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Verizon comes to its senses, gives up $2 "convenience fee"

Posted: , by Scott H.

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Verizon comes to its senses, gives up $2
One more present to be delivered before the end of the year for Verizon customers. Facing strong negative consumer reaction and the threat of a government investigation, Verizon just announced that they will forgo the "convenience fee" it announced earlier, where customers would have been charged an extra $2 to pay their bills in certain ways (including one-time online payments).

The entire statement is reproduced for you here:

Verizon Wireless Will Not Institute Single Payment Fee

December 30, 2011

Verizon Wireless has decided it will not institute the fee for online or telephone single payments that was announced earlier this week.

The company made the decision in response to customer feedback about the plan, which was designed to improve the efficiency of those transactions. The company continues to encourage customers to take advantage of the numerous simple and convenient payment methods it provides.

“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,” said Dan Mead, president and chief executive officer of Verizon Wireless.

So there you have it. You can continue to send Verizon your money, without having to pay them an extra $2 for the privledge. Verizon intends to try and encourage consumers to select payment methods that are "more efficient" for Verizon - and we can all agree that is a reasonable thing to do, so long as they are trying to make a good and fair case, rather than merely finding another revenue source.

source: Verizon via Engadget

33 Comments
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posted on 30 Dec 2011, 14:57 7

1. dsDoan (Posts: 213; Member since: 28 Dec 2011)


"You can continue to send Verizon your money, without having to pay them an extra $2 for the privledge."

Lawl.

posted on 30 Dec 2011, 14:58

2. idaman12000 (Posts: 39; Member since: 03 May 2011)


im glad this issue has been resolved

posted on 30 Dec 2011, 15:11 4

3. bolaG (Posts: 468; Member since: 15 Aug 2011)


At least they came to their senses. To have to pay, to pay someone, is insane. If anything they should motivated their customers with rewards.

Take U.S. Cellular for example. They offer their customers 3-5% discount for automatic paperless billing.

If VZW offered their customers discounts by paying in their "preferred" method than that would be a much better incentive that scaring them with an additional cost.

posted on 30 Dec 2011, 15:18 7

4. Droid_X_Doug (Posts: 5529; Member since: 22 Dec 2010)


Nothing like the possibility of an investigation by the FCC to make VZW come to their senses. But great spinning by VZW - we are customer-focused. If they were so customer-focused, they wouldn't have applied the $2 charge in the first place....

posted on 30 Dec 2011, 15:18 2

5. protozeloz (Posts: 5369; Member since: 16 Sep 2010)


Would this had to do with the rumors about companies having to make up in order to keep the 199 price tag on the iPhone? Just curious to hear what you may have to say?

posted on 30 Dec 2011, 15:34 2

10. Droid_X_Doug (Posts: 5529; Member since: 22 Dec 2010)


It could be. The problem with government investigations is that once they start, they tend to take on a life of their own, with one thing leading to another. The cost to VZW of putting a team of attorneys shadowing the FCC investigators along with the cost of having to respond to any findings the FCC investigators probably would have made, would far outweigh the added revenue from the $2 surcharge.

It was time for VZW to cut its losses. But great spinning of the decision.

posted on 30 Dec 2011, 22:16

28. roscuthiii (Posts: 1785; Member since: 18 Jul 2010)


Possibly that and I think also them just reimbursing themselves for their recent spectrum purchases and any legal fees being recouped due to regulator legal action.
Plus, I also think there's the possibility they just thought to themselves, "It's two dollars! Who's gonna notice two dollars?!"
Verizon Wireless has what, +/-100 million subscribers? If half paid in that method incurring the $2 fee that's $100 million extra revenue per month. Even if only a fifth of subscribers did this, they'd still rake in $500 million extra revenue per year. All for doing nothing.

posted on 31 Dec 2011, 09:39

29. atheisticemetic (Posts: 377; Member since: 18 Dec 2011)


it is quite possible Proto. It seems to me that companies are bleeding money in carrying the iphone; to an extent.

my company doesnt even pay me commission (in terms of data plan) for the iphone to make up their cost in the fact that we have to carry it! We cant offer instant rebates on their products.

The cheapest place to find ipods is Costco because they let them shave off a few bucks for buying in bulk. Costco has also admitted they dont make money them (they just draw in more members to buy them cheaper).

applefail? Verizonfail?

posted on 30 Dec 2011, 15:21 2

6. rjbp64 (Posts: 28; Member since: 15 Dec 2011)


Ya thats what we thought Verizon!!!! Unless you want some "Government Investigation" going on . That would really set you straight.

posted on 30 Dec 2011, 15:25 2

7. bossmt_2 (Posts: 429; Member since: 13 Oct 2009)


Knew this would happen. It's all about testing the water, piss off enough people and they won't do it. Hell most of their subscribers won't know about this in the end.

posted on 30 Dec 2011, 15:29 1

8. WirelessCon (Posts: 309; Member since: 11 May 2010)


"Announced earlier this week?" I thought the that info was leaked.

Verizon are bastards, but then again so is AT&T, and Sprint, and whatever will be left of T-Mobile USA by the end of next year.

posted on 30 Dec 2011, 15:41 1

11. protozeloz (Posts: 5369; Member since: 16 Sep 2010)


Both leaked and announced

posted on 30 Dec 2011, 20:35

24. email17070 (Posts: 5; Member since: 22 Dec 2011)


there will be MORE Tmobile then you 'wirelesscon' can imagine and comprehend, lol, especially 4 billion richer, LOL,

posted on 30 Dec 2011, 15:30 3

9. WirelessCon (Posts: 309; Member since: 11 May 2010)


Oh yeah, because AT&T couldn't buy T-Mobile there will be lower prices. First thing Verizon did was try to raise prices. Thanks, that duopoly busting is REALLY helping the consumer.

posted on 30 Dec 2011, 21:13

27. ILikeBubbles (Posts: 300; Member since: 17 Jan 2011)


no one said it would lower prices, it's just keeping them low. if at&t did get t-mo whats to keep at&t and Verizon from cutting a deal behind everyone's backs? im sure they'd find some way to sort of kind of price fix in a legal way and prices would rise from there.

posted on 30 Dec 2011, 16:41

12. jjnbbills12 (Posts: 18; Member since: 30 Dec 2011)


Some credit card companies charge for making a payment with a debit card so why the big deal. You could pay by check without any fees. I for one was hoping this would happen. I am getting tired of the financial system messing everything up. If they did not charge fees than it would have never crossed the minds of VZW who is the one that pays for it. I feel that if a person has to take your payment because you don't want to do it online or the IVR you should have to pay. If you call in for anything you can do yourself with a little effort then you should have to pay. If you don't understand how to use a computer or an IVR system please send your phone back. This does not include anyone that is not able to use a computer or IVR.

posted on 30 Dec 2011, 18:08 2

19. Whateverman (Posts: 3187; Member since: 17 May 2009)


That just it! The fee was for using the exact same self help options you are talking about and VZW encouraged customers to use all the time. No, it's time for all the nickle and diming BS to stop. Their profits are high enough already.

posted on 30 Dec 2011, 16:51

13. Mando0316 (Posts: 2; Member since: 28 Dec 2011)


"At Verizon we take great care to listen to our customers."

Really, then why isn't there much feedback regarding 4g outages? All I see is a statement saying that 4g may be out but voice and text still work. I'm sure there are plenty of concerns fielded to Verizon when there is a 4g outage but I see no response that shows they listen to calls for improvements. Listening to customers or avoiding government backlash?

posted on 30 Dec 2011, 17:13 2

14. Sniggly (Posts: 6695; Member since: 05 Dec 2009)


Consider the numbers involved. Even if only half of the customers Verizon has made a payment each month with one of the fee-required methods. 50 million people each paying 2 dollars would result in 100 million a month or 1.2 billion a year in extra revenue. Makes perfect business sense.

posted on 30 Dec 2011, 17:39

15. DROIDX0430 (Posts: 409; Member since: 24 Nov 2010)


Power to the people...greed is driving this chain..but so far....chase...wells fargo..bank of america...netflix...and now verizon just to name a few have all heard the customer.....good job!

posted on 30 Dec 2011, 17:48

16. CRICKETownz (Posts: 980; Member since: 24 Oct 2009)


what's the purpose of this? is this the electric company now? i'm not a fan of autopay for any service so to get penalized for opting to make a one-time payment...i don't understand.

posted on 30 Dec 2011, 17:51 1

17. InspectorGadget80 (Posts: 6126; Member since: 26 Mar 2011)


And you guys complain bout how bad AT&T is. Glad I'm not with Verizon with their over price 4G phones

posted on 30 Dec 2011, 18:01

18. letsb4real25 (Posts: 21; Member since: 28 Dec 2011)


Well personally, my HTC Rezound costed $.01 at amazonwireless.com. Bought two of them ;-)

posted on 30 Dec 2011, 18:16 1

21. Whateverman (Posts: 3187; Member since: 17 May 2009)


No, AT&T is still the worse. Vzw on it worst day is still 10 times the carrier att is. Hopfully im wrong and that has changed some, but their own customers keep rating them dead last...not a good sign. And I never buy phones directly from VZW or any other carrier. Amazon, Wirefly and many other retailers make it a no brainier to buy from them.

posted on 30 Dec 2011, 20:04

23. networkdood (Posts: 6247; Member since: 31 Mar 2010)


AT&T charges 5.00 to pay with a live person. 1cent deals from AMAZON rule the airwaves.

posted on 30 Dec 2011, 18:15 1

20. lubba (Posts: 1310; Member since: 17 Jan 2011)


over zealous, over confident. Just because they're the number one carrier that they can do anything they want. If anything, in sure they got reported to the FCC and didn't want to risk oversight of their business practice.

posted on 30 Dec 2011, 18:17

22. lubba (Posts: 1310; Member since: 17 Jan 2011)


So they retracted the $2 fee.

posted on 30 Dec 2011, 20:36

25. email17070 (Posts: 5; Member since: 22 Dec 2011)


Looks like verizon tried to pull a 'bank of america' $5 debit card fee, and look what happened to it,,, POOF!! GONE !! in a instant!

posted on 30 Dec 2011, 20:47

26. Joshing4fun (Posts: 1044; Member since: 13 Aug 2010)


Glad i left Verizon. Won't miss them. They couldn't care less about their customers.

posted on 31 Dec 2011, 12:49

31. networkdood (Posts: 6247; Member since: 31 Mar 2010)


You will find that none of these companies truly value their customers business. Just go with the best coverage/price/phones and do the best you can.

posted on 31 Dec 2011, 14:34

32. CRICKETownz (Posts: 980; Member since: 24 Oct 2009)


I wouldn't go that far b/c most customers' definitions of "value the customer" starts w/the word free & ends w/the word free. customers expect a business to perform at a high level w/a cheap tag which is unrealistic. reliability isn't cheap I guess...

posted on 31 Dec 2011, 12:48

30. networkdood (Posts: 6247; Member since: 31 Mar 2010)


Verizon will find other methods to exhort money from their customers - I do like their double the data deals, though.

posted on 31 Dec 2011, 15:43

33. thephoneguy92 (Posts: 191; Member since: 29 Dec 2011)


The way I see it, you can look at it two ways. On one hand, you can say Verizon is greedy for charging you an extra 2 dollars to pay your bills, and that would be a fine way to look at it. But on the other hand, and as others have pointed out, Verizon would get millions of dollars while an individual only had to pay $2 extra a month, and that charge is completely avoidable. Now if Verizon had that extra money, and chose to put it towards the network strength, I would gladly pay a measly $2 extra for an improved cell phone provider. While many people think it's the principle of the matter, I can sympathize with you, but at the same time, it could be for a good cause.

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