A Fee to pay a bill

I aim to avoid fees when simply paying regular bills.
My internet provider charges a monthly $2 non-direct debit fee. My payment method of choice is B-Pay.
The provider advised that there is a $2.50 B-Pay fee as this is what B-Pay charges them and they need to recoup this from customers. Would this be correct?
When I asked what method of payment was available to avoid any fee the response was credit card as I would only be paying the merchant fee and this was a lesser amount.
Not very responsible for a large company to make a recommendation to customers to use credit to pay regular bills.

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Hi @lobrien12,

The RBA has provided some information showing credit cards are typically the highest cost for merchants to process (after cheques). The average cost for BPAY is 0.73 cents, or another way to look at it is 0.21 percent per transaction value. However, there’s no way to know exactly what your ISP pays as it will be part of their merchant agreement with their bank.

Ok, so what do we do about? The first thing you could try is to call back their customer service department and demand they wave the fees. Hopefully your custom is valuable enough to them that they see the sense in this, but if not, you can always shop around and weigh up the costs. Also, I’m sure you’re already aware of this and it’s probably beside the point, but if you get a debit card with a Visa/Mastercard logo, you’ll be able to access the fee-free payment option without getting traditional credit card (and all the trappings that they can bring).

Hope this helps!

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This annoys me as well. I have tried ringing Optus to ask why they charge this fee on their home & internet services, because when you pay by BPay they don’t charge it on their mobile services. All I got was a “because we do” type of answer, and an hour of wasted time! They did offer to remove it from one bill, as a once off - not permanently, and not for everyone. Not very satisfactory.
Given the RBA changes last year to fees& surcharges, I wonder if it’s even legal now for them to charge more than it costs them to use BPay (less than $1).
The sneaky sarcastic part of me is thinking that in order to get my money’s worth, I should pay my Optus bill in three or more installments LOL.

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