Verizon Implementing $30 Upgrade Fee Starting April 22

[Vatothe0]

Verizon is also fighting (if that's the right word for it) a sudden burst of "disloyal" customers. Customers who at the end of their contract, switch to another carrier rather than re-new.

This doesn't help since it costs as much to renew as it does to switch; new account fee is about equal to renewal fee (activation fee ~= upgrade fee).

Verizon is attempting to figure out ways of stopping this upward trend of customers leaving, but seems totally clueless that this fee doesn't help.

A sudden burst? Where would you get that idea??? Creeping up over the last year I guess but that's about it.

1Q 2012 retail postpaid churn of 0.96 percent
4Q 2011 retail postpaid churn of 0.94 percent
Q3 2011 retail postpaid churn of 0.94 percent
Q2 2011 retail postpaid churn of 0.89 percent, the lowest in three years.
Q1 2011 retail postpaid churn of 1.01 percent

[Paradyne]

When Verizon tried to implement the $2 fee for paying your bill, I switch from using a debit card to using a credit card with cash-back rewards.
I now earn $2.50 a month in rewards for simply paying my bill. VZW should learn that there are repercussions for being greedy.

Off topic: if anyone is slightly annoyed by the childish moving mouse pointer above....its easily removed with Ad Block Plus

[kupe]

Verizon is also fighting (if that's the right word for it) a sudden burst of "disloyal" customers. Customers who at the end of their contract, switch to another carrier rather than re-new.

This doesn't help since it costs as much to renew as it does to switch; new account fee is about equal to renewal fee (activation fee ~= upgrade fee).

Verizon is attempting to figure out ways of stopping this upward trend of customers leaving, but seems totally clueless that this fee doesn't help.

The term you're looking for is "churn" and Verizon has maintained the lowest churn in the industry for close to a decade now. What is this "sudden burst" of which you speak?

[veriztd]

I now earn $2.50 a month in rewards for simply paying my bill. VZW should learn that there are repercussions for being greedy.

And why would Verizon care which method you pay your bill? They still get paid the full account balance either way. The issue is that there are higher transaction fees to process a debit card vs. a auto debit credit card payment.

[Paradyne]

And why would Verizon care which method you pay your bill? They still get paid the full account balance either way. The issue is that there are higher transaction fees to process a debit card vs. a auto debit credit card payment.

Verizon cares because they pay a interchange fee of around 1% for debit cards and 3% for credit cards.
Having your account on auto-pay doesn't change the exchange fees.

Verizon's preferred method is to take the payment straight out of your checking account which incurs no fees.

[AlexKidd1977]

Verizon's preferred method is to take the payment straight out of your checking account which incurs no fees.

Actually, there definitely could be fees.

All payment processors may not be the same though, so I'm only speaking generally from first hand experience building billing systems for customers of mine who accept these forms of payments using a relatively small number of processors. All processors I've dealt with so far have charged ACH (Checking account) transactions on a per-transaction basis rather than percentage like debit & credit cards.

Based on that knowledge, ACH (Checking account) auto-pay is the most inexpensive way to get the money from Verizon's perspective. Auto-billed debit & credit card behind that. The most expensive are the hand authorized debit & credit card transactions since authorization for recurring payments is not pre-authorized.

--Kidd

[WaltA]

A sudden burst? Where would you get that idea???

CNN ran a story about a week or so ago, and interviewed VZW for it.

[Extraordinary]

When Verizon tried to implement the $2 fee for paying your bill, I switch from using a debit card to using a credit card with cash-back rewards.
I now earn $2.50 a month in rewards for simply paying my bill. VZW should learn that there are repercussions for being greedy.

Off topic: if anyone is slightly annoyed by the childish moving mouse pointer above....its easily removed with Ad Block Plus

Was using my debit card as well but now I put it on credit, might as well collect those rewards.

Oh, and I also turned on the free paper billing, which has been off on all my accounts since 2007.

[kupe]

CNN ran a story about a week or so ago, and interviewed VZW for it.

Meaningless comment without a link. There are ample counters to your unsubstantiated claim like Verizon Earnings Report in April 2012:

Retail postpaid churn was 0.96 percent, an improvement of 5 basis points year over year. Total retail churn was 1.24 percent, an improvement of 9 basis points year over year.

[Steveanderson13]

Meaningless comment without a link.

Not only that, Google can't even find any such article. I bet Bing could do it, lol.

[Steveanderson13]

Oh, and I also turned on the free paper billing, which has been off on all my accounts since 2007.

That'll show them--and as everyone says, AHA! You're the reason I'm getting throttled, lol.

Btw, VZW did not offer to waive it yesterday for me. CS by phone. Well, actually they declined. But I'll see what happens in a store sometime in the future.

[Steveanderson13]

Based on that knowledge, ACH (Checking account) auto-pay is the most inexpensive way to get the money from Verizon's perspective. Auto-billed debit & credit card behind that. The most expensive are the hand authorized debit & credit card transactions since authorization for recurring payments is not pre-authorized.

Right, checks used to be charged 10¢. On a $100 pmt, that's .10% or apx 90% less than debit cards and up to 300% less than credit cards. Use that plastic! and get someone else to pay (merchants) who have to turn around and charge more so we can ***** for our own actions. The model of efficiency! Get a third party involved (banks)! Wonder if Occupy Wall Streeters would give up their plastic? :rant:

[Eternal 28]

I hope my employee discount waives this fee. I know it waves the activation fee, don't know about upgrade fee though.

[johnhere]

I know someone who upgraded recently and they didn't know about the upgraded to a smart phone and the store never mentioned it. They found out when the total rang up and tried to get it waived but no luck so it appears it's going to be super hard to get it waived at this point.

[WaltA]

Not only that, Google can't even find any such article.

I just did Goggle, and it not only found the article, but it was the very first one on the list.

Do you really need a remedial course in how to use Google?