Yeah, an ISP I worked at started charging a $1 mailing fee for paper bills 10 years ago. Quite simply, it cost us more to mail a bill than to e-mail bills, when you factor in paper, envelopes, postage, and labor. We converted everyone to e-mail billing by default, and those who still requested/required a paper bill for some reason paid $1.
Originally Posted by rduncan
I'm not sure but I found out State farm Insurance is now charging me $1 a month to pay them automatically on a direct debit each month. Yep, they charge me $1 for the privilege of having them take the $$ out of my bank each month. I guess for some it's easier than a 6 month bill all at once but really. I really need to shop for insurance.
That sounds stupid, but I guess maybe it's to reduce the number of possibilities for NSF drafts (and thus, more work to collect the fees).
But it reminds me of what our phone company did. They decided to start charging a convenience fee for paying bills online. There was also an existing convenience fee for paying the bill over the phone or in-person. So the only non-fee way to pay was by mailing in a check. That seemed stupid to me, because manual check processing is pretty much the most labor-intensive way and most customer-inconvenient way to accept payments (besides in-person payments).