Verizon Surcharges

[franlofter]

I just did a new verizon contract with 3 lines 700 min family plan
with unlimited text and 3 lines with $30 data plan. my bill should be $199 but i get my first bill and they are charging each line $ 14 in surcharges.
total of an extra $42 on my bill does this seem right to you all? I am really thinking about canceling with them before my 14 days is up.

Total Data $.00​

Total Usage Charges $.00
Verizon Wireless' Surcharges +​

Fed Universal Service Charge 2.88
Regulatory Charge .32
Administrative Charge 1.98
AZ State 911 Fee .40
El Mirage Tran Priv Sur on Tel 2.51
Maricopa Cnty Trn Priv Sur Tel .59
AZ Trans Priv Sur on Tele 5.33​

Other Charges and Credits​

Cellular Service - Activation 35.00

 

[Ikenstein]

Looks like it is simply $7.00 not $42.00 because $35.00 is the one time activation fee.

It's pretty normal (from my experience) to have around $5.00+/- in fees each month.

 

[franlofter]

Looks like it is simply $7.00 not $42.00 because $35.00 is the one time activation fee.

It's pretty normal (from my experience) to have around $5.00+/- in fees each month.

Are you kidding? $5.00 + in fees?

This is what each line is being charged + the $35 activation fee. total is $14 each LINE x 3 = $42+ $105 for 3 lines activation. total $147.02

Quick Bill Summary​

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Feb 13 - Feb 22​

Previous Balance​

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(see back for details) $.00
No Payment Received $.00​

Balance Forward $.00​

Monthly Access Charges $256.58
Verizon Wireless' Surcharges
and Other Charges & Credits $147.02
Taxes, Governmental Surcharges & Fees $.00​

Total Current Charges $403.60​

ALP-Account​

Total Usage Charges $.00
Verizon Wireless' Surcharges +
Fed Universal Service Charge 2.88
Regulatory Charge .32
Administrative Charge 1.98
AZ State 911 Fee .40
El Mirage Tran Priv Sur on Tel 2.51
Maricopa Cnty Trn Priv Sur Tel .59
AZ Trans Priv Sur on Tele 5.33​

 

[UrsusVIIILXXXVII]

Those last three charges are local and state taxes. Those have nothing to do with Verizon.

 

[copestag]

actually other than the $1.98 administrative charge none of them have anything to do with Verizon..... while I would argue that its wrong to charge an administrative charge when thats part of the service..... one could probably find that they tacked that on as a result of all the whiners a few months ago which forced them to rescind the proposed fee on transactions for those who cant pay their bills

the rest of those fees are state/local taxes, 911 fee, and of course the federal universal fee (this is the fee so the gubmint can gives aways free cellphones to 'poor' people)

the $35 activation fee is a standard one time fee

so looks pretty normal to me...... and looks like the exact same thing youd have if you switched to someone else

 

[saptech]

I don't understand why any of them charge an activation fee, since you're already locked in for a 2 year plan.

The wife and I started to get on the family plan, after going with individual plans, but adding it up didn't quite make sense since VZW give you the cheapest minutes of 700 for FP and we have 450 minutes on individual plan. Going with the FP we would lose 200 minutes. The savings wasn't that much to me.

I wish I had stuck with US Cellular and their unlimited Talk & Text for $50 per month. I can do without surfing etc.

Just a thought!

 

[gvillager]

Are you kidding? $5.00 + in fees?

This is what each line is being charged + the $35 activation fee. total is $14 each LINE x 3 = $42+ $105 for 3 lines activation. total $147.02

Quick Bill Summary​

​

​

​

Feb 13 - Feb 22​

Previous Balance​

​

​

​

(see back for details) $.00
No Payment Received $.00​

Balance Forward $.00​

Monthly Access Charges $256.58
Verizon Wireless' Surcharges
and Other Charges & Credits $147.02
Taxes, Governmental Surcharges & Fees $.00​

Total Current Charges $403.60​

ALP-Account​

Total Usage Charges $.00
Verizon Wireless' Surcharges +
Fed Universal Service Charge 2.88
Regulatory Charge .32
Administrative Charge 1.98
AZ State 911 Fee .40
El Mirage Tran Priv Sur on Tel 2.51
Maricopa Cnty Trn Priv Sur Tel .59
AZ Trans Priv Sur on Tele 5.33​

Your total access charges are $256.58 (I'm sure that's prorated). $42. on $256.58 is 16.37% which is less than the average tax rate of 17.02% for cell phones in Arizona. Take a look at the link below.

The Tax Foundation - States Target Cell Phones for Stealth, Burdensome Taxes

Be glad you don't live in Nebraska, they pay an average of 23.69%.

I don't understand why any of them charge an activation fee, since you're already locked in for a 2 year plan.

They charge it because they can and it's what the market will bear. They'll only lower prices/fees after customers stop lining up to give them $$$.

 

[franlofter]

I was told by CS rep that they base those surcharges on your total bill and activation fee as well, basically she said they are using the whole $403 to come up with surcharges? can anyone confirm this?? i dont trust those CS reps they say anything. If this is true then my surcharges should be much lower the next bill?

 

[gvillager]

I was told by CS rep that they base those surcharges on your total bill and activation fee as well, basically she said they are using the whole $403 to come up with surcharges? can anyone confirm this?? i dont trust those CS reps they say anything. If this is true then my surcharges should be much lower the next bill?

With access charges of $199 and a tax rate of 17% it's expected that they will add an additional $34 in taxes every month. So your regular bill should be about $233/month.

 

[hilmar2k]

Your total access charges are $256.58 (I'm sure that's prorated). $42. on $256.58 is 16.37% which is less than the average tax rate of 17.02% for cell phones in Arizona. Take a look at the link below.

The Tax Foundation - States Target Cell Phones for Stealth, Burdensome Taxes

Be glad you don't live in Nebraska, they pay an average of 23.69%.

I wish you hadn't posted that link. I was happier before I knew that NY was the third highest for cell phone taxes.

Of course, I shouldn't be surprised. I moved to NY from MA, and every single tax here in NY is higher than the corresponding tax in MA. I did the math a couple of years ago, and as I recall, I paid something like $15,000 more in taxes than I would have had I still lived in MA. So much for Taxachusetts.

 

[franlofter]

With access charges of $199 and a tax rate of 17% it's expected that they will add an additional $34 in taxes every month. So your regular bill should be about $233/month.

I was told by 2 CS reps that they base the surcharge on your total bill amount, if that is the case and i am being charged 17% of $403 that would be $68 in surcharges?. and i was charged $42

 

[gvillager]

I was told by 2 CS reps that they base the surcharge on your total bill amount, if that is the case and i am being charged 17% of $403 that would be $68 in surcharges?. and i was charged $42

Either the 2 CS reps are wrong (happens all the time) or your misunderstanding what they are saying. The tax rate isn't based on the total bill (in your case $403). It's based on your monthly access charges and overages. The activation fees are taxed but probably only at the local sales tax rate (not the 17%).

You said in your first post that your bill should be $199 (I assume that is without taxes & surcharges), so your normal bill should be around $233/month with taxes & surcharges.

At the time of the sale they should have provided you with a summary of your first months bill to prevent bill shock. Check your paperwork, it should be in there.

 

[franlofter]

Thanks for help, your price of $233 sounds about right, when i did the new service i was expecting around $217 I will be adding the total equipment insurance on 3 phones hope they dont surcharge that?
I am paying $160 now for 4 lines with Tmobile but my service is very bad never get any 3g signal at my work and i am paying for unlimited data lucking if i do 700 mb a month with tmobile because if i do get a signal its slower than dial up and most of the time i lose data connection.
the first 5 days with verizon i used 3 gb of data at work so i guess its worth paying more to jump to verizon.

 

[gvillager]

Thanks for help, your price of $233 sounds about right, when i did the new service i was expecting around $217 I will be adding the total equipment insurance on 3 phones hope they dont surcharge that?
I am paying $160 now for 4 lines with Tmobile but my service is very bad never get any 3g signal at my work and i am paying for unlimited data lucking if i do 700 mb a month with tmobile because if i do get a signal its slower than dial up and most of the time i lose data connection.
the first 5 days with verizon i used 3 gb of data at work so i guess its worth paying more to jump to verizon.

I hope your on the Unlimited plan.

 

[franlofter]

Lol no 4gb plan, i did that because i was at the end of billing cycle so i went crazy with netflix. i will be fine as long as i watch movies at home.

 

[TwinsMomVA]

...and of course the federal universal fee (this is the fee so the gubmint can gives aways free cellphones to 'poor' people

Actually that's not what the USF is set up to do. Among other things it provides for:
........ immediate priorities of universal service. These include quality and reasonably priced services, access to advanced telecommunication services, access for rural, low-income and high-cost regions, equitable and nondiscriminatory service, specific and predictable price structure, access of advanced telecommunication services for schools and health care and libraries (Sec. 254(b)(1)-(7)).

Further:

On October 27, 2011, the FCC approved a six-year transfer process that would transition money from the Universal Service Fund to a new $4.5 billion a year Connect America Fund for broadband Internet expansion, effectively putting an end to the USF by 2018.

Google USF to learn more about the history and future of the USF.

 

[copestag]

sure they do other unneccessary things with it.... due to discretionary allocations....... but its also what pays for the gubmint to gives away free cellsphonez to poor people