what's up with T-mobile removing autopay discount for credit cards?

“ It is because credit card companies charge a service charge that is based on the percentage of every transaction”

I dislike the way this is stated because its comes off as anti-bank and pro-Tmobile, or like this is something new that got sprung on Tmobile.

Transaction Fees ALWAYS exist, are not anything new, the % is between 1 to 4%, typically. For a giant company like Tmobile with their volume of customers and transactions, their transactions fees will be on the lower side of the average, not more.

its very simple:  Some data analyst at Tmobile pulled a report of how many users pay Autopay via credit card, they calculated the total merchant fees paid and then compared to the discounts offered and some exec somewhere didnt like the math.  "We gave them $5 y had to pay $1 to the bank...”

If they are good at analysis, they would forecast the inevitable increase in aging AR due to people dropping out of auto-pay and/or loss of subscribers.  That also means the money they make from not paying fees offsets whatever hit they take to their AR or customer loss.   So in the end, Tmobile is really saying the # of people paying auto-pay with a CC is enough to save a few bucks on fees, but not impactful enough where the increase in AR and loss of customers will be felt.

I mean, that's assuming they were thorough.  But unfortunately, they may be predicting right.  After the initial wave of anger and people dropping in and out subsides, that line graph will just continue with barely a blip.  The other reality is they can always just raise price anytime, so they could give us back the $5 while increasing the plan price by $5.  There's no way to beat Tmobile at this game other than to just leave.

Ok I just here to see when this was announced bc I rec'd the text message. I'll be switching carriers soon.

A question for T-Mobile: Does T-Mobile consider the Bluebird Debit card an eligible payment method for the Autopay discount?

Tip: if you are going to pay with a debit MC or VISA check with your bank if you have an option to turn access to the card on and off. Turn the card on the day before tmobile sucks money out of your account and turn it off as soon as they grabbed your payment. 

PITA having to do that every month but it's one way to keep your per line discount. 

Oh! You do know debit card transactions also charge transaction fees? Next you know we'll have to pay our bill at a local tmobile store. In cash. 

I don't buy it. A business as large as tmobile whining about cc fees while the mom and pop sub shop I went to yesterday takes all credit cards available and manages to not play the "Woe is me" card.

You mean to tell me tmobile hasn't struck discounted processing fee deals with card processors? As someone who worked in the banking industry, like I said, I don't buy it. 

cloh76 wrote:

I just got the message too.  It's stupid.  Especially since I use Apple Pay which gives me the additional 3% cashback on top of the $20 discount

This 3% doesn't come out of thin air.  It is passed on to the vendor.  I suspect that's the entire reason for this change.  I too would prefer to use my credit card for the points, but I get why there would be some pushback regarding the processing fees.

I first thought the text message I received might be a phishing attempt.  So, I logged in to my T-Mo account and it's interesting that I saw *no* mention of this even when viewing my current Auto Pay settings.  With a bit of news search (and stumbling upon *this* forum) I found it to be legitimate.

Hah!  It seems there might be another reason to push us off of credit card autopay….

(received via FaceBook Messenger)

"I understand not want to provide us with your direct checking account information, but luckily enough, we have an alternate method called the T-Mobile MONEY which is an FDIC-insured, high interest and mobile-first checking account that pays everyone a 2.5% Annual Percentage Yield (APY) on all balances. Find out more about it with this link https://www.t-mobile.com/support/plans-features/t-mobile-money?cmpid=hw_send. I recommend this method in order to keep your bank account under the radar. Let me know how this sounds to you and if you have any questions for me."

I'll still be paying with a credit card.

LB7557 wrote:

Add the fact that TMobile is notorius for data breaches. At least you have protection using your credit card, none using your bank account. Just a matter of time before someone gets their checking account wiped out. This business decision sucks.

Add the fact that TMobile is notorius for data breaches. At least you have protection using your credit card, none using your bank account. Just a matter of time before someone gets their checking account wiped out. This business decision sucks.

Rickajho wrote:

cloh76 wrote:

I just got the message too.  It's stupid.  Especially since I use Apple Pay which gives me the additional 3% cashback on top of the $20 discount

And the credit card I pay with has phone insurance covering theft and accidental damage. As long as I pay the bill with it...

Tmobile best rethink this decision. 

I'm in the same boat as you but my Tmobile plan pays my taxes. I don't think many other carriers do that.