Consumerist
Reader Michael says:
I moved into a new apartment last month, and just received my first electric bill. It is run through a company called AUM Inc. (aum-inc.com), on behalf of my apartment complex. I went to pay the bill online (as I prefer to pay my bills) and I noticed something on the page. In fact, it's on the page no less than 5 different times.You know, it was actually on the page one more time, but we cropped it. Sorry.My bill: $11.84
"Online Convenience Fee": $7.50That means this convenience will cost me... 63% of my actual bill. In fact, for reference, if I don't pay my bill until after it's due, I'll owe a total of $17.84. That means I can wait until the bill is past due, buy a stamp, and still pay $1.09 less than I would if I paid online today.
This means now I have to go buy stamps, as their kindly enclosed envelope does not include postage.
I've attached a screenshot of the payment page. I blacked out my name and apartment complex, I didn't see anything else identifying on the page.
Comments
Ripoff
Well...atleast it's not deceptive.
Ummmm, did anyone let this guy know that his bank can process an on-line payment or submit a check for free? Most do.
That's lame. If your bank has an online bill payment option, save yourself the $7.50 and the cost of stamps and use that instead.
Billpay?
I can see them trying to make up the transaction fee of the credit card, but this is just pure corruptness.
Get a fucking stamp and tell them to shove that convenience fee up their ass. BOO FUCKING HOO that you have to buy stamps. I just got off the phone with the post office and they assured me that they will sell you more than one (I confirmed this with a supervisor)so that the next time you need to mail something, YOU WONT HAVE TO GO TO THE POST OFFICE AGAIN. Sweet Jesus, Is this what America (and the Consumerist) is coming to ?
I've noticed that most utility companies seem to outsource their online bill payment to some other company (which often turns out to be pretty shady like this).
The solution's pretty easy...don't use the utility's service, use your bank's online bill pay (like SmellyGatto said, it's usually free, just as fast and a lot more convenient than going to half a dozen different websites to pay your bills.
@SmellyGatto: @pip41: @arch05: Do you suppose now that you've said it three times, no one else will make the same suggestion? I bet you $1,000 they do.
The "online convenience fee" is ridiculous...but so is expecting your payment return envelope to have postage prepaid. Has the OP never paid a bill by mail before?
My guess is that the company has gotten fined previously for not adequately disclosing the fee, and now is posting it a gazillion times. I'll even extend my guess to say that the company has gotten fined previously AND the ridiculous 7.50 is now covering the cost of said fine.
@blondegrlz: Are you kidding? The internet would go down in flames if people only mentioned a solution once. Everyone wants to get in on the action.
@arch05: ding @pip41: ding @SmellyGatto: ding
thats what i was thinking
@Snarkysnake:
Have you been to a US Post Office lately, or ever? I'd rather pay a $1000 convenience fee, or have a lobotomy for that matter, before setting foot in a Post Office. The lines are long, the employees are rude, incompetent and uncaring, and stamps taste bad. I use online bill pay from B of A for everything. Post Offices are for fools.
@blondegrlz:
as a bonus, with my online bill pay you can write a note in the memo-line, I take this as an opportunity to make fun of the company I am paying.
@blondegrlz: you win!
@blondegrlz:
Heaven forbid that posters have the same opinion, and post it in a location where comments take a few minutes to show up.
This story is a joke, the convenience fee is $7.50 not 63% its a flat rate, and if he pays after the due date it adds a late fee. So what was the point of this post other then to whine about a convenience and late fee?
Yes the sky is blue there is no reason to cry because you want it to be green.
@Pylon83: I guess it depends where you live. The post offices near me, ranging from small town ones to large city ones, have usually been decent. The workers in the smaller ones seem to be much more polite since they tend to know most of the patrons, but even in a big regional hub (Woburn, MA) the workers have been relatively polite. But even beyond that, most of them now have vending machines so you can buy stamps without having to actually talk to anybody. The Woburn office also has an automated system for shipping packages that's available 24/7 so I can do all my mailing at 3am if I want and never see a postal employee.
Wait, is this Ticketmaster? Home of the $10 convenience fee on a $25 ticket?
My last two natural gas providers (Georgia Natural Gas and Infinite Energy) both charge about $5 to pay your bill online in any form, either with a credit card or with a bank transfer. Since I can even pay my rent online, my gas bill is the only reason I still write any paper checks. (A $0.41 stamp) < ($5 online fee).
What's stupid is that it costs more to support a mail-in check system. They have to pay someone to open the envelope, sort the checks, and either scan them or get them processed at a bank. I refuse to pay an extra $5 to make their job easier for them.
@Pylon83: here is an option you can buy stamps at your supermarket. Plus you can put a note with the cash for a book of stamps in your mailbox. Or you can even order them online!!
In fact you can send packages, order shipping supplies, labels and ship things and schedule a pick up without even going to the post office, :)
Used to be, companies would give you small discounts or something for paying online. I mean, you ARE saving them printing materials, inserting labor and postage...in addition to processors that have to open the mail, process the paperwork, file it, etc. Now, they are starting to attempt to charge YOU for the convenience of paying them quickly and efficiently. Lame.
@IphtashuFitz:
No. Post Offices are the root of all evil. Period. No good can come from a post office. Their automated machines steal your soul. It's just a trick they use to collect more souls. STAY AWAY FROM POST OFFICES!
i just paid my credit card online and noticed a $15 convenience fee if want the payment posted that day. It's free if you select a date in the future. I guess they want to catch all the people who forgot to pay and want to pay it the day it's due. seriously, being charged to give them money. will this fee mania never end?
@Snarkysnake: Brava, Snarky.
To Reader Michael:
"This means now I have to go buy stamps, as their kindly enclosed envelope does not include postage."
Utility: Duh, no postage. They make money when you are too lazy to buy a stamp.
Magazine cards: Duh, postage-paid. They make money when you return your card quickly and easily.
Duh. (I just wanted to add one more for emphasis.)
@PirateSmurf:
See my part about where stamps taste bad. I believe that bad taste is the Post Office trying to poison you. Online Bill Pay does not try to poison you. Clearly the OP is simply trying to not A) have his soul stolen, and B)not to get poisoned. In my opinion, $7.50 is a small price to pay to keep your soul and not be poisoned.
One of my student loan companies charges $5 to make a payment by phone or online. I'm going to send them a check to pay it off and I have to request a coupon book in order to pay them without a fee.
Lame.
@PirateSmurf:
and these days you don't even have to lick most of them!
(ooh, context is my friend.)
@Carencey: Heaven forbid you have a sense of humor about anything.
@Pylon83: Ok, if you're still licking stamps, I'm afraid that post office you've been visiting is actually a den of drug dealing! That explains all of the bad attitudes and slow service!! I'm so glad I figured this out for you.
Seriously though - self-adhesive stamps are all the rage now. When was the last time you bought stamps?
@Carencey: shoulda aimed that at Pylon83 too, sorry.
@Snarkysnake: Wrong side of the bed this morning?
As others have suggested, get set with electronic checks through your bank -- should just be a matter of setting up online access and filling in the payee information (assuming you have a checking account). No inane convenience fee, no trying to figure out where you left your checkbook and stamps from the last time you used them. Yeah, paying by CC would be convenient, but it's not $7.50 convenient.
I guess he will feel better next month when the $7.50 is only 3.5% of his total bill.
I like how the headline makes you think that the charge is 63% of any bill. It was just his first month's prorated bill. I'm sure when the next bill for $300 rolls in the percentage will change to 5% or so and not be so sensationalized.
So don't pay online. I like all the $7.50 notices, haha, I'll have to show that to my boss. CC charging services online can actually get to be pretty expensive, and if online bill paying isn't a popular option in your area then don't expect the fee to go down anytime soon.
Why doesn't he just buy the postage on the web from the USPS and print it on the envelope and call it a day? No extra fees and no hassle at the B&M location.
@blondegrlz: Not at all. That was funny right there.
@blondegrlz: @omerhi:
Yes, I think there should be a new rule that a good suggestion is only posted once. That way it can be a fun game where if the OP can't find the hidden good advice in the 200 comments of irrelevant chatter and OP-bashing, she doesn't deserve a solution to the problem.
I, for one, would prefer that lots and lots of people endorse a suggested plan of action rather than one anonymous internet dingbat. But that's just me.
@RGISMYFAVORITECANADIANMORMON:
I refuse to buy stamps. The self adhesive stamps are just like the automated machines: They steal your soul. I hate the Post Office (generally) with the Fury of 10,000 Suns. That is, unless of course they are the cheapest place for me to ship packages. Then I love the post office.
@backbroken:
HYSTERICAL!! Well Played, backbroken...
@Saboth: Don't underestimate the cost of online bill-paying. These outside services will charge a flat fee (or a percentage) for each transaction, plus the credit-card fee (also a percentage of the amount). It can add up to quite a bit of money. Not $7.50, of course -- that's just a way to gouge you a little more -- but still significant for a smaller operation.
Paying a minimum-wage clerk to process payments by hand really isn't that expensive on a relatively small scale. So you're not doing them any favors by paying online.
My local power company has a $5 fee if you pay online with a credit card, but no fee if you pay online with a check. It's a bit annoying because I have to go grab the checks and it involves more numbers, but hey, I'm not going to give them more money than I have to.
Don't forget that the Post Office is jacking up the rate on stamps to $0.42 in May. With the way the USPS is raising rates Forever Stamps will outperform the stock market pretty soon.
@Beerad:
"Wrong side of the bed this morning?"
Nah, I'm always this way. You did remind me that ING has a paperless checking account called "Electric Orange " ( Great name for a rock band,BTW). It will send a check first class mail for no fee whatsoever. You just fill it in online and never see it again until the happy recipient uses it to buy dope and booze (or electricity). It has saved me mucho $$ in postage and hassle . Also makes a good "fuck you" for Paypal when I buy something on Ebay.Best part- They won't issue a check if the money is not in there.Never an overdraft fee,or any fees that I am aware of.
Processing Credit Card transactions are NOT free. Most VISA/Mastercard processors charge the company a percentage (like 2.5%) of each sale -- meaning if your Utility Bill is $200, and pay by Credit Card, they're probably going to "lose" at LEAST $5.00 to the Visa/Mastercard company just for YOUR convenience.
Buy yourself some self-adhesive stamps at a grocery store (or out of one of the MACHINES at the post office, there's rarely a line for those), put a check/money order in the envelope and slap a stamp on it. You'll save money.
Alternately, look at the "Direct Debit" tab; those are -usually- FREE.
@Snarkysnake:
Precisely. Online bill pay (having your bank send checks) is infinitely superior to using the Post Office and their soul-stealing products.
If you really are afraid of the Blue Meanies at the USPS, they now have a new fangled doo-dad called the (tah dah!) "Forever Stamp", which will be valid for mailing a first class, one ounce letter no matter how much the cost goes up.
Go to the post office (if you dare!), the supermarket, or online, buy about a zillion of 'em (you can bequeath them to your heirs, if necessary) and you'll never want for stamps again. And they're self-adhesive; no need to put your tongue on them. Unless you want to. I don't want to know.
Oh, yeah, and do it now before first class postage goes up a penny from $0.41 to $0.42 on May 12, 2008!
You can buy stamps online and the post office will deliver them at no additional charge (beyond your immortal soul that is).
Not everyone gets free online bill pay. I'm not rich enough for my bank to give it to me for free. I do use stamps, but I really wish my utilities would offer a free online payment. Heck, I'd be happy to take online billing with it. Then the small cost of credit card processing is offset by the savings on mailing and hand processing.
Heck, even with paper mailing, the savings on hand processing of the checks would still be there.