In what almost seemed like a staged publicity stunt, Verizon Wireless quickly rescinded their plans for a new $2 fee for most bill payment options. An employee leaked an internal memo describing the new fee, and within twenty-four hours, the wireless company both confirmed and then rescinded the fee, citing their policy of listening to their customers. The timing was convenient; Verizon Wireless had been suffering from a number of mobile service outages that had customers complaining about the company.

It seemed to me there was more outrage about the service interruptions than the $2 fee. The fee was addressed within 24 hours while the service outages were never properly addressed. Would a company stoop to creating its own fake conflict in order to distract customers from other problems?

Real customer outrage is powerful, however. Bank of America’s $5 monthly debit card fee was in the works when massive consumer feedback was successful in convincing the company to reconsider its plans, and find revenue from consumers elsewhere.

There are issues more important than these small fees. While fees here and there can have a snowball effect, both over time and across other companies happy to charge the same fees once success is apparent, the bigger issues often don’t get as much attention. Wells Fargo’s change of policy to include mandatory binding arbitration is a much bigger problem for consumers than a fee, but since it isn’t immediately apparent how this could affect customers, people stay silent. Customers who have trouble with the bank will be prevented from availing themselves of a court process that includes discovery and appeals.

Most of the time, binding arbitration clauses won’t have any immediate effect on customers’ wallets unlike monthly fees, but the consequences could be worse. With enough outrage, Wells Fargo would likely change these plans, but the issue is not getting enough attention.

Here are some of this week’s most interesting articles in addition to a few articles I’ve published elsewhere. Read the full article →

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Update: Less than a day after a Verizon Wireless employee leaked a memo with this information, the company has announced that it will not be moving forward with the implementation of this $2 fee.

The sad fact is we now live in a world where many companies have left their customers behind in the search to squeeze every possible cent out of every transaction. I’ve long lamented the increasing incidental fees charged by airlines; you can’t eat, check a bag, or receive a seat assignment early without paying extra now, and soon you may not be able to sit or use the restroom in-flight without swiping a debit or credit card. Gas stations charge more for fuel if you want the convenience of using a credit card. Banks tested and for the most part ultimately backed away from monthly debit card fees.

Starting January 15, Verizon Wireless will charge its own customers $2 to pay their own mobile phone bills.

Only certain payment methods will be subject to this fee, but the new policy leaves only a few opportunities to avoid this surcharge:

• Enroll in auto-payment, so your bank account is debited or your credit card is charged the same day every month.
• Mail a paper check as if you’re still living in the twentieth century.
• Use your bank’s bill payment service.
• Walk into a Verizon Wireless store and pay a bill in person (an option for everyone, but a popular for those without bank accounts).
• Pay with a Verizon Wireless gift card.

If you use a credit or debit card to pay your bill via Verizon Wireless’s website or over the phone, the $2 fee will apply, but if you pay via check (electronic ACH or paper) via phone or online, there is no fee. It’s another case of payment type discrimination; it costs more to process credit and debit card transactions, and Verizon Wireless is passing that cost along to certain customers. The customers most affected are those who need to wait to the last minute to pay their bill — customers living paycheck-to-paycheck, many of whom don’t have bank accounts.

It doesn’t take much to avoid this fee, but it’s another hassle for many customers and an indication that the pattern of nickel-and-diming across a variety of industries will continue. And those most at risk are those who have the least power to do anything about it.

Photo: ColumbusCameraOp

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Today is Free Shipping Day, and thousands of online merchants are participating in this movement, offering free or reduced price shipping so customers have an opportunity to receive last-minute orders in time for the holidays. Free Shipping Day was founded by an entrepreneur-couple in December 2007 as a location for finding shipping discounts offered by major brands. Since its launch, the service expanded to Canada and the United Kingdom.

While shopping online is convenient, consumers often pay for that convenience through shipping costs and the delay between ordering an item and receiving the delivery. A benefit of ordering online is that you never need to leave your house, unless you prefer to see an item in person before making your purchasing decision.

Last night, I ventured outside with the goal of upgrading my cell phone. Verizon Wireless released the new Samsung Galaxy Nexus, and I figured this would be a good opportunity to replace my current, sluggish phone. Due to a car accident, traveling to the store took three times longer than it should have, and the store had no phones in stock by the time I arrived. I did have a chance to try the phone in the store, though. The sales representative offered me an opportunity to order the phone from the store, with no guarantee of when the order would arrive, but the price in the store was higher than the price on the Verizon Wireless website.

I realize that the price of this device would likely go down in just a few weeks, but I’ve been looking to get rid of my current phone for about a year. At least I didn’t need to pay a delivery fee. Verizon Wireless is not a merchant on the list of those participating in Free Shipping Day; this retailer offers free shipping in its normal course of business.

Here are the retailers participating in free shipping day.

Photo: kalleboo

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