Telstra's cash payment fee reflects broader shift towards digital transactions

In an age where digital transactions are becoming the norm, it's easy to overlook the costs associated with traditional payment methods.

However, for those who prefer or rely on paying bills with cash or cheque, these costs can come as an unwelcome surprise.

A recent incident involving a Telstra customer has highlighted the frustration and financial strain these additional charges can cause, especially for those who prefer the tangibility of cash payments.


The customer in question, a Sydney resident named Patrick, expressed his dismay upon being charged a $2.75 'cash surcharge' for paying his phone bill over the counter.

This fee applies to Telstra customers who make payments in person at Australia Post or Telstra stores and those who mail cheques.


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Telstra added a $2.75 fee for cash and cheque payments in-store or by mail. Credit: Shutterstock


Patrick's frustration was compounded by Telstra representatives' lack of clarity when he sought an explanation for the fee, which he described as a 'bit of a rip-off'.

Telstra's spokesperson explained that the surcharge has been in place to help manage the costs of processing cash and cheque payments.

They pointed out that electronic billing and payments are the preferred methods, aligning with global trends across various service providers.


The spokesperson encouraged customers to switch to electronic payments using the My Telstra app, the company's website, or by contacting Telstra directly to avoid these fees.

It's worth noting that other major telcos, such as Optus and Vodafone, also charge fees for in-person bill payments at Australia Post branches. Optus charges $3, and Vodafone charges $2.73.

While younger generations may seamlessly adapt to digital payments, older Australians may need more familiarity with technology or concerns about online security.

Moreover, handling physical money offers a sense of control and transparency that some of our members might be reluctant to give up.

Fortunately, Telstra has stated that a 'significant number' of their customers are exempt from the cash surcharge.


Those who hold a valid Health Care, Pension Concession, or Department of Veteran’s Affairs Card, lack an email address or access to an active internet service or reside in remote or First Nations communities can apply for an exemption.

A Telstra representative has contacted the customer, Patrick.

The spokesperson explained that while electronic billing and payments are preferred, customers can avoid fees by switching to these methods through the My Telstra app, website, or by visiting a store.

About 68 per cent of customers receiving paper bills are exempt from fees, including those with specific concession cards, no email or internet access, or living in remote or First Nations communities.

Exemptions also apply to those needing special bill formats.


The Reserve Bank of Australia's data demonstrated the trend away from cash. In 2022, cash accounted for only 13 per cent of payments, a steep decline from 69 per cent in 2007 and 27 per cent in 2019.
As the demand for cash decreases, the cost of processing it rises, putting pressure on cash transport businesses and leading to deals like the $50 million agreement with banks and retailers to sustain these services.

Major telcos, including Telstra, have recently increased their prices for mobile phone services, increasing consumers' financial burden.

Telstra cited the need to continue investing in its mobile network's performance, reliability, and security as the reason for the price hikes on most postpaid and prepaid plans.

In related news, a woman voiced her anger after learning that her friend faced an additional charge for using cash at Australia Post.

Social media users have criticised the fee, with some calling it a 'scam' and others worrying about the shift toward a cashless society. You can read more about it here.
Key Takeaways

  • Telstra customers are being charged a $2.75 fee for making cash and cheque payments in-store or through the mail.
  • The telco claims the fee helps manage costs associated with processing non-electronic payments.
  • Many customers are exempt from this fee, including those with certain concession cards or those without internet access.
  • Amidst the declining use of cash, Telstra and other telcos are increasing the prices of their plans, citing the need to invest in network quality and services.
Have you been affected by cash surcharges when paying your bills? How do you feel about the shift towards a cashless society? Share your stories and opinions in the comments below.
 
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What a load of rubbish. As if these Telco giants don't get enough money from their customers already. The processing of cash transactions by them would hardly make a dent in the billions of dollars that they rake in every year.
Just a bunch of greedy bastards.
 
There is a fee for everything today. We are so controlled by banks, who make huge profits and the big companies with their additional charges. The notion of customer service and provision of a service has been over taken by profit, profit, profit, and greed. I wish sometimes for the simpler life to return.
 
I’ve complain about this every time I pay by cash. I am sick and tired of being dictated to, on how I should live my life. The bottom line is, I WANT TO USE CASH, but when I do Telstra FINES me for doing so. The other thing I want to point out, that Telstra fines you $2.50 if you request a paper bill. Not to mention the bank fees for using your debit cards. They get you one way or another.
 
Wait until we become a cashless society and all of these, now free / low fee, transactions will become a lot more expensive to help bloat the company's profit margins (this is only my opinion; however I am sure it will come true.)
That's exactly what they want, when they have total control, they can increase their prices whenever and by as much as they like and we can't do a f---en thing about it.
 
It is all very well for Telstra to force these charges on us. Why can’t we force Telstra to provide the services we are paying for. Living in Thornlands QLD with appalling mobile ‘black spots’ their response is sorry, you must be in a black spot, maybe buy an aerial, could help.
 
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The telco claims the fee helps manage costs associated with processing non-electronic payments.

Processing claims electronically means less staff and associated costs. Managing costs by charging $2.75 per cash transaction equates to raw profit. A double whammy which gives Hellstra's bottom line a boost.

Many customers are exempt from this fee, including those with certain concession cards or those without internet access.

I bet you have to apply to be free exempt, rather than being automatically exempt.

Hellstra is plucking the eyes of out of its customers and pissing in the socket. That's one reason I haven't been a customer for nearly 20 years.
 
My wife wanted $10 worth of coins (not small coins) changed to a note at an Aust. Post Office and was told there would be a $4 surcharge, of course on contacting AP they denied it was their policy.
Foodland next door happily changed it for nothing.
Its daylight robbery at APOs imo and shows all scammers are not digital and we must be vigilant against oppression.
 
When I became a pensioner, I was given a debit card, not a normal.bank card I used to have. Worked well forebears. NOW - every transaction I am.getting a surcharge for not paying cash. I do not carry a lot of cash & use my card for almost everything.
I pay all.my bills by B'Pay as I don't get put much & it is convenient.
I have a store card which I use in emergencies ie fridge, washer etc dies. It is one that you pay off within a certain time & I made my level just enough to replace broken appliance. I have not used it in years & now they are charging me a monthly amount.
I imagine I have an excellent credit record as I have never had any problems, however even my bank with whom I have been for umpteen years won't give me a credit card I had one up to the value of $35K which I cancelled down to 5K when I got the pension.
Living is hard at best but now one has to give up small peasures like coffee with friends etc. They say pay in cash ... the ATMs charge you when you get cash out so it is a lose/lose situation. Sorry I have waffled on but is getting so hard to fathom why. Thanks.
 
i think you will find if you pay any bill at a post office you will pay an additional fee...
the post office is not a charity and has to make money like all businesses;; they are mostly privately owned and they need to pay there power bill and all other business expenses + take home a weekly wage. so i think that extra fee doesn't go to Telstra it goes to the little post office proprietor.....
 
When I became a pensioner, I was given a debit card, not a normal.bank card I used to have. Worked well forebears. NOW - every transaction I am.getting a surcharge for not paying cash. I do not carry a lot of cash & use my card for almost everything.
I pay all.my bills by B'Pay as I don't get put much & it is convenient.
I have a store card which I use in emergencies ie fridge, washer etc dies. It is one that you pay off within a certain time & I made my level just enough to replace broken appliance. I have not used it in years & now they are charging me a monthly amount.
I imagine I have an excellent credit record as I have never had any problems, however even my bank with whom I have been for umpteen years won't give me a credit card I had one up to the value of $35K which I cancelled down to 5K when I got the pension.
Living is hard at best but now one has to give up small peasures like coffee with friends etc. They say pay in cash ... the ATMs charge you when you get cash out so it is a lose/lose situation. Sorry I have waffled on but is getting so hard to fathom why. Thanks.
if you use your bank ATM and not a private 1 you will not pay a cash withdrawal fee
 
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Not only are organisations now charging a fee for using cash, if you use some credit and even debit cards, you may also be charged a credit transaction fee by the business. The claim is this covers the cost to the business for using electronic money transfers. It just seems the days of getting a service for the stated cost is disappearing. Its like paying for something in the US before the "other" charges are added. When you pay an invoice or bill , the full cost should be known to the consumer. Many organisations are not making this clear to the consumer. It is just another rip off of the consumer.
 
Are the Telcos going to charge a surcharge if we pay accounts via Direct Debit?
Banks have stopped issuing cheques. A lot of Telcos have recently increased their charges. Now we get another one???
 
Just another Big Company trying to force cash out of existence, with this campaign being led of course, by none other than THE BANKS. As usual, they try to spin it with explanations such as " it will make our lives easier" or the old tried and true excuse of "We the consumers wanted it". Anyone at all, with half a brain, knows that it is all about cutting staff, cutting costs, and increasing profits whilst of course boosting bonuses to board members and top management. I have been around a long time, I have worked in Bank Management and have a better than average understanding of finance. Trust me, no big company does anything because they care about you and I or our wellbeing. No big company wants to help us. Any surcharge is just another way of boosting profits and guiding us in the direction that company wants us to take. Please BIG END OF TOWN, stop treating the ordinary consumer as idiots. WE ARE NOT!!! And remember, without us, your businesses would not exist.
 
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Outright theft I call it. They are already the most expensive service in Australia. With so many choices I'm surprised that people waste their money using companies like this.
 
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What peeves me is we've been paying these bills for 50+ years with no surcharge. Then all of a sudden there is a cheaper more convenient way to pay, so why didn't the govt legislate at the time that if the company wants you to pay online or by card there is a discount, not add a fee to an already no fee service.
 

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