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No sooner than Verizon (VZ) says it had fixed the latest outage of its high-speed data network,...

No sooner than Verizon (VZ) says it had fixed the latest outage of its high-speed data network, it irks customers further with news it will start charging a $2 "convenience fee" for every payment made over the phone or online with their credit cards. The company says the move is necessary to help pay for "single-bill payment options." Perhaps it should have consulted Brian Moynihan first.
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Comments (38)
  • zen master
    , contributor
    Comments (71) | Send Message
     
    switch to T. i am a shareholder of ma bell
    29 Dec 2011, 05:42 PM Reply Like
  • wyostocks
    , contributor
    Comments (8852) | Send Message
     
    Quick, call Barnie Frank and Sen. Durban and get a law passed to stop this now.
    29 Dec 2011, 05:44 PM Reply Like
  • Tricky
    , contributor
    Comments (1690) | Send Message
     
    Oh, I think the market response is going to get the job done just fine.
    29 Dec 2011, 05:56 PM Reply Like
  • bkpark
    , contributor
    Comments (325) | Send Message
     
    But the market can't be trusted. Surely the government must do something. Maybe they should block Verizon's next merger preemptively. There's no evil in the world that can't be fixed by more government intervention---not even prior government interventions.
    29 Dec 2011, 06:01 PM Reply Like
  • Zugadore
    , contributor
    Comments (3) | Send Message
     
    Relax, sport. We're all agreed they pulled a Bank of America and they'll regret it shortly.
    29 Dec 2011, 10:38 PM Reply Like
  • noob
    , contributor
    Comments (393) | Send Message
     
    We really need a <sarcasm> tag on the internet... Maybe we can ask Congress for that.
    30 Dec 2011, 07:20 AM Reply Like
  • kwm3
    , contributor
    Comments (2443) | Send Message
     
    what? the market has done a fantastic job of regulating, for example: BAC, C, GS, MS and JPM--great job market! you should be extolled as the ultimate panacea of enlightened thought, the pinnacle of virtue!!
    30 Dec 2011, 08:28 AM Reply Like
  • moneyTalksBSWalks
    , contributor
    Comments (193) | Send Message
     
    Good one but VZ has probably bought them off. Odds are that we're not going to hear any kind of squeaking from these paid off mofos.
    30 Dec 2011, 11:56 AM Reply Like
  • Matthew Davis
    , contributor
    Comments (4558) | Send Message
     
    Or a Netflix :)
    30 Dec 2011, 01:49 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    This should create some back wash.
    29 Dec 2011, 05:46 PM Reply Like
  • wyostocks
    , contributor
    Comments (8852) | Send Message
     
    Pay by auto charge monthly to a credit card, no fee, no hassle and you get points or discover rebate of 1%.
    29 Dec 2011, 06:34 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    Never, never give a vendor your credit card for payments. They will never stop charging you when you move to another vendor. It will be a dispute that affects your credit rating before you get it fixed.
    29 Dec 2011, 09:19 PM Reply Like
  • bkpark
    , contributor
    Comments (325) | Send Message
     
    Er, unless you insist on paying everything by cash only (no check, no ATM debit card), credit card is the *safest* way to pay for anything.

     

    If a vendor charges your account fraudulently, in most cases all you have to do is dispute the charge with your credit card company (you may have to somehow prove that charge was fraudulent if the vendor fights the disputed charge rather than taking the charge off and paying the fine to the credit card company) and they will do most of the work for you (and most credit card companies will let you block additional charges from a given vendor). And so long as you communicate well with the credit card company (i.e. dispute the charge by phone and/or writing, don't simply not pay it), these disputes won't show up on your credit report (how could it, since your account would be in good standing with no late payments?) and cannot possibly have an impact on your credit score (at least not as far as your credit card company is concerned; if the vendor is someone large like a utility company, they may be able to put something on your credit record ... which you will then have to dispute with credit agencies).

     

    On the other hand, if you pay by check, you have given a third party all the information they need (routing number and account number) to make a fraudulent withdrawal from your bank account, and if you pay by ATM debit card, when fraudulent charges are made you are pretty much on your own since the bank has nothing at stake (the cash in *your account*, not their own funds, have been withdrawn, legitimately or illegitimately).

     

    P.S. One possible exception regarding safety: your bank's bill pay might be somewhat safer; from what I understand, even when they send out a paper check from these bill pay services, they don't include confidential information like account number. But then, I guess here is where people weigh cashback rewards from their credit card against relative safety.
    29 Dec 2011, 10:22 PM Reply Like
  • noob
    , contributor
    Comments (393) | Send Message
     
    Cashback rewards are just a Transfer. You get 1% while all the prices paid are jacked up accordingly. There is no net gain.
    30 Dec 2011, 07:21 AM Reply Like
  • Lakeaffect
    , contributor
    Comments (1228) | Send Message
     
    Moose - That's Simply BS.
    30 Dec 2011, 09:19 AM Reply Like
  • bkpark
    , contributor
    Comments (325) | Send Message
     
    It's transfer from people who have no cashback rewards to people who have cashback reward; if a vendor accepts credit card, his price increase (yes, to pay for transaction fees which must be more than 1--2% on average, if the credit card company is going to make money) is for everyone, but not everyone has cashback reward cards---and I prefer to be one of those people on the receiving end of wealth transfers.

     

    (Also, for certain types of business, I prefer the cash-only places for precisely this reason; their prices tend to be lower. But if a business already accepts credit card, I'm not going to save anything by not paying with a credit card.)
    30 Dec 2011, 09:31 AM Reply Like
  • wyostocks
    , contributor
    Comments (8852) | Send Message
     
    noob
    You don't know what you are talking about. My grocery store, restaurant and gas station do not lower my bill if I offer to pay cash nor raise the bill when I use my discover card. Meanwhile, the 1% I get back is real cash.
    30 Dec 2011, 09:36 AM Reply Like
  • bkpark
    , contributor
    Comments (325) | Send Message
     
    BTW, *some* gas stations do (or at least used to). Some gas stations advertise what they call "cash price" and the pump is somehow programmed to handle it (i.e. the price goes up by about a percent or two when I pay with plastic rather than cash).

     

    I wasn't sure how that didn't run afoul of VISA and Mastercard rules (self-serving rules that dictated to merchants that they couldn't charge a fee for accepting credit card), but even at many of those places, the cashback reward often more than offset the price increase.
    30 Dec 2011, 10:02 AM Reply Like
  • wyostocks
    , contributor
    Comments (8852) | Send Message
     
    Moose
    Has not been my experience. Maybe I've just been lucky but have never had such a problem. Knock on wood.
    30 Dec 2011, 12:06 PM Reply Like
  • Ron Myers
    , contributor
    Comments (256) | Send Message
     
    4G is the biggest joke in history as 95% of customers will not see any benefit at all and the few heavy users that would want it will pay through the nose as soon as they exceed bandwidth limits that can easily be reached. Customers will take the $2 fee up the arse because they have to - after all they financed their three iphones in the past three years at 50% equivalent APR through their contract committment and now they're paying on their 25% APR credit card.
    29 Dec 2011, 05:52 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    You do realize that this fee is for automated payments which VZ does not have to even handle as they go directly into VZ's account at some money center bank. The way around the fee is to pay by check and that payment also goes directly to an automated lockbox account at yet another money center bank. You are in effect paying Moynihan's fee for VZ.
    29 Dec 2011, 06:04 PM Reply Like
  • D_Virginia
    , contributor
    Comments (2277) | Send Message
     
    > 4G is the biggest joke in history as 95% of customers will not see
    > any benefit at all and the few heavy users that would want it will
    > pay through the nose as soon as they exceed bandwidth limits
    > that can easily be reached.

     

    Incorrect, on all counts. Let's stick to the facts.

     

    1) 4G isn't about the amount of data, it's about the speed, which many users are falling in love with already -- particularly air card users or phone tethering users. I'm still on AT&T until late next year, but when I use someone else's Verizon 4G hotspot, my speeds are about 20Mbps -- almost as fast as my FiOS broadband at home.

     

    2) I'm not sure about AT&T's rollout status, but Verizon's 4G is already available in 190 cities, supposedly covering 200M people.

     

    3) Overage charges for data used to be astronomical, but they are very linear now. Yes, 4G lets you (but doesn't necessarily encourage you to) hit your cap faster, but at $10/GB, your costs are almost exactly proportional to your data usage.

     

    Data costs in general are high, in my opinion, but if you think a 5GB/mo plan for $50/mo is fair, then you can't complain about 6GB/mo for $60/mo.
    29 Dec 2011, 06:32 PM Reply Like
  • 1980XLS-2.0
    , contributor
    Comments (525) | Send Message
     
    I thougfht when I pay online, it saves me .42 cents, but saved them the cost of a paper transaction and we both benefit. I f they charge me a fee. I will send it snail-mail and stick it up their arse.

     

    I am refering online E-check however, withought a true "credit card" number involved.

     

    We shall see.
    29 Dec 2011, 06:04 PM Reply Like
  • aflitzy
    , contributor
    Comments (28) | Send Message
     
    I too pay online. Saves me the stamp and time and they do get their money immediately. Looks like I will be buying stamps.
    Plus, this will increase the processing time for V.
    I do not see how tis is cash flow positive for V unless a very high % of people are willing to pay the $2.
    30 Dec 2011, 11:10 AM Reply Like
  • moneyTalksBSWalks
    , contributor
    Comments (193) | Send Message
     
    Up VZ's arse is the way to go! Ahoy me matey's let's all switch to snail mail and drown VZ in a mountain of mail(and by the way as an added bonus support USPS which is in dire need of support). VZ will come to its senses soon enough.
    30 Dec 2011, 12:04 PM Reply Like
  • Spencer Knight
    , contributor
    Comments (416) | Send Message
     
    You think they would learn from the backlash when the banks stated they would charge a convenience fee... Oh well though; this gives me another reason to leave VZ.
    29 Dec 2011, 07:02 PM Reply Like
  • fishluvrain
    , contributor
    Comments (456) | Send Message
     
    The idea of charging a fee for accepting payment for services is truly ridiculous.
    29 Dec 2011, 07:10 PM Reply Like
  • mjs_28s
    , contributor
    Comments (1730) | Send Message
     
    I am a little torn here but I can see the reason for part of it.

     

    Anytime you swipe a credit / debit card Visa, MasterCard, AmEx, etc. gets a fee. With more people paying with credit cards VZ has been eating the fee 2 to 6% I believe depending on which card you use. Maybe this is VZ making those that tend to pay on the phone (taking time and resources and possibly a credit card transaction fee) or an autopay credit card payment which also creates a transaction fee.

     

    To me it seems fair, at first I was mad, but upon reflection it is fair. I mean they could just hide the fee by raising all the customer's rates but this is a very competitive space and with strong marketing involved from competition you do not want to give them ammo to say that you raised your rates across the board.
    29 Dec 2011, 07:27 PM Reply Like
  • Deja Vu
    , contributor
    Comments (1602) | Send Message
     
    Another clueless management from the University of Airlines And Netflix. What they should have done it raised thier monthly charges for all plans by $2. A couple of months later they should have offered a rebate of $ 2 for anyone paying by their preferred method.
    29 Dec 2011, 08:14 PM Reply Like
  • Bear Bait
    , contributor
    Comments (698) | Send Message
     
    As for 4g and speed vs bandwidth. Yep it's fast great for movies; BUT, and that's a big but. When I checked locally on Verizon MyFi, it was 50 bucks a month for the cheap plan. The salesman told me if I connected more than about 3 computers to it or stream more than 5 movies a month I would exceed the plan limits. Sometimes I stream that many + a week. Makes my DSL with 2.7 mbs and unlimited streaming for about 16.90 look really good. Verizon is and shall remain the Wireless Nazis.
    29 Dec 2011, 09:00 PM Reply Like
  • johnmd20
    , contributor
    Comments (8) | Send Message
     
    Who cares? Set up automatic payment and there is no charge for using a credit card. This seems like not too big a deal to me.
    29 Dec 2011, 10:59 PM Reply Like
  • tjbjr34
    , contributor
    Comments (2) | Send Message
     
    Oh yes , let's get the Gov. involved and then it will be $4 bucks - when will we ever learn to quit asking the Gov. to solve our problems ? - pay by check , electronic transfer or switch - this is very complicated !!!
    29 Dec 2011, 11:00 PM Reply Like
  • mvojy
    , contributor
    Comments (4) | Send Message
     
    Conveniently sticking it to their customers. Looks like a similar move to Netflix and BOA that will soon be regretted.
    30 Dec 2011, 12:19 PM Reply Like
  • mvojy
    , contributor
    Comments (4) | Send Message
     
    I've never bothered to switch everything over to them because their advertised prices of say $80 for triple play isn't even close to what all of the add-ons and taxes that really add the bills up to close to what I'm paying now. And I don't need to rent a box for every single tv in the house with regular cable. Keep your Fios VZ.
    30 Dec 2011, 12:19 PM Reply Like
  • QC
    , contributor
    Comments (28) | Send Message
     
    The banks tried this fee crap and it did not work. Fight Verizon tooth and nail.
    30 Dec 2011, 02:54 PM Reply Like
  • 1980XLS-2.0
    , contributor
    Comments (525) | Send Message
     
    Newsflash,

     

    Verizon just caved.

     

    No Fee!
    30 Dec 2011, 03:18 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (4558) | Send Message
     
    shocker
    30 Dec 2011, 03:21 PM Reply Like
  • wyostocks
    , contributor
    Comments (8852) | Send Message
     
    Congress can stay on vacation now.
    30 Dec 2011, 03:35 PM Reply Like
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