Optus non-direct debit fee. Fair?

Zenyatta on 11/10/2017 - 12:57
Last edited 12/10/2017 - 11:15

After a bad situation with a company continuing to direct debit my account after leaving them, I now have an aversion to direct debit, particularly when our life savings are sitting in there. I now sit down once a month and Bpay everything. This is not a problem for anyone except Optus, who charge a $2.20 "non-direct debit" fee, despite me being told during the sales period that there was no fee to direct-debit. After speaking with Optus today, their support person told me that the fee was fair because Optus has to manually handle and pay over that money from Bpay in a separate department.

I suppose my question is, is that really true? Is there a cost to Optus in the process of receiving a Bpay, beacuse no other company that I deal with (and I probably pay 20 unique bills every few months) charges me a fee for Bpay. If it really does cost them $2.20, then that's fine. If not, I'm considering taking this to the ACCC. I pay my bills on time every month, so it doesn't seem fair. Before anyone says it, yes I'm sure it's in their fine print, but that doesn't make it fair or even legal in all cases.

I won't give companies, particularly ones as sketchy as Optus, unfettered access to all of our savings.

What are your thoughts?

edit: Just realised, the credit card fee is 0.385%. That would come to 23 cents for a $60 internet bill. I'll just pay with credit card next time. At least with credit card they are required to reflect the actual cost of the transaction, and I'm fine with that.

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Comments

  • [Deactivated] on 11/10/2017 - 13:01

    there are costs involved in every payment method, but companies like getting paid so usually absorb them. I don't think Bpay fees are excessive. I've never come across a company that won't take Bpay, but plenty which won't take Amex

    • OzJD on 12/10/2017 - 19:42

      TPG doesn't do Bpay from memory.

  • spackbace on 11/10/2017 - 13:09

    CREDIT CARD PAYMENT FEE

    Unless your account is paid by Direct Debit, payments made via credit, debit or charge cards will incur a 0.385% (inc. GST) Payment Processing Fee. This fee will appear on the next bill after the current bill is paid. For a fee free alternative, set up Direct Debit.

    So stupid :/ Telstra happily takes PayPal even

    • Zenyatta on 11/10/2017 - 13:12

      Yeah. I appreciate that it is in their terms, but I'm still arguing that it's unfair. As it turns out, I went into my contract believing that no such fee existed after the sales rep told me that I could bpay without charge. He has since denied that he told me that, now he says he was referring to a paper bill charge… which was never an issue for me because I prefer my bills to come through email anyway.

      • spackbace on 11/10/2017 - 13:17
        +3

        Unfair doesn't equal illegal.

        If you want to go toe-to-toe with a major company like Optus, go ahead, but I would imagine their Terms & Conditions are ironclad and that ACCC would've checked them out before.

      • whooah1979 on 11/10/2017 - 14:56

        the sales rep told me that I could bpay without charge.

        Get that in writing or it didn't happen.

        • Zenyatta on 11/10/2017 - 16:55

          Yeah. Of course.

  • apple2016 on 11/10/2017 - 13:33
    +1

    I have always used BPAY and never had to pay extra for optus.

  • xazark on 11/10/2017 - 13:34

    I believe Bpay costs the company approximately 35c per transaction, a previous company I worked with was looking to introduce this to increase profit. PR nightmare but some companies dont really care about the negative publicity this type of thing will cause

    • xazark on 11/10/2017 - 13:37

      Just to add to this, they are careful not to call it a "Bpay fee" they will call it a payment processing fee or something similar so they can charge whatever they like, there are rules around only charging the fee that is incurred by the company when its more specific

    • tomsco on 11/10/2017 - 13:45

      That's what I thought. My company was looking at introducing it and absorbing the cost, as that 35c or whatever would be saved on HR costs trying to identify payments.

      I imagine actual $ of Bpay for a company the size of Optus would be less - Latitude Financial introduced a $0.95 fee for Bpay and even that seemed pricey. $2.20 is pretty steep.

      • Zenyatta on 11/10/2017 - 13:47
        +2

        That's the thing. I don't mind paying the actual costs but $2.20 to me seems like a cash grab. Legal? maybe. Fair, absolutely not. It's still worth complaining about.

  • idonotknowwhy on 11/10/2017 - 13:36
    +1

    I won't give companies, particularly ones as sketchy as Optus, unfettered access to all of our savings.

    That's a smart move. I had monthly billing issues with Optus, which took a 30-minute call each month to resolve (in the form of 'credit' on my account).

    I would just include their fees in your decision of going with Optus, or going with a better and/or cheaper provider instead.

  • skinner on 11/10/2017 - 13:54

    You could look at it the other way as well, by only charging the fee to people who want to use Bpay they can reduce the costs for everyone else (although no doubt they would pocket the savings anyway). Same as the paper statement option, similar to the insurance companies that give you a discount for buying online. I would assume that there is some manual processing required to marry up the credits with the accounts so less manpower is money saved.

    Probably a business strategy to retain customers as well. Most people wouldn't want to pay $2.20 per month so they will just opt for the direct debit option. For the 1 in 1000 that gets annoyed about it and leaves they probably retain an extra 5 that have just done a "set and forget".

    If you want to get around the fee you could set up a separate bank account used only for direct debits. At the same time you do your other Bpay payments for the month just transfer enough money to cover the Optus direct debit.

    • Zenyatta on 11/10/2017 - 16:56

      Yeah I'm considering this option. It wouldn't increase my workload because instead of sending the money to optus each month, I could send it to my other bank account.

  • pantsparty on 11/10/2017 - 13:56
    +1

    I pay my Optus bill with Bpay with no additional fees. What kind of account do you have?

    • Zenyatta on 11/10/2017 - 16:57

      cable. They don't charge it to my mobile account though.

  • djkelly69 on 11/10/2017 - 13:58
    +1

    I have Optus 'direct-debit' my credit card, so at least they aren't drawing from my bank account and I could theoretically cancel the card if I needed it stopped.

  • Baysew on 11/10/2017 - 14:02
    +2

    I now have an aversion to direct debit, particularly when our life savings are sitting in there.

    Having your life savings just sitting in a transaction account, is perhaps not an astute financial decision.

    • tsunamisurfer on 11/10/2017 - 14:43
      +2

      This depends greatly on the amount of 'life savings'.

      If the 'life savings' are Mt Druitt level, then it really doesn't matter.

    • lupiter on 11/10/2017 - 15:47

      What if it's also an offset account for their home loan? Provided it's under 250k for one person or 500k for two, it's pretty safe. Maybe too boring. Not enough 80k cars?

    • Zenyatta on 11/10/2017 - 16:58

      It's our offset account.

  • tsunamisurfer on 11/10/2017 - 14:45
    -2

    Zenyatta…

    It does not matter what the costs are on Optus' side.

    YOU agreed to the terms and conditions that YOU read and YOU acknowledged.

    Now you want to cry foul, seriously?

    I hate people who accept a contract then bitch about its 'unfair' terms after signing.

    • Zenyatta on 11/10/2017 - 16:57
      +7

      Thanks. There's always one. The contract was agreed to over the phone, and as I stated in the OP, I asked about Bpay and told there was no fee. The other thing is, I never imagined there would be a fee so I wasn't on the lookout for one. I have paid countless bills over the years to various companies and no one has ever charged this fee, so I wasn't even aware it was a thing. Are you aware of all of the fees and charges for every company you transact with?

      • tsunamisurfer on 11/10/2017 - 19:38
        -3

        Over the phone they will ask you do you agree with the terms and conditions as stated in the product statement, to which you said yes.

        Am I aware of every single fee for every single service I use? No, however I do pay attention to the terms of payment and any fees associated as it is one of the main channels where they slap fees.

        • Zenyatta on 11/10/2017 - 20:41
          +1

          I appreciate your point of view, but this one really surprised me. I wasn't expecting it.

      • [Deactivated] on 12/10/2017 - 11:37
        +4

        if you were speaking with sales over the phone, i'd be surprised if the whole phone call wasn't recorded. contact the optus complaint department and request a copy of the call recording.

  • colbus123 on 11/10/2017 - 14:59

    If you know how to use ozbargain, then you would have no problem transferring funds (enough as you need to pay bills e.g keeping $1000 in a transaction account) and having all your direct debits come out of that. You deprive yourself of interest letting thousands of dollars sit idle in a transaction account (not to mention hassles if someone goes tapping away with your debit card!)

    • Zenyatta on 11/10/2017 - 17:02

      Yeah I'm considering that. It's just, again, that if they overdraw me or continue to bill me after the contract period has ended, who is going to pay the honour/dishonour fees that my bank charges me?

  • Wystri Warrick on 11/10/2017 - 15:23
    +3

    Time to leave Floptus :), that's what I'm doing :)

    • Zenyatta on 11/10/2017 - 17:03
      +1

      We used to call it Droptus

  • leoshleo on 11/10/2017 - 15:24

    I bpay my optus mobile bill, don't get a processing fee at all. My girlfriend did get the fee for paper invoices, which i changed to email and haven't had anymore since. I did have issues with credits being applied to my bill for the last 5 months, this month is finally resolved…

  • toniyellow on 11/10/2017 - 15:48
    +2

    28 degrees mastercard charge a similar fee. Free to pay your bill by direct debit, 95 cents if you do it by bpay.

    • capslock janitor on 24/06/2019 - 21:26

      Free now to pay from the bank account. Whoopee!

  • PissLUR on 11/10/2017 - 16:30

    Yes, It is Fair.

  • outlander on 11/10/2017 - 17:04

    Optus are scum when it comes to billing. Those fees are bs, and thats just the start of their dodgy dealings. They tried to charge me that fee for the months I had free credit! They're obviously banking on people not willing to waste time over something so little. Makes me feel better about me being with them

    • Zenyatta on 11/10/2017 - 18:01

      Even if nothing comes of it, I'm going to make a written complaint and waste their time having to formulate a reply. At the very least, I'm going to enquire with the ACCC as to whether or not fees and charges have to reflect the real cost of doing business.

  • bobwokeup on 11/10/2017 - 19:58

    Being an Optus customer on direct debit who pays a slight fee for paying via credit card, I think it is fair. Reason being is that it entices more people to setup direct debit with small fees and free if you do it via your bank account. It's not Optus's fault that you had an issue with another business. If you are that concerned setup another savings account just for direct debit.

  • pjcook on 12/10/2017 - 07:56

    I understand your frustration and reticence to allow direct debit. You should know that you can go to your bank and instruct them to cancel any direct debit and they have to comply. Also, you could set up a second account for direct debits thatt you only put enough funds into to cover the bill/s.

    • Zenyatta on 12/10/2017 - 09:45

      This I didn't know. I'll inquire with my bank as to whether or not I can refuse direct debits once my business with them ceases.

  • CodeXD on 12/10/2017 - 09:51

    Looks like its all outlined here

    http://www.optus.com.au/shop/support/answer/late-payment-oth…

  • vegvari on 12/10/2017 - 10:25

    Been there complained as well as I've been trapped with overcharges on direct debt and pay BPAY now.
    I combined my mobile with the net package and am slugged with the fee. Tried to fight it got nowhere.

    • Zenyatta on 12/10/2017 - 11:15

      What about paying by credit card? the fee is only 0.385%. I'm going to do that next time.

  • lainey13 on 12/10/2017 - 11:14

    Yep, I pay the same fee for my nbn bill with Optus. Total crap but I refuse to use direct debit. It sucks balls. I'm just here to agree with your complaint.
    Optus is the ONLY one who charges me a fee to pay by Bpay.

    • Zenyatta on 12/10/2017 - 11:16
      +1

      What about paying by credit/debit card? the fee is only 0.385%. I'm going to do that next time.

  • Speckled Jim on 12/10/2017 - 11:34

    How about this scenario to avoid fees altogether?

    Open an ING everyday account. No fees, online and phone access only.

    Establish an automatic transfer of $60 from your current savings account to happen a few days to a week prior to…

    Direct-debit from your proxy ING account. Savings remain secure, no CC fee and best of all, Optus can't overcharge as there's only ever sufficient balance for the contracted amount.

    On principle you will have relented to DD, but covered yourself also.

  • bobwokeup on 12/10/2017 - 15:32

    I just saw this on the First Option Credit Union website who have added a $3/month admin fee to all accounts unless balance is over $25k or the account holder is under 25 years old (another reason to change the kids bonus saver account):

    The cost of producing printed statements and postage has increased significantly over the past few years. Therefore, First Option is introducing a monthly fee for paper statements.

    • Zenyatta on 12/10/2017 - 15:50

      I'm OK with a fee for paper statements. Maybe with exemptions for certain individuals like pensioners or something.

      • bobwokeup on 12/10/2017 - 16:42

        Yeah same here but in my opinion no exemptions, as why should other members indirectly have to pay for pensioners because they don't want to change.

        I guess I was trying to save that all fees are going up across the board.

  • bestvariety on 27/11/2017 - 15:25

    I have been charged by Optus for not selecting Direct Debit. I lodged a complain to TIO (Telecommunications Industry Ombudsman). If you are not happy about Optus $2.20 non Direct debit fee, please go to that website to lodge your complain. Maybe that complain is useless, but just wish more and more voice to joining together for this unfair fee.

    • bobwokeup on 27/11/2017 - 15:58

      I disagree. I'm with Optus and I think anyone not paying by direct debit should pay the fee. Same goes for the fee to have the bill mailed out to you. It costs nothing for both parties to have them emailed to you.

    • Mars22 on 29/11/2017 - 01:37
      +1

      Hello, I've had some issues with Optus and found the online help people to be no help. If you need an email to contact someone at Optus who can actually help try:
      [email protected], [email protected], [email protected], [email protected], or [email protected]. they are various management people.

      • MishyMoo on 29/11/2017 - 03:01

        Very good. Thank you 😊

  • vegvari on 29/11/2017 - 11:03

    I went through the same thing. I had a mobile account which was ok with BPAY, but when the NBN came on and I combined the accounts the fees began. I tried to argue there was no fee with just the mobile but they said it's a different division and they transfer the NBN part which charges the fee.
    I elected to keep paying via BPAY but will consider the credit card option now.
    I also was ripped off by a company with direct debit and refuse to go there.

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