Virgin Media Slash Non Direct Debit Payment Handling Fees to 45p

Customers of Virgin Media, specifically those who pay their bills by non-Direct Debit methods (e.g. debit / credit cards) will be pleased to know that the somewhat hefty £5 payment handling charge (quite a bit higher than some other ISPs) is being slashed to just 45p from 1st April 2016.

At present some of the provider’s contracts already apply a 45p instead of £5 charge for such payments, but it is not yet universal among all subscribers; unless you agree a new minimum period of at least 12 months with Virgin Media. However those who still pay the £5 charge are now being advised that the 45p rate will shortly be applied to all subscribers.

A Virgin Media Spokesperson told ISPreview.co.uk:

“The reduction in handling charges reflects the Payment Surcharges Regulations.

We are emailing eligible customers about the reduction in charges. Any customers who want to discuss their charges should contact us direct.

We want to make it as convenient as possible for customers to pay their bills and most prefer the simplicity of Direct Debit. We are ready to help our customers make the best choice for them.”

The Consumer Rights (Payment Surcharges) Regulations 2012 were introduced several years ago in an effort to “ban traders from charging consumers more than the direct cost borne by them as a result of the consumer using a given means of payment,” although some telecoms and broadband providers have been quicker than others to adapt.

Interestingly the rules also entitle consumers to receive a refund if the charge is deemed to have been excessive and therefore in breach of the rules, although we do not know if this has been tested with an ISP before.