surprise
Sears does this too, if you want to pay by phone. Online is Ok, but to pay by phone is an additional $14.
FOURTEEN frickin’ dollars!
That’s outrageous in anybody’s book.
To think that people are now charging customers as they try to PAY their bill….just completely shocks me and should NOT be allowed…period
Enough of this nickle-and-dime crap
130 1/2 Garhart Lane
That’s nothing…Harley Davidson, in their infinite inability to give a hoot about anything, charges $6 to pay through Direct Pay with a credit/debit card or by checking account withdrawal. They won’t even answer a complaint form request for some type of understanding why they do this. One would think that by saving them money through not having to send out a paper bill, they might be thankful. Instead, they punish you for their convenience.
In return for this injustice, I make them send me a paper bill anyhoo. Phooey on them…and their stinkin’ fees!
In Billings, Mt verizon charges 3$ to pay your bill in cash. Looking for a new company anyone?