Wireless companies push for debit and bank transfers over credit card payments

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Autopay arrangements are convenient and can lower the risk of late fees, but companies also push autopay because it discourages customers from switching.

by Herb Weisbaum, contributing editor, Checkbook.orgFor as long as I can remember, wireless phone companies have offered sizable discounts to customers who agree to sign up for automatic bill payments—typically $5 to $10 a month per line.

Encouraging customers to switch from credit to debit card payments reduces the wireless companies’ costs to process payments. Credit card transaction fees are significantly higher than those for processing debit card or bank-transfer payments. “I just don’t like the idea of people having direct access to my bank account,” Hardekopf told Checkbook. “The fewer people who have my checking account routing number and checking account number, the better.”, doesn’t have a problem paying with a debit card or electronic check. She did the math and decided the savings on her wireless bill was worth the risk.

 

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