Telstra customer fumes over 'rip off' cash surcharge: 'Not the only one'

Telstra customers are being slugged with an extra fee to pay their phone bills in cash over the counter. One Sydney customer shared his outrage over the "cash surcharge" and claimed he had not been able to get a clear answer from the telco as to why he was being hit with the extra fee.

Telstra currently charges the $2.75 fee to customers who pay their bills in person at an Australia Post or Telstra store, along with customers who pay using a cheque through the mail.

A Telstra spokesperson told Yahoo Finance the $2.75 fee for customers who make non-electronic payments had been in place for some time and helped manage the rising costs associated with processing cash and cheque payments.

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“Electronic options are our preferred billing and payment methods which is in step with global and local trends in billings and payments across a range of utilities, telcos and service providers,” the spokesperson said.

“It is simple for customers to avoid these fees by making the switch to electronic billing and payments by using the My Telstra app, our website, by visiting a Telstra store, or calling us.”

Optus charges a $3 fee and Vodafone a $2.73 fee for bill payments made in person at Australia Post branches and this applies to both cash or EFTPOS payments.

Are you being hit with cashless fees? Contact tamika.seeto@yahooinc.com

Speaking with 2GB’s Ben Fordham, listener Patrick shared he was paying the $2.75 fee each month when he went to pay his bill over the counter at the Telstra shop in Penrith.

“It’s just ridiculous. I’m not the only one I’m assuming,” Patrick said.

Patrick said Telstra store staff were unable to explain to him why he was being charged the fee and he said he had “had enough”. He claimed he also spent 20 minutes on hold with the Telstra billing payment team to try and find an answer.

“If I do direct debit I wouldn’t be charged at all … It all adds up over the years at the end of the day. My mum and dad, they don’t do direct debit, they pay cash as well,” Patrick said.

“It’s a bit of a rip off to be honest. I know it is $2.75.”

Most customers exempt from fee

Telstra said a “significant number” of customers were exempt from paying the fee, with around 68 per cent of customers not charged for non-electronic payments or to receive paper bills (which incurs a $2.50 fee).

“Customers can apply for an exemption if they have a valid Health Care, Pension Concession or Department of Veteran’s Affairs Card, if they don’t have an email address, access to an active internet service or customers living in remote communities including those that are First Nations communities,” the Telstra spokesperson told Yahoo Finance.

Telstra said it had reached out to find out Patrick’s information and to see if he was eligible for a fee exemption or to discuss other options for him to pay his bill.

Cash made up just 13 per cent of payments in Australia in 2022, Reserve Bank of Australia (RBA) data found, dropping from 69 per cent in 2007 and 27 per cent in 2019.

The cost of processing cash is rising as demand for cash drops. It's putting pressure on cash transport businesses like Armaguard, which secured a $50 million deal with the big banks, supermarkets and retailers to keep it going for another year.

Telcos hikes prices

It comes as the major telcos hike their prices for mobile phone customers.

Telstra increased the price of most postpaid plans by $2 to $4 per month on Tuesday, while most prepaid plans will increase from October 22.

Telstra said the price increases would help it to continue "investing in the performance, reliability and security" of its mobile network.

Optus increased the price of its plans by between $3 to $6 earlier this month, while Vodafone customers were hit with a $4 increase in March.

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