Vodafone now charging extra to pay bill online

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3 posts

Wannabe Geek

#1023864 12-Apr-2014 10:32

I cannot understand a so called "Convenience Fee" suddenly being taken out on my credit card for paying my account. It puts a dampener on my relationship with any company who do this and especially when Vodafone didn't even have the courtesy to inform me of the xtra charges. I told them they are in effect stealing my personal money and helping themselves to my personal accounts. How the human mind is hell bent on making up excuses to get more and more off us without trying to absorb the costs into an on account plan or similar add to some product so as not to upset its customers. A company I worked for many years ago did it this way. Added extra eg= 2% onto its product so no one ever knew about the xtra of paying it this latest way. It just upsets me the way they are trying to control peoples lives. In the end the very people who work at Vodafone may move onto another job and then they will pay for their mistakes and added fees on another job. One just cant win.

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chewster

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#1023900 12-Apr-2014 11:55

CatchingUp: I cannot understand a so called "Convenience Fee" suddenly being taken out on my credit card for paying my account. It puts a dampener on my relationship with any company who do this and especially when Vodafone didn't even have the courtesy to inform me of the xtra charges. I told them they are in effect stealing my personal money and helping themselves to my personal accounts. How the human mind is hell bent on making up excuses to get more and more off us without trying to absorb the costs into an on account plan or similar add to some product so as not to upset its customers. A company I worked for many years ago did it this way. Added extra eg= 2% onto its product so no one ever knew about the xtra of paying it this latest way. It just upsets me the way they are trying to control peoples lives. In the end the very people who work at Vodafone may move onto another job and then they will pay for their mistakes and added fees on another job. One just cant win.

Hey CatchingUp, apologies for the charges seeming like they have crept up on you there. Vodafone has actually put some effort into getting this info out there. This is all been discussed earlier in thread, but I'll put some more info here as well.

Charges were informed on previous invoices (1st page usually approx 1/8 of A4 page advertisement) and prior to introduction. Since introduction on 03-MAR-2014 all payment channels now advise you of 2% one-off credit card fee prior to processing payment.

Before charge was introduced, this is an invoice from 17th February 2014:

Vodafone Invoice 17 February 2014 showing 2% convenience fee

When logged into My Vodafone account from desktop:

Vodafone My Vodafone Credit Card payment screen

Without logging in this is basically what you see through Vodafone Facebook page topup screen or on vodafone.co.nz/topup

What you see through the My Vodafone app (similar screen on Android):

My Vodafone app Credit card payment screen

Here is an audio snip you get played before processing a phone payment through 777 or 0800800021:
http://www.fileswap.com/dl/mFYapSkdBD/

As johnr said earlier, you can make a bank direct credit easy as (online banking?) a one off payment with no additional fees. Or at a Postshop is still free. Making payments by automatic Debit/Credit Card is actually still free. Direct Debits are free. So lots of alternatives out there. See http://www.vodafone.co.nz/paybill for more info on ways to pay your mobile bill.

Some more FAQ on the 2% convenience fee here from our help pages:
http://help.vodafone.co.nz/app/topics/kw/convenience/search/1

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Geektastic

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#1023921 12-Apr-2014 13:06

I still don't really see why one kind of card transaction warrants a fee and the other kind does not, when presumably both incur it from the bank.

richms

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#1023934 12-Apr-2014 13:45

Because a customer that automatically pays is a better customer than one that pays irregularly so they will absorb the costs

Richard rich.ms

sidders80

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#1023960 12-Apr-2014 13:54

richms: Because a customer that automatically pays is a better customer than one that pays irregularly so they will absorb the costs

How do you define an irregular customer? Someone who pays before or by the due date can't be considered irregular regardless of the means they use to pay the invoice.

Sid

Geektastic

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#1023975 12-Apr-2014 14:08

sidders80:
richms: Because a customer that automatically pays is a better customer than one that pays irregularly so they will absorb the costs

How do you define an irregular customer? Someone who pays before or by the due date can't be considered irregular regardless of the means they use to pay the invoice.

And they'd get the new 'late fee' introduced last year for not being on time in addition to the credit card fee....!

mattbush

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#1024052 12-Apr-2014 16:54

Geektastic:
sidders80:
richms: Because a customer that automatically pays is a better customer than one that pays irregularly so they will absorb the costs

How do you define an irregular customer? Someone who pays before or by the due date can't be considered irregular regardless of the means they use to pay the invoice.

And they'd get the new 'late fee' introduced last year for not being on time in addition to the credit card fee....!

Its simply profiteering.

If it was an attempt to increase efficiency they would instead offer an ontime discount and/or paperless billing etc like Contact Energy and others do.

It is all extra revenue that is already included in Company Overheads.

mattwnz

19996 posts

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#1024085 12-Apr-2014 18:17

mattbush:
Geektastic:
sidders80:
richms: Because a customer that automatically pays is a better customer than one that pays irregularly so they will absorb the costs

How do you define an irregular customer? Someone who pays before or by the due date can't be considered irregular regardless of the means they use to pay the invoice.

And they'd get the new 'late fee' introduced last year for not being on time in addition to the credit card fee....!

Its simply profiteering.

If it was an attempt to increase efficiency they would instead offer an ontime discount and/or paperless billing etc like Contact Energy and others do.

It is all extra revenue that is already included in Company Overheads.

I think it is more of an indirect way of putting up fees, in a more competitive environment, without putting up the base price of the product. So it becomes userpays if you chose to use that payment method. So when people come to comparing mobile providers and plans, they now need to factor in whether that provider charges CC fees or not, and on what plans.

CatchingUp

3 posts

Wannabe Geek

#1024255 13-Apr-2014 07:47

KieranReid:
CatchingUp: I cannot understand a so called "Convenience Fee" suddenly being taken out on my credit card for paying my account. It puts a dampener on my relationship with any company who do this and especially when Vodafone didn't even have the courtesy to inform me of the xtra charges. I told them they are in effect stealing my personal money and helping themselves to my personal accounts. How the human mind is hell bent on making up excuses to get more and more off us without trying to absorb the costs into an on account plan or similar add to some product so as not to upset its customers. A company I worked for many years ago did it this way. Added extra eg= 2% onto its product so no one ever knew about the xtra of paying it this latest way. It just upsets me the way they are trying to control peoples lives. In the end the very people who work at Vodafone may move onto another job and then they will pay for their mistakes and added fees on another job. One just cant win.

Hey CatchingUp, apologies for the charges seeming like they have crept up on you there. Vodafone has actually put some effort into getting this info out there. This is all been discussed earlier in thread, but I'll put some more info here as well.

Charges were informed on previous invoices (1st page usually approx 1/8 of A4 page advertisement) and prior to introduction. Since introduction on 03-MAR-2014 all payment channels now advise you of 2% one-off credit card fee prior to processing payment.

Before charge was introduced, this is an invoice from 17th February 2014:

When logged into My Vodafone account from desktop:

Without logging in this is basically what you see through Vodafone Facebook page topup screen or on vodafone.co.nz/topup

What you see through the My Vodafone app (similar screen on Android):

Here is an audio snip you get played before processing a phone payment through 777 or 0800800021:
http://www.fileswap.com/dl/mFYapSkdBD/

As johnr said earlier, you can make a bank direct credit easy as (online banking?) a one off payment with no additional fees. Or at a Postshop is still free. Making payments by automatic Debit/Credit Card is actually still free. Direct Debits are free. So lots of alternatives out there. See http://www.vodafone.co.nz/paybill for more info on ways to pay your mobile bill.

Some more FAQ on the 2% convenience fee here from our help pages:
http://help.vodafone.co.nz/app/topics/kw/convenience/search/1

CatchingUp

3 posts

Wannabe Geek

#1024257 13-Apr-2014 07:54

Keiran, the only reason I don't like Direct Credit is that with an automated system falling on a weekend (non business day} I may be landed with a late payment fee, I am afraid I just don't trust the system at times. Ive had this problem in the past. Also losing my independence choosing how and whom I pay. This is turning into a Dictatorship really when others are telling you how to manage your life. This is still a so called free country I suppose still. :-)

chewster

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#1024328 13-Apr-2014 12:33

The way the system is setup, there is leeway for delayed bank direct debit processing. So that shouldn't be an issue. You're not forced to pay by credit/debit card and the 2% fee is not incurred on all payment methods. Multiple alternative choices as above.

If my post helped you, consider my referrals (: Sharesies $5 referral code, Skinny 4GB buddy code, Contact Energy $100 promo code

mattwnz

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Uber Geek

#1024384 13-Apr-2014 14:49

The problem I see with ISPs adding on surcharges, is that once one starts doing it, then others follow, and use the other ISPs as justification for adding the new fee, by saying 'our major competitors have been charging this for some time'. This in turn implies that the customers of those other ISPs are happy with that new fee and justifiable. I noticed in another ISPs recent newsletter, one of their justifications for a new paper bill charge, was that other ISPs have been doing it for some time. So it does create a precedent , and perhaps a slippery slope. But customers are under full control to vote with their feet if they aren't happy.

Andib

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#1024388 13-Apr-2014 14:55

mattbush:

Its simply profiteering.

If it was an attempt to increase efficiency they would instead offer an on time discount and/or paperless billing etc like Contact Energy and others do.

It is all extra revenue that is already included in Company Overheads.

OnTime discounts are exactly the same as a late payment fee, They're just a nicer way of having a late payment fee.

On time Payment Discount- Your bill is $xyz due on the 10th, if you pay after this your bill goes up a percentage as a penalty.

Late Payment Fees - Your bill is $xyz due on the 10th, If you pay after this your bill goes up a set amount as a penalty.

Both bills require you to pay by the set date to get the cheaper rate, Pay after this date you occur a higher fee

drajk

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#1024402 13-Apr-2014 15:31

Andib:
mattbush:

Its simply profiteering.

If it was an attempt to increase efficiency they would instead offer an on time discount and/or paperless billing etc like Contact Energy and others do.

It is all extra revenue that is already included in Company Overheads.

OnTime discounts are exactly the same as a late payment fee, They're just a nicer way of having a late payment fee.

On time Payment Discount- Your bill is $xyz due on the 10th, if you pay after this your bill goes up a percentage as a penalty.

Late Payment Fees - Your bill is $xyz due on the 10th, If you pay after this your bill goes up a set amount as a penalty.

Both bills require you to pay by the set date to get the cheaper rate, Pay after this date you occur a higher fee

Its quite cute to see various VF employees trying to defend the new fees.

FACTS are:
(1) If the fee is cost recovery then it should apply to all credit card payments not only one-off
(2) If the concern is that non-automated credit card payers are unreliable this is addressed by the late payment fee - how would these customers be less reliable with respect to on-time payment compared to a person who pays by going to the post office. If they become sick etc surely they are far more likely to not pay on time vs someone who pays via internet. Irrespective of this a $10 late payment fee is 2% of $500 and so at $10 the late payment fee is more than 2% of most current consumer accounts and certainly should be a large enough disincentive that will avoid late payment.

In my opinion this is just another way for the company to charge more but at the same time seem competitive with respect to 'product' pricing.

It is also probably an advantage to have customers pay by direct debit as incorrect charges are then less likley to be noticed or questioned. In fact price increases will also perhaps be less obvious.

Of course it is probably only a matter of time before they also add a surcharge for automated card payments with the justification that "it is important that we treat all customers fairly"

Demeter

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One NZ

#1024411 13-Apr-2014 15:45

drajk: Its quite cute to see various VF employees trying to defend the new fees.

FACTS are:
(1) If the fee is cost recovery then it should apply to all credit card payments not only one-off
(2) If the concern is that non-automated credit card payers are unreliable this is addressed by the late payment fee - how would these customers be less reliable with respect to on-time payment compared to a person who pays by going to the post office. If they become sick etc surely they are far more likely to not pay on time vs someone who pays via internet. Irrespective of this a $10 late payment fee is 2% of $500 and so at $10 the late payment fee is more than 2% of most current consumer accounts and certainly should be a large enough disincentive that will avoid late payment.

In my opinion this is just another way for the company to charge more but at the same time seem competitive with respect to 'product' pricing.

It is also probably an advantage to have customers pay by direct debit as incorrect charges are then less likley to be noticed or questioned. In fact price increases will also perhaps be less obvious.

Of course it is probably only a matter of time before they also add a surcharge for automated card payments with the justification that "it is important that we treat all customers fairly"

We're not so much defending it as we are explaining why it exists. We are Vodafone customers ourselves, subject to the same rules and fees. As another example, my electricity provider has a built-in late payment fee they choose to 'discount' if I pay before the due date. It's silly pretending a 'discount' is anything other than a late payment fee, avoided.

We have options to avoid the fee as pointed out many times already. I'm sorry that people feel they're being duped, but at this point I can't help feel that people who are paying the convenience fee are in fact simply choosing to do so.

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