Verizon Wireless wants to charge you a fee for paying your bill.
Weren’t they watching when Bank of America received a thrashing from its customers for plans to charge a monthly $5 debit card fee? Apparently not. Verizon disclosed what it calls a “convenience fee” on Thursday and social media sites are lighting up with ticked off consumers who are already putting together boycotts.
It’s true that there are plenty of ways to avoid the $2 fee, which begins January 15th. But sticking something like this on consumers right now is like poking an already angry bear with a big sharp stick.
Plus, there could be some sneaky reasons for adding the fee.
UPDATE: Verizon quickly changed course just one day after announcing the planned fee. The decision to cancel the $2 charge also followed a pledge from the FCC to investigate the matter.
The fee applies only to one-time payments made online or over the phone with a credit card or debit card. In this case, “one-time payment” means the customer does not have automatic bill pay set up. That’s exactly what Verizon wants its customers to do. However it’s not the only way to avoid paying the $2 fee.
How to Avoid the $2 Verizon Wireless Fee
- Pay using personal checks and send it in the mail
- Use electronic checks online or over the phone
- Enroll in AutoPay
- Use your bank’s online bill pay service
- Pay with credit, debit, checks or cash at a Verizon store or kiosk
- Use a Verizon Wireless gift card
So there are plenty of ways to get out of paying the two bucks. But Bank of America had ways to avoid its debit card fee as well. In the midst of all the backlash, BofA even looked into giving customers extra options for working around the fee. However, the financial institution and other major banks all backed down from debit card fees in the end.
It seems that for many consumers – the outrage is over the principle of the idea that you’re being nickel and dimed for doing nothing more than paying your bill on time.
A post on the Time Techland blog notes some other reasons why this fee could cause problems for Verizon’s customers.
For one thing, writer Matt Peckham points out that signing up for automatic bill pay isn’t for everyone. Many people prefer to pay their bill when they want to. It’s often because money is tight, and they’re trying to manage their checking account.
An even more important issue is overcharging. I know I’ve had to call Verizon about discrepancies on a bill in the past, and Peckham thinks Verizon may see a more devious advantage to pushing customers toward AutoPay.
“If Verizon accidentally overcharges (because that never happens, right?) and you’re signed up for auto-pay, you’ll automatically pay the overcharge, and have to sort it out post facto.”
Verizon is defending the planned fee saying it’s needed to cover the costs of processing those one-time payments. Peckham questions whether it really costs Verizon $2 to process each phone or online transaction, but doubts the wireless provider would ever open its books to reveal that information.
I think it’s unlikely that there will be movements for a mass exodus from Verizon as there were with Bank Transfer Day and similar protests following the BofA debacle. However, maybe this time the power of the consumer will force Verizon to either prove that the $2 fee is merited, or call it off all together.
An article on Forbes.com suggests that the $2 fee frustration could prompt many wireless customers to take a closer look at all of the fees on their bills. And some might not like what they see.
Writer Erika Morphy says Verizon could very well be heading for what she called a “Bank of America moment,” and thinks the consumer outrage could help to expose a shady practice the FCC calls cramming.
“It is appallingly easy for them to slip a small fee among the myriad of charges, which the consumer either doesn’t see or thinks belongs there. Telecom companies haven’t exactly been perceived as helpful in helping consumers shed these fees either.”
If Verizon’s goal is truly to encourage more customers to start using AutoPay for their wireless bills, perhaps it would have been smarter to reward customers for switching instead of punishing them for doing what they’ve always been allowed to do for free. Other companies have offered incentives such as gift cards for changing the way they pay.
Hey Verizon…Can You Hear Us Now?
If you’re a Verizon Wireless customer, do you plan to make your voice heard over the fee? Does it bother you, or are you okay with the fact that it’s fairly easy to avoid the $2 “convenience” charge?
We’d also like to hear your predictions for how this scenario will play out. Some possible outcomes:
- Verizon backs down
- Verizon opens its books and proves the charge is needed
- Consumers just shut up and deal with it
- Outrage leads to an overhaul of how the wireless industry bills its customers
CONCLUSION – Turns out Option No. 1 was correct. And it took practically no time at all.
Verizon CEO Dan Mead had this to say in a statement:
“At Verizon, we take great care to listen to our customers. Based on their input, we believe the best path forward is to encourage customers to take advantage of the best and most efficient options, eliminating the need to institute the fee at this time.”
NEW QUESTION!
Are big corporations – now more than ever – fearing the wrath of consumers over the internet?
Leave a comment and join the conversation!
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Image: mikumistock / FreeDigitalPhotos.net
+Kasey Steinbrinck writes regularly on personal finances and consumer news for Check Advantage. Visit them today and view their big collection of Classic Checks for personal use and QuickBooks Checks for small business.
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