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what's up with T-mobile removing autopay discount for credit cards?


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I just literally signed up for a new plan - debit cards have fees for providers too - accessing my bank account isn’t a good approach from a security perspective (noting that T-mobile has been hacked - i wouldn’t have shared this directly with T-mobile customer service but there is not email or chat and I don’t have time for phone calls

 

Action Needed:
Update your payment method to receive your AutoPay discounts
ACTION NEEDED by 07/17/2023. We’re making changes to the payment methods that qualify for AutoPay discounts. To continue receiving the $25.00 AutoPay discount, you must update your payment method to a debit card or a bank account.

Visit your T-Mobile account to update your payment method and keep your discount by 07/17/2023.
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Best answer by syaoran 15 June 2023, 15:48

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Userlevel 5
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My family will be switching to someone else. Not going to use my debit card or bank account info especially since a T Mobile employee had stolen my credit card number. I was able to get the money back since it was the credit company's money not my own... With a debit card it will be impossible to get the money back if the debit card number gets stolen since it doesn't have the same protection as a credit card... So since my info was already stolen once by these idiots we will be switching to another company now.. This is what happens when you screw over your customers.... It's insane... And T Mobile had 3 data breaches already... 

Userlevel 5

Just un-enroll from autopay.  Let them mail you a paper bill and send them a check for payment.  See what that does to their costs.

Userlevel 4

This is just a money grab.  Forcing you to use certain payment options to receive a discount means T-Mobile is having money issues.  Sad to see.

Userlevel 4

T-Mobile is going to lose a lot of customers they are now behaving like the other carriers with subpar service I call bs on the team of experts because when I call 611 my call gets routed overseas and I can hardly understand the rep on the phone not to mention the data breaches they have had I hope someone gets really smart and bring a class action against them because they are reckless with your info and it’s just flat out wrong. They want your bank info so the next data breach all of your money will disappear 

Userlevel 4

With all the hacking that happens to large corporations, I don’t feel comfortable allowing access to personal data only to be scooped up by thieves and scammers. This happens too frequently. T-Mobile was already hacked in November of 2022, and although they claim they were able to contain the breach only a day later, it still was vulnerable to a security flaw as large corporations stand. (T-Mobile hack: 37 million customer data stolen in November data breach | CNN Business). At least with credit cards, there are more protective measures in place, as opposed to debit cards or banking policies.

Userlevel 4

TMobile can’t keep my data safe and they want me to pay with a bank account or debit card?? NO WAY!!! I believe their offering is already overpriced (look at what Europeans pay for cell service!!) so clawing back the discount with this non consumer friendly scheme just makes TMO way less appealing. This is just a money grab to make their targets, nothing else. Everything in the USA has credit card fees built into their price given that is likely the prevalent way of paying nowadays. After 20 years with Tmobile I am seriously considering switching my family to another provider.

Tmobile - very POOR CHOICE on your part!!

Userlevel 4
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I just got the same message today, I only have 2 phones.  Sorry for your burden.  

I’m torn.  I pay my bill with the 3rd credit card, the orange one, I don’t remember what it’s called, I don’t carry it with me.  Only use it for the cash back.  NOBODY has my bank account info except the mortgage people.  I don’t like to use a debit card since it’s coming right out of my account and if that number becomes breached (thanks t-mo), then that’s a drain on my account.  Is all that worth $10?  Not really sure.

Userlevel 4

No way to use my debit card to pay T Mobile! I’m highly disappointed from that T Mobile decision..We have family plan with 5 phones and my son starts to look to switch to some other phone company!

Userlevel 4

This is so WRONG! After suffering *several* hacks & thefts of personal identity information because of T-Mobile's lax security T-Mo now expects me to give them access to my debit card or bank account!?! T-Mo must be CRAZY! NEVER!!!

And, yah, shopping around with other carriers… 

Userlevel 4
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that is a cost of doing business - same with debit cards - not a new phenomena and an acceptable practice to provide customers with flexible payment options (also, note that we jut signed up last month)

Userlevel 4

I don't buy it. A business as large as tmobile whining about cc fees while the mom and pop sub shop I went to yesterday takes all credit cards available and manages to not play the "Woe is me" card.

You mean to tell me tmobile hasn't struck discounted processing fee deals with card processors? As someone who worked in the banking industry, like I said, I don't buy it. 

Userlevel 3

It’s not too late for the corporate decision makers to reverse this terrible decision.

I’m becoming more unimpressed with and disillusioned by T-Mobile every day. Slowly chipping away at the benefits will only drive customers away, so as soon as my two-year “contract” is up, it’s adios.

Userlevel 4

I just got the message too.  It’s stupid.  Especially since I use Apple Pay which gives me the additional 3% cashback on top of the $20 discount

And the credit card I pay with has phone insurance covering theft and accidental damage. As long as I pay the bill with it...

Tmobile best rethink this decision. 

Userlevel 3

Are there ay lawyers out there? I don’ think it is legal to change the rules after you already made an agreement. What about a Class action law suite ??? I have been using my CC since I started with T-mobile in 2022 Feb. Now I will lose my discount. I chatted with them and was told that it is because people will pay with CC, get the discount, then revers the charge, REally? I don’t think that is the case. How can they really expect someone to be forced to use a personal checking account or debit card to receive the discount. I can choose to use my CC but at a cost now of 20.00 a month, this is basically a charge to protect my checking account from being hacked. 

Userlevel 3

Ok I just here to see when this was announced bc I rec’d the text message. I’ll be switching carriers soon.

Userlevel 3

Add the fact that TMobile is notorius for data breaches. At least you have protection using your credit card, none using your bank account. Just a matter of time before someone gets their checking account wiped out. This business decision sucks.

Userlevel 3

I just got the text from TMobile about the autopay with credit card no longer receiving a discount as promised.  I consider this as TMobile breaching the service agreement.  And since TMobile is beaching the agreement, all agreements are off including arbitration.  I will file a PUC complaint and join any and all class action lawsuits.

Really TMobile?  You think you're going to get access to our debit card or bank accounts? NO!  You think you're going to take away our discounts and still get to charge our credit cards?  NO!  Time to switch back to paper billing and we will send you electronic checks (no stamp required) until we switch to another service.  Good bye TMobile!!

Userlevel 2

“ It is because credit card companies charge a service charge that is based on the percentage of every transaction”

I dislike the way this is stated because its comes off as anti-bank and pro-Tmobile, or like this is something new that got sprung on Tmobile.

Transaction Fees ALWAYS exist, are not anything new, the % is between 1 to 4%, typically. For a giant company like Tmobile with their volume of customers and transactions, their transactions fees will be on the lower side of the average, not more.

its very simple:  Some data analyst at Tmobile pulled a report of how many users pay Autopay via credit card, they calculated the total merchant fees paid and then compared to the discounts offered and some exec somewhere didnt like the math.  “We gave them $5 and had to pay $1 to the bank...”

If they are good at analysis, they would forecast the inevitable increase in aging AR due to people dropping out of auto-pay and/or loss of subscribers.  That also means the money they make from not paying fees offsets whatever hit they take to their AR or customer loss.   So in the end, Tmobile is really saying the # of people paying auto-pay with a CC is enough to save a few bucks on fees, but not impactful enough where the increase in AR and loss of customers will be felt.

I mean, that's assuming they were thorough.  But unfortunately, they may be predicting right.  After the initial wave of anger and people dropping in and out subsides, that line graph will just continue with barely a blip.  The other reality is they can always just raise price anytime, so they could give us back the $5 while increasing the plan price by $5.  There’s no way to beat Tmobile at this game other than to just leave.

 

Userlevel 3

Since TM has a nasty habit of getting hacked, it seems that there are only 3 options: 

1: Continue to pay with a CC, lose $10 and keep your decking account safe from TM’s poor security. 

2: Get a 2nd smaller no-fee checking account and have TM bill it there and keep your $10 discount. 

3: Find a new provider that doesn't get hacked every week. 

Userlevel 2

I just got the message too.  It’s stupid.  Especially since I use Apple Pay which gives me the additional 3% cashback on top of the $20 discount

Userlevel 7
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I'll still be paying with a credit card.

Add the fact that TMobile is notorius for data breaches. At least you have protection using your credit card, none using your bank account. Just a matter of time before someone gets their checking account wiped out. This business decision sucks.

 

Userlevel 7
Badge +14

This is so WRONG! After suffering *several* hacks & thefts of personal identity information because of T-Mobile's lax security T-Mo now expects me to give them access to my debit card or bank account!?! T-Mo must be CRAZY! NEVER!!!

And, yah, shopping around with other carriers… 

How many other carriers pay the plans taxes when you start looking? I'll be interested.

Userlevel 4

Tip: if you are going to pay with a debit MC or VISA check with your bank if you have an option to turn access to the card on and off. Turn the card on the day before tmobile sucks money out of your account and turn it off as soon as they grabbed your payment. 

PITA having to do that every month but it's one way to keep your per line discount. 

Oh! You do know debit card transactions also charge transaction fees? Next you know we'll have to pay our bill at a local tmobile store. In cash. 

Userlevel 3

Nevertheless, consumer credit cards offer fraud protection automatically.  Not so with a debit card.  If someone obtains access to my credit card information through a cellular company hack, I have some protection, but may not have protection if they drain my account via a debit card.  Some banks, but not all, extend the protection on debit cards, but from what I have read banks are reluctant to reimburse debit card fraud even if the protection was offered.

Userlevel 2
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That was announced months ago.  It is because credit card companies charge a service charge that is based on the percentage of every transaction, which eats into T-Mobile’s revenue.  Removing the auto pay discount for credit cards negates that.  

Just because it was announced months agao doesn’t mean it’s right. Pathetic that they are doing this. 😥

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