AT&T and T-Mobile change autopay discount requirements
The two wireless carriers have joined Verizon in requiring a debit card or bank account instead of a credit card for their autopay discounts.
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AT&T confirmed this week it will cut its monthly autopay discount for some customers following similar moves by T-Mobile and Verizon, but there are still ways to save on your phone and internet bill.
Starting April 24, AT&T customers enrolled in autopay and the carrier’s paperless billing discount program with an eligible debit card will receive a $5 rather than a $10 discount. Customers enrolled using any credit card that is not the AT&T Points Plus credit card will no longer receive the discount.
However, customers enrolled with a bank account will continue to receive the $10 discount for eligible internet plans and $10-a-month discount per phone line for eligible wireless plans, an AT&T spokesperson confirmed to USA TODAY.
The move is the latest aimed at nudging consumers to pay with a bank account to avoid credit card processing fees and reduce credit card disputes, transaction failure and rates of fraud, Shikha Jain, a partner at the commercial growth consulting firm Simon-Kucher, told USA TODAY. It comes after the big three telecommunications companies already lowered autopay discounts for customers paying with a credit card.
“We are seeing businesses become more urgent trying to find ways to protect margins, drive up sell, reduce operational costs, while trying to minimize consumer backlash,” Jain said. “It’s easier to reframe a discount than to justify a price hike.”
Ways to continue saving on phone and internet
While the most obvious way for AT&T customers to continue saving money is to switch their payment method to a bank account, Shikha Jain, a partner at Simon-Kucher, said consumers also have other options to capture savings.
“These rules are all designed to cut costs, reduce risk and improve customer profitability without raising base plan prices,” Jain said. “But savvy consumers still have levers that they can pull.”
She suggested consumers should look for perks in the small print of their contracts and benefits they aren’t taking advantage of. These might include making use of promotions bundling your internet and streaming services, or stopping payments for data features you don’t need.
“Sometimes it’s about calling customer service and finding ways to negotiate better rates and get deals but you have to ask,” Jain said.
Similar surgical cost-saving measures as well as moves to boost customer loyalty are happening in other industries as streaming platforms like Netflix cut password sharing and airlines promote branded cards that come with discounts or perks.
Reach Rachel Barber at rbarber@usatoday.com and follow her on X @rachelbarber_
