fees…Fees…FEES!!!!

Posted: December 30, 2011 by AB in Political Bullshit, Rant
Tags: , , , ,

The last few days have seen Twitter, tech blogs and now every reporting news outlet, reporting on Verizon Wireless and the new $2 convenience charge for using a Credit Card to pay your damn bill.  2 Bucks. For some, this will be of little consequence as they pay by good ol’ written/mailed check, and others will just simply switch payment methods in order to circumvent the FEE.  But to many, who rely of plastic to get them through this payday, this is another way for Corporate America to stick it to the man.

Fees have become corporate america’s lifeline, and as consumers its time we all wisen up and take notice. Do you ever look over your bills and itemize the amount of bullshit FEES you are charged each month?? It’s ridiculous!  I can understand in some lines of work the purpose of a FEE.  I used to work for a retail business that charged a $9 fee for the service we did.  This fee wasnt sugar-coated, it was what it was…9 bucks tacked on at the end to ensure an area of consistent profit to help operate the business.  We were a very small company, and the revenue was in constant flux, so to rely on this $9 helped keep us in business.  The thing is, we didn’t give it a bullshit name, or try to hide it, nor were we passing on a cost of running the business to our customer.

That being said, more and more companies are using fees to cover up for losses elsewhere and stick it to the customer in a way they can’t get around. This $2 fee is very easy to breakdown. Credit Card companies are being pressured by our Gov’t to be more “Consumer Friendly”.  They have been hammered the last few years for unfair practices and for the high interest rates they charge as well as the “FEES” consumers occur from using plastic. The Credit Card Companies see this and watch profits fall as they are now being more heavily regulated and cannot hammer every poor bastard out there with nonsense FEES and inflated interest rates.. so they simply pass this cost onto the large corporations that use their services.  In this case Verizon Wireless and the 107 million active subscribers they have.  Verizon looks at this and says, I don’t want to get stuck paying the 45 cents in credit card fees that this customer is costing me, even though they already pay to be a subscriber and I am making a hefty profit on them as it sits, so I will pass along a $2 fee.  This helps us in a few ways. For those with the means, they will simply switch to an alternate form of payment, and I will get my money at a lower fee( Verizon will still pay a fee for Check Processing). The other way this helps me (Verizon) is any poor sucker that can’t make these arrangements will have to take that $2 in the ass every month. To you and I 2 bucks isn’t going to kill anyone.. but lets consider the possible windfall for Verizon on this.. If 60% of all Verizon users get stuck paying that fee, in one months time Verizon will have increased revenue in the amount of $128 million dollars…in 1 month.  If Verizon is in fact paying out over 100 million dollars a month for Card Processing Services(They are not) then let me be the first to say they are fools to be paying that high of a rate. But that is not the case, this is for PROFIT, and they are using this FEE to get it rather than increase prices across the board.

It’s not just Verizon..its every major corporation.  This country is in shambles because of shit like this.  Our politicians think new legislation to make the large corporations play more fair and look out for the little guy will fix this country, and that is fucking stupid.  When revenue is reduced, they simply pass the costs onto the little guy.  They will continue to find a way to reach profit goals and fill their greedy pockets with more money than anyone of us will ever see.

Fuck em.

More info- MSN Money EngadgetMobile

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