New 1% Surcharge

[pmg21]

I've just received my lastest Optus mobile phone bill. After moving all systems to encourage customers to pay by credit and debit card I was a little shocked to see that they are now introducing a 1% service charge for people who pay by credit or debit card.
This means that in order to avoid paying service fees I'll have to go back to paying by cash in the store. A massive inconvenience.

I'm really annoyed that after encouraging everyone to move to this method of payment they start ramping up the fees ... when it's not as if they don't already charge enough.

[tdierikx]

I must say that I was a little miffed at that one too...

I don't do direct debit, but I do pay by credit card. I also have paper bills sent to me every month, and that incurs a $2.00 (plus GST) surcharge as well... grrr!

T.

[computerflyer]

folks,

So is this sufficient to cause you to look for another carrier? Perhaps that your contract is not over is keeping you with them?

IMO, if you are not voting with your feet, it is not as big a problem to you as you imply. Is it good business? For them probably, but it is ridiculous what business gets away with across the entire spectrum. Competition is Australia? Mainly a sick joke, hype, and no substance IMHO.

[marky00069]

you obviously have access to the internet, so why not use internet banking?? BPAY to them- quick and effective (plus the added bonus is that we won't see you on here complaining that you were mugged of your cash on the way to pay the phone bill).

[tdierikx]

I DO use internet banking to BPAY my bills - but I use my credit card account because it's more convenient for me to do it that way.

I don't have a problem with the surcharge for my paper bills either.

I'm definitely NOT about to switch from Optus for my various communications needs, because they cover my needs adequately for the money that I'm paying them.

I understand that the credit card companies do charge the merchants a processing fee - but companies the size of Optus are going to be getting a much better rate than the standard 1.5% to 3% that the credit companies charge. Passing on a charge that is most likely to be less than the 1% is a bit rough IMHO.

T.

[marky00069]

Td, you mention convenience. That convenience comes at a cost- in this case 1%.

As for the merchant fees, the business I work in gets charged a little more than 0.60% for credit card transactions (and we are only slightly smaller than Optus etc- we have 3 employees).

Maybe I should get our Bank Manager to ring them and see if he can get them a better deal....

BTW- isn't it illegal to charge more that what you are being charged?

[lightwood]

"BTW- isn't it illegal to charge more that what you are being charged?"



no but u must state that u are charging above the rate charged to u

[marky00069]

lightwood, this is from the ACCC website

"How much should the credit card fee be?
The Reserve Bank’s reforms allow the merchant’s bank (i.e. the provider of the merchant’s credit card 'swipe machine' facility) to restrict their merchants from charging a fee that is greater than the merchant service fee."

So it is in the reforms ,but not being put into practice.

And certain industries eg Taxis, are exempt from these rules.

[tdierikx]

Seeing as I pay my bills via BPAY over the internet (from my credit card account), it will be interesting to see if I actually incur the 1% fee that Optus will be charging...

I'm also not the original poster here - I was just agreeing with some of their comments is all.

I'm happy enough with the service that I get from Optus for the various services I have with them. I have never had a problem with their customer service staff - the wait time may be a little steep during peak times, but I know that I won't get hung up on... *grin* - I have had very little disruption to any service over the past 8 years I've had cable internet and cable tv... why the hell would I go with some other carrier just because they might be "cheaper"??

T.

[Cas98]

I use BPay for almost everything. Easier, more convienent and you get a receipt kept on your file in case the company says they did not get the payment.

I do have a credit card now, but BPay everything anyway. Credit card is ONLY used in person at a shop, NEVER over the 'Net.

[kiwi2768]

"BTW- isn't it illegal to charge more that what you are being charged?"

no but u must state that u are charging above the rate charged to u

This should apply to bank charges when you use another bank's ATM.

[pmg21]

I don't think I'll be switching companies at this point ... they all seem to be equally bad at charging for services that aren't worth charging for.

I guess I'm more annoyed about the fact that we are urged to not use cash, then we are charged for the priviledge.

I also B-Pay my bill with my credit card so I'll be interested to see if I get charged for that.

[julslovesjesus]

Reminds me of when the banks wanted us to use ATMs instead of branches - they got us all trained to use them, pushed them and EFTPOS mericlessly, promising no charges, then once we were all used to it, started whacking up the charges and setting transaction limits.
Irks me no end.

[Krystal]

Similiar story with internet banking...encourage customers to take it up coz it's 'free'. Then come the charges once they have enough in the system to generate a handy little profit. Many companies seem to do it lately.

With regard to the surcharge, I think it's plain wrong to charge extra to pay your bill, by whatever means.

[jeffy83]

Optus are simply passing on the fee applied by the merchant bank when C/C are used. They have absorbed the cost for over 10 years now. But for them continue the fight against Telstra, they must cover some of their more basic costs. $2.20 was mentioned, it covers administration costs of paper bill, toner, mail, aus post fees etc plus the payment processing fees. (Example: 55c is charged for each Aus Post payment - I pay $2.20 for AusPost when I pay my GE Car repayment)..

Tideiex - BPAY CC payments do not incur the 1% fee as its not processed by Optus, they would receive it as a BPAY Payment. Your bank would be charged the merchant fee for you using your credit card.

You can all avoid the 1% and the $2.20 by simply allowing Optus to deduct it from your bank account.