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Steven J. Vaughan-Nichols

Verizon backs off $2 bill payment charge

By | December 30, 2011, 2:40pm PST

Summary: The Internet speaks and Verizon is forced to listen.

Verizon is not doing much Internet "amping" now.

Verizon isn't doing much Internet "amping" with its failed attempt to charge users for paying their bills.

It must have seemed like just another day for Verizon Wireless executives. “I know,” someone in the CFO’s office said, “We’ll charge people who make one-time credit or debit card payments on the phone or online $2 to pay their bill.” It must have seen like another fine way to nickel and dime their customers and make the bottom line better. Then, the customers got word of it and all hell broke loose. A day later and Verizon announced it would drop this new charge.

In their statement, Verizon said, “Verizon Wireless has decided it will not institute the fee for online or telephone single payments that was announced earlier this week.” Why? “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.”

Dan Mead, Verizon Wireless’ president and CEO added, that, “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.” You think?

As word of Verizon’s new charge had spread, out-raged users had taken to the social networks to voice their outrage. An online petition on Change.org stating, “It’s not just about the money … It’s that Verizon thinks it can do anything to its customers, and that we’re powerless to stop it. (Spoiler alert: We’re not.)” garnered more than 100,000 signatures in a day.

At first, Verizon, following in the footsteps of Bank of America with its proposed $5 monthly fee for allowing users to use their debit cards, tried to tough it out. Earlier in the day, Brenda Raney, a Verizon spokeswoman, told Bloomberg News that Verizon wasn’t “considering canceling the charges.” Raney added, “Customers have a number of alternatives to pay their bill and not incur the convenience fee. Paying the fee is an option, not an absolute.”

Users replied that they want the option of paying the bill the way they wanted to pay it and not one of the Verizon approved ways thank you very much.

Then, the Federal Communications Commission (FCC) took notice, and simply said, “On behalf of American consumers, we’re concerned about Verizon’s actions and are looking into the matter,” in a statement.

Mere hours later, Verizon had backed down. Like the Bank of America and its charge, and more recently Go Daddy with its support of the Stop Online Piracy Act, we’re finding that big businesses will, when pushed by the Internet-organized public, change their plans.

In the meantime, while Verizon Wireless has shown that while it can turn on a dime on its business plans when push comes to shove, its actual 3G and 4G Internet infrastructure continues to show signs of strain and the company’s 4G service announcements aren’t going to reassure anyone.

Verizon letter image by Matt McGee, CC 2.0.

Related Stories:

Verizon caves to public pressure and dumps $2 fee

Verizon Wireless: Yep, that’ll be $2 to pay your bill online

Verizon explains 4G outages: Parsing the IT failure transparency

Verizon customers have nationwide data outage, again

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Topics

Steven J. Vaughan-Nichols, aka sjvn, has been writing about technology and the business of technology since CP/M-80 was the cutting edge, PC operating system

Disclosure

Steven J. Vaughan-Nichols

Steven J. Vaughan-Nichols is a freelance writer. He does not own stocks or other investments in any technology company.

Biography

Steven J. Vaughan-Nichols

Steven J. Vaughan-Nichols, aka sjvn, has been writing about technology and the business of technology since CP/M-80 was the cutting edge, PC operating system; 300bps was a fast Internet connection; WordStar was the state of the art word processor; and we liked it.

His work has been published in everything from highly technical publications (IEEE Computer, ACM NetWorker, Byte) to business publications (eWEEK, InformationWeek, ZDNet) to popular technology (Computer Shopper, PC Magazine, PC World) to the mainstream press (Washington Post, San Francisco Chronicle, BusinessWeek).

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RE: Verizon backs off $2 bill payment charge
lehnerus2000 2nd Jan
@klumper
Yeah it sucks. sad
0 Votes
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Convenience Fee?
Dietrich T. Schmitz * Your Linux Advocate 30th Dec
Convenience for Verizon maybe but not the consumer.
0 Votes
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@Dietrich T. Schmitz * Your Linux Advocate Out of all the carriers, Verizon is the one that will charge you a fee for everything they can think. I'm surprised they don't charge a "methane fee" .... for every time somebody cuts the cheese near a Verizon phone.
0 Votes
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At least
Dietrich T. Schmitz * Your Linux Advocate 31st Dec
@wackoae
...label it correctly: Inconvenient Fee
0 Votes
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Profit margins hogwash
klumper Updated - 30th Dec
The company made the decision in response to customer feedback about the plan, which was designed to improve the efficiency of those transactions."

They mean of course, improve bottom line (NPM) efficiency, but sadly can't mustard the fortitude or courage to be honest about it. All of which equates to BS by any other name.
0 Votes
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"Mere hours later, Verizon had backed down. Like the Bank of America and its charge, and more recently Go Daddy with its support of the Stop Online Piracy Act, we???re finding that big businesses will, when pushed by the Internet-organized public, change their plans."

Another reason why so many corporations want SOPA passed.
0 Votes
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Compartmentalization
Robert Hahn 31st Dec
As I understand it, Verizon was not going to charge a fee if you mailed them a check. Since processing a paper check costs twice as much as an electronic transaction, it would serve them right if all their customers mailed them paper checks.

This idea was not going to help their bottom line. It was going to cost them millions. Whoever thought it up suffers from rectal-cranial inversion. I seriously doubt that this came out of the office of the CFO. This idea came from some totally departmentalized weenie whose own department was going to benefit, while shifting huge costs onto the snailmail-and-paper side of the house.
0 Votes
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@Robert Hahn

depend today on the speed and convenience of auto pay, internet pay and phone pay, and in almost shocking numbers, how many overlook (or choose to look past) various kinds of nick fees, since they seem to get them everywhere they turn.

It's too late to expect the masses to rely solely on paper checks and 50c stamps this far into the 21st century, to include little old ladies in many cases. That's what they were counting on, to indeed help their bottomless line, and it backfired.
0 Votes
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At least you "guys" in the US have some sort of chance of standing up against the corporations.

In Australia it's legal for companies to demand payments without supplying invoices.
If you have the nerve to demand an invoice, you get charged an additional fee!
0 Votes
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Now THAT
klumper Updated - 1st Jan
@lehnerus2000
In Australia it's legal for companies to demand payments without supplying invoices.

is wild M8.
0 Votes
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@klumper
Yeah it sucks. sad
0 Votes
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This is not a win for the Consumer. It's a win for Verizon that will quietly up the ante in service costs. They'll most likely get more than the $2 fee would have brought which, may have been their sinister plan all along. BoA has already done this!

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