Verizon confirms $2 'convenience' fee for not auto-paying

updated 12:40 pm EST, Thu December 29, 2011

Verizon puts fee on paying bills with exceptions


Verizon has confirmed and expanded on its plans to charge $2 for one-time bill payments. Taking effect January 15, the "convenience fee" would apply to most online or phone payers who aren't set up to pay automatically. Some exceptions would exist, such as electronic check senders, home banking services, kiosks, or physical mail.

Customers will be explicitly told the fee exists before they start paying, Verizon said. It didn't say if it would mention which services could be used to waive the $2 fee.

The appearance of the $2 charge has sparked some anger with Verizon, which saw its profits grow without the fee in place. Its step may be an attempt to cut back on the number of customers who accidentally skip payments but can still afford them, setting up a more regular revenue stream than the carrier had in the past. [via Phone Scoop]


By Electronista Staff

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Previous Comments

  1. HappySlug

    Fresh-Faced Recruit

    Joined: Mar 2010

    +11

    Typical Business Move

    It's just like banks charging ridiculous fees to make a few more dollars off their customers without actually giving them anything more. It's pretty stupid, but unfortunately not surprising.


  1. Bobfozz

    Fresh-Faced Recruit

    Joined: Jul 2008

    +5

    Now I have to rethink keeping...

    Verizon. It was bad enough when they started charge us fees for photos and texting even though I wasn't using those services. Supposedly they were going to reimburse those who were screwed, but I wasn't. I asked, why is this being ON the default in the first place? Look at the sales person's face and they are killing themselves to avoid telling you, "this is the way corporate scams you." Instead they tap dance. AT&T has pulled similar stunts. Sprint doesn't tell their customers everything either (such as no limit to data, which is not true). Who is left? T Mobile. I don't know anything about them btu if they were willing to sell their soul to AT&T, how's that look?


  1. Mr. Strat

    Fresh-Faced Recruit

    Joined: Jan 2002

    +11

    What a bunch of..

    Why don't they merge with Bank of America? They can call themselves A$$holes Inc.


  1. SolarSaves

    Fresh-Faced Recruit

    Joined: Mar 2010

    +13

    Convenience this!

    If only us Verizon customers could unite and send the next payment due to Verizon by check through snail mail. They would change their tune if all of a sudden they started receiving several million checks through the postal system each month that need a lot more "inconvenient" human processing than on-line payments.


  1. azrich

    Fresh-Faced Recruit

    Joined: Apr 2010

    +1

    Every payment option costs money...

    Processing checks, credit card processing charges, even paying someone to count money. Charging to use their own system to pay seems odd to me. I can't imagine it costs more than processing checks or online bill payments. I guess customers are using credit cards THROUGH their system which adds to the costs, but really? $2?

    We as customers don't always understand all the fees involved when we use credit cards at a local biz, but this seems a little different. I used to accept CCs when I owned a local coffee shop. Trying to explain to a customer that using a CC to buy a $1.60 cup of coffee was the equivalent of me giving it away was difficult. I can't imagine how VZW is gonna explain this to it's customers.


  1. facebook_Jeffrey

    Via Facebook

    Joined: Dec 2011

    +6

    BS!!!

    This is just more BS!!! What everyone should start doing is showing up to pay their bills in person with PENNIES.


  1. facebook_John

    Via Facebook

    Joined: Dec 2011

    +6

    convenience fee? For Who?

    Convenience fee for who? Not the customer. What difference does it make if the customer pays with an auto payment system over the internet or logs in manually to do it? How does that effect Verizon in any way shape or form? This isn't a convenience fee, it's a rip off fee of $2 more of a customers money! Guess I won't be a Verizon customer. I feel sorry for anyone who is.


  1. facebook_James

    Via Facebook

    Joined: Dec 2011

    +1

    $2 Bill

    Verizon's $2 convenience fee has all the potential of backfiring on the scale of BofA's ill-conceived $5 debit card fee.

    "Convenience fee" happens to be a technical term used in our industry (see (a href="http://blog.unibulmerchantservices.com/everything-you-need-to-know-about-credit-card-convenience-fees">http://blog.unibulmerchantservices.com/everything-you-need-to-know-about-credit-card-convenience-fees), which designates a surcharge that merchants offering an "alternate" payment channel (e.g. mail, telephone and e-commerce) are allowed to add to the transaction amount to offset the payment processing cost. This is why Verizon will not be charging the fee for bank card payments made in person.

    So, even though payment card industry rules define it rather fuzzily, Verizon's $2 charge is technically legal. But that doesn't mean that the carrier's decision is smart. On the contrary, it is a real dumb move. Processing fees are a cost of doing business and should not be passed on to consumers. If you don't want to accept credit and debit cards, you don't have to, but if you decide to be doing it, you should be willing to pay for it. It is really that simple.


  1. chris2519

    Fresh-Faced Recruit

    Joined: Jul 2008

    +3

    what pigs

    I'm with AT&T, not Verizon, and I don't favor one over the other, but all I can tell you is that I find this completely outrageous, greedy, and piggish. I think you verizon customers shouldn't stand for it. These companies are just going to keep testing all of us to see how much they can get away with. Let's not let them.


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