Verizon, T-Mobile Discounts May Compromise Your Bank Account
Mobile Phone Service Providers Offering Discounts in Exchange for Access to Bank Accounts
In recent days, various mobile phone service providers have been enticing their customers with discounts. However, as the old adage goes, there’s no such thing as a free lunch.
These companies, including Verizon, T-Mobile, and AT&T, are offering deals that require customers to link their bank accounts instead of their credit cards to their accounts, according to a recent report from The Wall Street Journal.
Verizon has been offering $40 discounts on four-line plans, T-Mobile has threatened to remove discounts if users don’t switch to direct bank account payments, and AT&T has announced that customers who don’t switch will lose their discounts as well.
These notifications have even been received by employees of The Journal itself.
Why Do Companies Want Access to Your Bank Account?
The main reason is to bypass credit card companies like Visa and Mastercard and avoid their rising transaction fees, as reported by The Journal. By receiving payments directly from bank accounts, service providers can cut out the middlemen.
Customers who pay promptly and are less likely to switch providers are preferred by these companies.
While most Americans, around 85 percent, may feel comfortable with this change, there are reasons to be cautious.
T-Mobile, for example, has experienced multiple data breaches in the past. In January, hackers stole the data of 37 million customers, although sensitive information like credit card numbers remained secure, according to The Journal.
Considering this, it’s important to question whether it’s wise to provide banking information to companies with a history of data breaches. Who’s to say that hackers won’t gain access to your bank account in the event of another breach?
For the 15 percent of Americans who don’t feel comfortable with direct payments, paying a few fees here and there may be a small price to pay for peace of mind.
Source: Verizon, T-Mobile Discounts Are Being Used to Get Access to Your Bank Account
Originally published on The Western Journal.
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