Lancet Jades
05-24-2004, 08:26 PM
Telstra fees up 'because it can'
May 24, 2004
TELSTRA had increased charges for its customers paying bills by credit cards because it could, a Senate committee was told today.
Telstra unveiled a range of line rental fee price hikes in April and said it would for the first time charge customers extra for paying their bills with credit cards.
Labor Senator Sue Mackay today asked Telstra officials how they could justify the new credit card charges.
"Because we are able to," Telstra's group managing director finance and administration, John Stanhope, said.
"It's quite a small charge and the number of people who pay by card to Telstra are about 20 per cent and 18 per cent pay by phone by card.
"It's not a full recovery of (Telstra's) costs.
"It's a convenience to pay by card and the Reserve Bank of Australia told people they are able to do that (charge for credit card payments)."
Mr Stanhope said the new credit card charges ranged from 1.69 per cent for American Express card holders down to 0.63 per cent for bank Visa cards.
He also said customers had the option of being able to pay their phone bills 18 different ways, including at the Post Office, Telstra phone shops, at banks and over the phone.
Senator Mackay asked Mr Stanhope why Telstra did not offer a discount for customers who paid their bills by cash.
"It's something we haven't considered, Senator," Mr Stanhope said.
"The assumption of course is doing it by cash is less costly...than by some other means. "That isn't necessarily the case, it might be as costly as other methods."
May 24, 2004
TELSTRA had increased charges for its customers paying bills by credit cards because it could, a Senate committee was told today.
Telstra unveiled a range of line rental fee price hikes in April and said it would for the first time charge customers extra for paying their bills with credit cards.
Labor Senator Sue Mackay today asked Telstra officials how they could justify the new credit card charges.
"Because we are able to," Telstra's group managing director finance and administration, John Stanhope, said.
"It's quite a small charge and the number of people who pay by card to Telstra are about 20 per cent and 18 per cent pay by phone by card.
"It's not a full recovery of (Telstra's) costs.
"It's a convenience to pay by card and the Reserve Bank of Australia told people they are able to do that (charge for credit card payments)."
Mr Stanhope said the new credit card charges ranged from 1.69 per cent for American Express card holders down to 0.63 per cent for bank Visa cards.
He also said customers had the option of being able to pay their phone bills 18 different ways, including at the Post Office, Telstra phone shops, at banks and over the phone.
Senator Mackay asked Mr Stanhope why Telstra did not offer a discount for customers who paid their bills by cash.
"It's something we haven't considered, Senator," Mr Stanhope said.
"The assumption of course is doing it by cash is less costly...than by some other means. "That isn't necessarily the case, it might be as costly as other methods."