New Verizon Wireless fee for online/phone payments

Tilted

Tilted

..
Verizon Wireless has announced that, beginning January 15th, they will charge customers who make single payments online or over the phone a $2 'convenience' fee. The fee will be waived for those that pay by electronic check and will not apply to those enrolled in AutoPay (even if payment is made by credit card) or payments made through the mail.

I think this has more to do with discouraging credit card use than with discouraging online payments. They likely want more people to pay online, they'd just prefer that payment was made with check or by other methods where they don't have to pay a fee to a third party (e.g. a fee to a credit card company).

We may start to see more of these kinds of policies from companies and retailers (i.e. where people are offered discounts for paying with something other than a credit card or debit card). Prior to the Dodd–Frank Wall Street Reform and Consumer Protection Act, which was passed last year, payment card network policies often prevented retailers from offering customers discounts for paying with cash or check. The Durbin Amendment, which is part of that Dodd-Frank law, prohibits such policies. Retailers can now, without losing the ability to accept credit cards, offer discounts for other forms of payment and establish minimum and maximum transaction amounts for which they will accept payment by credit card.

Customers Encouraged to Use Options to Avoid Single Payment Fee That Starts Jan. 15
 
awpitt

awpitt

Main Streeter
Tilted said:
Verizon Wireless has announced that, beginning January 15th, they will charge customers who make single payments online or over the phone a $2 'convenience' fee. The fee will be waived for those that pay by electronic check and will not apply to those enrolled in AutoPay (even if payment is made by credit card) or payments made through the mail.

I think this has more to do with discouraging credit card use than with discouraging online payments. They likely want more people to pay online, they'd just prefer that payment was made with check or by other methods where they don't have to pay a fee to a third party (e.g. a fee to a credit card company).

We may start to see more of these kinds of policies from companies and retailers (i.e. where people are offered discounts for paying with something other than a credit card or debit card). Prior to the Dodd–Frank Wall Street Reform and Consumer Protection Act, which was passed last year, payment card network policies often prevented retailers from offering customers discounts for paying with cash or check. The Durbin Amendment, which is part of that Dodd-Frank law, prohibits such policies. Retailers can now, without losing the ability to accept credit cards, offer discounts for other forms of payment and establish minimum and maximum transaction amounts for which they will accept payment by credit card.

Customers Encouraged to Use Options to Avoid Single Payment Fee That Starts Jan. 15
Click to expand...


They can do this because it's expensive for the customers to bail. Those early termination fees will prevent a revolt like what BoA experienced.

I wonder if this new fee would be considered a change in contract? Supposedly, if Verizon changes a fee or terms part way through a contract term, the customer has 30 days to cancel the service without the termination fee. I'm trying to verify the authenticity of this.
 
getbent

getbent

Thats how them b*tch's R
This is such crap. I'm sure they make more than enough $$ to offset the cost of accepting credit card payments. I hate mailing a check anywhere. I hate having to wait for the check to clear when you can use a check card and it shows up in your account alot faster. I guess if they continue to accept electronic checks online I could do that but then I loose the points I get for using my card. Ugghh!
 
garyt27

garyt27

INAFJ
I use my check card online from my bank. they send a bill email I pay the amount stated, now how would they include the $2. On the next bill?
I will cancel due to policy changes, anyway, pay as you go is cheaper now.
 
struggler44

struggler44

A Salute to all on Watch
awpitt said:
They can do this because it's expensive for the customers to bail. Those early termination fees will prevent a revolt like what BoA experienced.

I wonder if this new fee would be considered a change in contract? Supposedly, if Verizon changes a fee or terms part way through a contract term, the customer has 30 days to cancel the service without the termination fee. I'm trying to verify the authenticity of this.
Click to expand...

Let us know.....
 
acommondisaster

acommondisaster

Active Member
getbent said:
This is such crap. I'm sure they make more than enough $$ to offset the cost of accepting credit card payments. I hate mailing a check anywhere. I hate having to wait for the check to clear when you can use a check card and it shows up in your account alot faster. I guess if they continue to accept electronic checks online I could do that but then I loose the points I get for using my card. Ugghh!
Click to expand...

Pay it through your online bank account. That's an electronic check, which will not be charged the $2 fee. They're going to charge people who go to the verizon website or phone in a payment. A lot of places charge far more than $2 for over-the-phone payments.
 
acommondisaster

acommondisaster

Active Member
garyt27 said:
I use my check card online from my bank. they send a bill email I pay the amount stated, now how would they include the $2. On the next bill?
I will cancel due to policy changes, anyway, pay as you go is cheaper now.
Click to expand...

That's an electronic check and won't be charged the fee.
 
acommondisaster

acommondisaster

Active Member
Geez, you guys, kwitcherbichin. READ the article. Here are the provisions, in case you don't want to clicky the link:
---------
There are numerous payment options available to our customers where the fee is waived or where no fee applies. They include:

1.Electronic check online (My Verizon Online, My Verizon Mobile/Handset). Fee waived.
2.Electronic check via telephone. Fee waived.
3.Enrollment in AutoPay using credit/debit/ATM card or electronic check; fee does not apply
4.Online from the customer’s home-banking service provider website; fee does not apply.
5.Credit/debit/ATM card, electronic check or cash at a Bill Payment Kiosk, Panel or with a representative at a Verizon Wireless Communications Store; fee does not apply.
6.Use of a Verizon Wireless Gift Card or Verizon Wireless device Rebate Card to pay a bill in-store, online or by telephone; fee does not apply
7.Paper check or money order mailed to the VZW remit address on customer’s bill; fee does not apply.
--------------
So....put your checkbooks away and stop whining. You'll get charged if you phone in your payment or if you pay online at their website.
 
Tilted

Tilted

..
awpitt said:
They can do this because it's expensive for the customers to bail. Those early termination fees will prevent a revolt like what BoA experienced.

I wonder if this new fee would be considered a change in contract? Supposedly, if Verizon changes a fee or terms part way through a contract term, the customer has 30 days to cancel the service without the termination fee. I'm trying to verify the authenticity of this.
Click to expand...

I don't think the consideration, from Verizon Wireless's standpoint, depends much on a lot of people being committed to 2-year contracts. I don't think many people would be likely to bolt anyway, but if they were - and the only thing preventing them from doing so was being under contract - Verizon might well think better of implementing this policy change. It's not good to have a ton of really pissed off customers, even if they'll need to remain a customer for a while because of contractual commitments. Further, they'd be able to leave after the contract is up anyway. If there are many that would, this policy wouldn't be advisable.

And yes, I believe there is a time period in which you can choose to terminate service (i.e. without being liable for the early termination fee) after Verizon Wireless makes a change to its business polices that has a material adverse effect (that's a standard which is fairly commonly used in contracts) on you. However, if you used the service after a change went into effect, you may have an issue with having implicitly accepted the change. If anyone intends to do this, they should read their customer agreement (and possibly investigate applicable laws) to make sure of what they can do and how they need to go about it.

One thing that people could do, if they don't want to accept noticed changes in a business' policies / contract - and are at least willing to accept termination of those services if it comes to that - is to immediately respond to a notice of changes with a certified letter that says something to the effect: I do not accept these changes to your policies / our contract. In light of my having noticed you that I do not accept them, I will interpret your continued extension of service to me as acceptance by you of the original policies and contract terms with regard to my service. If you do not accept those original policies and terms, please terminate my service.

That may or may not work in court.

This is one reason why, in my view, it might not be advisable to give companies the recurring right to charge your credit cards or debit your accounts (e.g. through an auto pay system). If you do, and they decide to charge you a fee (e.g. an early termination fee), then, for practical purposes, the burden is on you to demonstrate that it isn't appropriate. You'd have to sue them or convince your bank / credit card company that the charge / debit was inappropriate. If all they can do is bill you for the fee and ask you to pay it, then it is they that would have to sue to collect. Generally speaking, I do not give companies the recurring right to charge my credit cards or debit my accounts unless they are giving me something in return (e.g. a discount on monthly service fees or some other perk).
 
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