Being charged extra because of your method of payment?

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I have a question to ask. Has anyone noticed that a lot of companies are now charging you to make your payments either online or over the phone? I have an outstand car loan and recently when I call in my payment they want to charge me like $10 more to do it over the phone. For almost a year they have waived the fee but the last time I called to make my payment they alluded to the fact that they can't keep waiving the fee. The issue is that they do not have an office in my city where I can swing by and drop off the payment. Either I call it in or pay online, on their site. Even doing it on their site they tack on an $8 fee for using that service. Even our rental agency has a $10 technology fee they add on because you're paying your rent through the rental portal. I thought we lived in the technology age where things were supposed to be more convenient and streamlined. I can understand if we had to drop off a check or money order to one of these bill services and someone had to physically drive to a bank to make a deposit but if you allow the option to pay online or even by calling in your payment then why should that be more expensive. If I sign an agreement with you that my car payment is $405 a month then why are you charging me $415 simply because I call in the payment and give you my debit or credit card number to process it and it automatically goes directly into your bank account? Has anyone noticed this? Are you paying more to call in a payment or to make it via a website and is there a way to get around it short of driving to the office to make the payment in person?

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Type: Question • Score: 8 • Views: 686 • Replies: 41

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@4thtwin,

Read the small print. If you had known this was the case before taking out the loan or service you wouldn’t have agreed to it.

Many places charge extra if you you use a credit card.

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@4thtwin,

Fees are the in-thing. You can advertise low prices then collect more for "convivence". That said, if you do something that requires a personal interaction like calling in to give them your number, that is going to cost them more and they want to disincentivize you from using that service. Set up something with your bank to automatically debit your account when the payment is due. That is probably free.

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@izzythepush,

This is a debit card I'm making a payment with.

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@engineer,

In regards to my car payment they do have a site where you can make the payment online which eliminates someone physically having to answer the phone, take your card info, process the payment, then email you a confirmation receipt. However, they still charge you $8 to make the payment that way. Same with paying our rent. The rental office has a portal all residents can sign up and in in for to make your payments but there's a $10 technology fee added on with that. Again, no one is having to physically process the payment. It's all automated via their site.

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@4thtwin,

I'd just set up a direct draft with your bank. I doubt they charge for that.

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@engineer,

Yeah, I can do that for my car payment. But the rental office still charges the $10 fee because it's still an electronic transfer so to them, that's "technology."

It's like they are nickel and diming you for whatever payment method you use. Imagine all the money they are getting just from processing or technology fees they tack on?

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@4thtwin,

Yes, I have noticed this, and I resent it. In my case, I can avoid it by paying with what seems to be their preferred method. For my dentist, I actually pay cash. This means they have more cash on hand, which means they are a greater target for armed robbers, but that's their problem.

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I would be upset if there were no way to avoid the charge. However, I don't mind being charged extra for using a credit card.

Usually these charges make sense, the credit card charges the business for processing my payment, it makes sense for them to pass these charges to me.

United Airlines charges extra for talking to a real representative. This makes perfect sense, these real representatives cost them money, and I would rather have them using this money to keep my fares low.

Recently I had to talk to a real representative because of a complication in changing my flight that wasn't my fault. They waived the fee (and I would have been upset if they didn't).

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@roger,

I guess they must want everyone to go back to the days of writing a check and mailing it into the office.

1 Reply

@4thtwin,

If you can do that, do it. What’s the price of a stamp?

I bet it’s significantly less than ten dollars.

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@maxdancona,

I see where you're coming from to a point. However, most people aren't taking monthly plane rides. I'm talking about your regular every day bills. Car payment, rent or mortgage, water, power bills, cell phone, etc. Things that come due every month but you're being charged extra each month simply because you're calling in a payment or logging into that particular utility's website and making the payment online.

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@izzythepush,

Yes, the price of a stamp is much less than a processing fee, however, I do not have checks and couldn't tell you when the last time I even ordered any from my bank. They push online bill pay and things like that so I stopped using or ordering checks at least 15 years ago.

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@4thtwin,

All of my energy bills are paid by direct debit, can’t you do something like that?

Engineer seems to do alright.

I thought you were talking about things like car loans, not utilities.

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@izzythepush,

I can but typically those bills like power, water, phone aren't usually a set amount each month. They are based on usage so it'll be hard to set up an automatic draft from your bank if the amount is going to fluctuate. Rent and car payment are different. They are set amounts each month.

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@4thtwin,

Even for those things... I don't have a problem as long as there is some way to pay that doesn't involve an extra charge. I also set up direct payment from my bank account for car payment and utilities.

I recently paid some parking tickets online. They charged me $3.50 for the ability to use my credit card. I grumbled, but I paid. The alternative was driving a couple of towns over to pay in person.... something that would have taken at least an hour. Honestly the $3.50 was well worth it.

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@4thtwin,

4thtwin wrote:

I can but typically those bills like power, water, phone aren't usually a set amount each month. They are based on usage so it'll be hard to set up an automatic draft from your bank if the amount is going to fluctuate. Rent and car payment are different. They are set amounts each month.

For my utilities... I can set up a direct withdrawal from my bank account, but tell them to not take any money out of my account without my permission.

Every month I have to log on, and tell them how much money they can take. When I press the button, they take it out of my bank account. This option costs me nothing.

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@4thtwin,

Our banks don't charge for bill payments at the bank. Online and at a registry office there's sometimes a charge, so we do have checks for that reason. They cost little. For regular amounts, like your car payment, you can send them 6 at a time, post-dated. One envelope, one stamp.

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@Mame,

Do people still use checks?

I don't think I have written a check in 20 years (I am trying to think back... maybe I paid rent with a check in 2000). I bet most people under the age of 40 have never written a check and never will.

My kids taught me how to use Venmo to send money online, and I just sent money to my mother that way.

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@4thtwin,

Have you contacted your providers? My energy use fluctuates like everybody else, but I still pay by direct debit. The energy companies average out your annual use and turn it into a monthly amount.

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