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

syaoran wrote:

That was announced months ago.  It is because credit card companies charge a service charge that is based on the percentage of every transaction, which eats into T-Mobile's revenue.  Removing the auto pay discount for credit cards negates that.  

magenta2738723 wrote:

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

sweetwillyd wrote:

This is simply a money grab plain and simple, I calculated the (maximum current) credit card fees on my monthly payment of $147.11. The (Maximum) T-Mobile could be charged on my Master Card is ($6.98). I have been with T-Mobil for 20 years and I'm switching. I refuse to give them my bank account information and think them very arrogant to think us all so foolish as to do so. The lack of integrity of simply adding the Credit Card fees to the transaction and thinking us foolish enough to think it's anywhere near their increase, insults my intelligence and that of any intelligent person.  Keep in mind my calculations are based on maximum fees which I can assure you, T-Mobile does not pay near the maximum, they are too big a customer.

fireguy_6364 wrote:

Caprece wrote:

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. 

 

The same! So even if I do accept this change and pay with my debit or bank account, I will STILL lose money. 

I have been with T-Mobile, essentially, since before they were T-Mobile (VoiceStream), and I have mostly enjoyed the perks of having their service. However, over the recent years, they have been steadily doing things that cause me to think about other carriers.

i recommend doing your research on those carriers then. for the bigs the only one allowing a discount for auto pay with a CC card is ATT..V doesnt do the CC card deal either..you must use their own CC card in order for this to happen. 

Yeah...I know, but it is just the principle of it all. Why can't it only be applied to new customers? Or be based on if you have had issues paying your bill and you lose the "privilege" that way? I've been with them too long and would appreciate a grandfather clause or something... 

fireguy_6364 wrote:

jlfliberty wrote:

syaoran wrote:

T

magenta2738723 wrote:

 

sweetwillyd wrote:

This is simply a money grab plain and simple, I calculated the (maximum current) credit card fees on my monthly payment of $147.11. The (Maximum) T-Mobile could be charged on my Master Card is ($6.98). I have been with T-Mobil for 20 years and I'm switching. I refuse to give them my bank account information and think them very arrogant to think us all so foolish as to do so. The lack of integrity of simply adding the Credit Card fees to the transaction and thinking us foolish enough to think it's anywhere near their increase, insults my intelligence and that of any intelligent person.  Keep in mind my calculations are based on maximum fees which I can assure you, T-Mobile does not pay near the maximum, they are too big a customer.

 

so whats Verizons excuse for not allowing it? money grab as well?

So we play the they did it!, excuses. Our parents taught us about those silly games. I do not care what Verizon does, this is about T-Mobile access to peoples banking information in time for their next data breach and the lack of integrity and honesty about the Credit Card service charges. This is far above CredtCard fees and will rake in an additional ($156.24 to $213.36) per year. Facts and numbers don't lie and integrity is lacking in the corporate world of 2023. Don't wet on my leg and tell me it's raining. Show integrity, speak truth and charge the actual fees. What a concept!

BeenThere wrote:

“ 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.

 

A great time to remind people that they can file a complaint with the FCC and contact their local politicians. Specifically about TMobile trying to save a buck at the expense customers data. With several hacks in the last few years and no real compensation for consumers other than some official statement and/or credit monitoring, its far past time these companies face some form of consequence.  Even if it's just bad publicity in the end.  On the other hand if enough people contact political leaders we could see the heads of TMobile dragged in front of congress to answer for their anti-consumer policies.

Or we can do nothing and just switch to another carrier and start the countdown until they get hacked  or introduce some horrible policy as well. 

jlfliberty wrote:

syaoran wrote:

That was announced months ago.  It is because credit card companies charge a service charge that is based on the percentage of every transaction, which eats into T-Mobile's revenue.  Removing the auto pay discount for credit cards negates that.  

magenta2738723 wrote:

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

sweetwillyd wrote:

This is simply a money grab plain and simple, I calculated the (maximum current) credit card fees on my monthly payment of $147.11. The (Maximum) T-Mobile could be charged on my Master Card is ($6.98). I have been with T-Mobil for 20 years and I'm switching. I refuse to give them my bank account information and think them very arrogant to think us all so foolish as to do so. The lack of integrity of simply adding the Credit Card fees to the transaction and thinking us foolish enough to think it's anywhere near their increase, insults my intelligence and that of any intelligent person.  Keep in mind my calculations are based on maximum fees which I can assure you, T-Mobile does not pay near the maximum, they are too big a customer.

money grab…. 

empathy wrote:

BeenThere wrote:

 

 

A great time to remind people that they can file a complaint with the FCC and contact their local politicians.

 

-->>And also (or more applicable) is the FTC.  People!! Please go now and file with the FTC.  It takes 5-10 min.  The FTC uses reports to investigate and bring cases against fraud, scams, and bad business practices.

I just did!!  If they get enough complaints, maybe T-Mobile will switch back, make the fee reasonable, and/or be responsible for when people get hacked.

FTC complaint on T-Mobile's "bad business practices" needs to gain momentum.  Others need to file!!

FTC file here: https://reportfraud.ftc.gov/#/assistant 

then file with your state attorney general:https://www.consumerresources.org/file-a-complaint/

Adding my respectful feedback to this discussion:

I actually quite enjoy being a T-Mobile customer. They have been providing a service for me, at a reasonable cost, for years now. I am happy with the coverage.

I am here today to express my disagreement with the choice to require debit or bank account for autopay. Many millions of credit card customers get an awesome benefit on their credit cards called "Cell Phone Protection". I have two credit cards that offer this. Essentially the benefit is: If you pay your monthly phone bill on that credit card, the credit card company offers you a protection plan on your phone (if it breaks). I have used this on an old iPhone 6S when it broke and I was cut a check for repair, it was great! No need to purchase AppleCare.

I want to continue to take advantage of this benefit for peace of mind when using my iPhone, but now T-Mobile changes their policy to cut the $5 plan discount if we don’t get off credit cards.

Additionally, one of my credit cards requires me to make 5 purchases per month in order to receive full points - setting up autopay for my phone bill here at T-Mobile for that card was a no-brainer, but now I have to remove this monthly purchase?

Extremely disappointed and hope someone reads our feedback and reverses course.

I really hope TMo is reading these comments.  Today I called to register a complaint and concerns about Tmo not being able to keep my account info secure, and was suggested I open a cash card like Paypal Debit and fund it so I can pay through there.  Now I have to put a firewall between the two just to protect myself from their incompetence?  The only reason I haven't switched yet is the logistics of getting 7 lines moved to another carrier with new SIMS and porting of numbers, but this is likely to happen soon.  

Now I will have to budget and make sure funds are in my account based on my paycheck rather than the flexibility I have now with paying off a CC before interest accrues.  

Also, how can a massive org like Deutsche Telecom not be able to negotiate better deals with Visa/MC etc.  or even just absorb the cost?  Are their  margins so thin that 3% credit charge is going to bankrupt them?  Do Better T Mobile. We're not asking for free stuff, we're asking you to not make it difficult to give you our money.  

I hope T-Mobile listens. This action will get you a short term gain but in the long run you will lose people. It seems that a director came up with an idea to make more profit by saving the 1 or 2 % the credit companies charge ( based on the credit company) while it sounds like millions but that if you look at it on one side. If you want to see the big picture, here it is:

1- people will not feel comfortable giving a bank account or a debit as it cause much hustle if they leaked (everything is possible to be leaked and hacked)

2- not everyone has enough cash as most Americans lived paycheck to paycheck, except for T-mobile managers :)

3- T-Mobile advertises its pricing after the autopay discount. Losing it only will result in T-Mobile losing its competitive pricing. 
 

4- Remember that Autopay is saving T-Mobile so much hustle, time, and money to collect payments, follow up, send letters...etc, So forcing your customers to go through this trouble and frustration so you can save an extra 1% or 2%  that's called greed!

5- When ATT & Verizon got bigger, they came up with some greedy ideas. As a result of this, they lost their ground to T-Mobile. Now T-Mobile is getting bigger, will it do the same mistakes or it will be wise?

Think about it! T-Mobile can't keep hackers out of their databases and now they want your bank account information!  😱