Thanks for being a loyal customer of ours!
If you would like to avoid the Non-Direct Debit fee, you can set-up Direct Debit by following the instructions on our Set up, change or cancel direct debit page.
This information would have been in your Critical Information Summary (CIS) when you signed up your plan. You can view your specific CIS by searching your 'Plan ID' here → www.optus.com.au/allcis which can be found on your bill.
I have also marked your post as feedback for the relevant teams to review.
Personally I don't want to pay a fee so I take advantage of the free direct debit payment option Optus provide. What you're asking for is for me to start subsidising your lifestyle choice to not to use the same option?
If anything its the other way around and @Rattler69 is subsidising your lifestyle choice (am mine 😁) as your are the one not currently paying your bpay fee, and @Rattler69 is. Its still costing Optus to process your bpay payment.
If we are talking about the $2.20 non-direct debit fee though, that is just offensive. It's one thing to charge a credit/debit card processing fee when paying manually (i.e. the "true" cost of processing a payment), but to also get slugged $2.20 for not automatically having a payment deducted is just so wrong.
It gave me pause but I don't think other fee payers are subsidising us non fee payers
Realistically the're not, but I prefaced my statement with "if anything" just to show which direction the subsidy would go if there were one.
Optus get several benefits from customers who use the the direct debit process so presumably save more money than it cost to offer that option for free.
I'm guessing the biggest saving from direct debit comes from the cost reductions inherent in bulk-billing/batch processing. And as that is their cheapest processing method then it makes sense for that to be free because telcos are required by law to offer at least on free payment method.
I do find it interesting that people don't consider that there is a payment processing fee on all transactions but Optus offers a free option.
I get why some people don't like direct debit because they are at the whim of 3rd-parties raiding their bank accounts before they even get a chance to dispute the amount.
There should be a manual free option which is bpay by Cheque, Savings or Debit Card, but a lot of people prefer just sticking their bills on credit cards and don't think/worry about processing fees.
Agree the $2.20 fee was excessive (and is now illegal) and thankfully that fee has been reduced to a more representative 40c or so for most customers on a plan around $100 a month.
Really? First of heard of the $2.20 non direct debit fee been declared illegal, but if that the case why is it still mentioned in the CIS's of the current plans?
that fee has been reduced to a more representative 40c or so
Even if it was 1c, its still too much to charge for NOT using a direct debit. A non direct debit fee should not exist period. It is not a processing fee, and they have explicit processing fees to recover costs.
Direct Debitting is no doubt preferencial and beneficial to Optus but I understand the fear some have of stuff ups and deliberate 'unauthorised' withdrawals. I do like Telstra's option of having DD but being able to nominate any amount you like as the max you will accept in any one withdrawal. A lot of people also don't understand you can cancel a DD arrangement anytime you want with your bank.
"BPay by Cheque, Savings or Debit Card" these are all different mechanism's which one would you insist is the "free method" and tell others bad luck? The thing they have in common is an account (which a direct debit arrangement can access). Do note that all other debate aside I have absolutely no problem with a company passing on BPay (in particular) processing fees. (BPay charge Optus to collect money.)
"First of heard of the $2.20 non direct debit fee been declared illegal". Might be a terminology thing. Australia wide companies can't charge more than the actual reasonable cost to process a payment transaction. For BPay, Mastercard, Visa, etc. these costs are below 1%. Optus is actually a fair bit below what most other retailers surcharge now.
"why is it still mentioned in the CIS's of the current plans?"
Its not, there did used to be a "Non-DD Fee" and it was called as such and it was high. They just refer to a "Payment processing fee" which is the single fee designed to cover the cost. They also mention this fee will be waived if you use direct debit.
"BPay by Cheque, Savings or Debit Card" these are all different mechanism's which one would you insist is the "free method"
The free option is bpay, and for Optus bpay accepts non credit based accounts (i.e. Cheque, Savings or Debit Card) as per bpay site.
I do like Telstra's option of having DD but being able to nominate any amount you like as the max you will accept in any one withdrawal.
That's definitely something Optus should introduce.
Australia wide companies can't charge more than the actual reasonable cost to process a payment transaction.
For BPay, Mastercard, Visa, etc. these costs are below 1%. Optus is actually a fair bit below what most other retailers surcharge now.
The cost recovery mandate is basically broken down in two categories 1) credit card processing fees, 2) everything else. Master Card & Visa are fall into the credit card processing category and bpay does not. The reason Optus pays less then retailers in general is because of their transaction volume and negotiated price.
Because Optus chose only debit based payment options for bpay which has lower costs that is no doubt why they made a free option.
Its not, there did used to be a "Non-DD Fee" and it was called as such and it was high.
The CIS for the current $75 Internet Everyday Plan (ID: 33329423) says otherwise
Non-direct debit fee
A $2.20 fee will be charged each month if you choose not
to pay your bill by direct debit. To set up direct debit go to
And the problem with this fee in general is that it has no bearing whatsoever with cost recovery. How can charge you a fee not to pay by one specific method, especially when other methods have their own specific processing fees?
"The free option is bpay"
But BPay isn't free? For customers sure but its actually quite expensive for retailers. Ultimately even people paying cash attracts large costs for Optus. At least with direct debit they get something back for making it free (I agree with your point though that its all the other's who are paying with other methods that are subsidising this free option)
"The CIS for the current $75 Internet Everyday Plan (ID: 33329423) says otherwise"
I did check a few other plans and didn't find that fee. Frankly I don't believe its the case as it would be illegal and Optus recently revised all its payment option inline with the ACCC rules.
Amazing that its made its way onto the CIS document still. I'll ask @Casey_YC to confirm if Optus needs to amend their CIS?