Tutor
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5 Messages
Penalty for giving you more business
I recently purchased a new IPhone and renewed my 2 year contract. And for this offer to give AT&T more business I was assessed a $40 penalty as a processing fee. How is this justified? Is not my monthly 2 year commitment enough? Is not my monthly data plan for 2 iPads enough? Is not my monthly Uverse subscription enough? What exactly is another $40 applicable towards ? Please explain, if you can.
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MicCheck
ACE - Expert
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14.1K Messages
10 years ago
Fees charged are not a penalty. AT&T (and every other provider I'm aware) charges an upgrade if you choose to upgrade your device. You can avoid upgrade fees by not upgrading, using the Next program, or purchasing a phone outright.
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Rob7416
Tutor
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5 Messages
10 years ago
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kdfederer
ACE - Expert
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13.1K Messages
10 years ago
The upgrade fee is the charge for paperwork for a new contract. Almost all of the cell providers have an upgrade fee. If you want to upgrade, you have to pay the fee.
I think that it would be better if they just added the charge to the phonein the first place, no one would care. Customers only see it as another "fee".
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21stNow
Professor
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2.7K Messages
10 years ago
It's similar to shopping clubs (like Sam's and Costco) that charge a fee to shop there for the privilege of the lower prices that are offered. As others have stated, if you don't take the discount on the device, you don't have to pay the upgrade fee. If you want AT&T to give you a discount on the device, you have to pay a fee for the privilege.
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Rob7416
Tutor
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5 Messages
10 years ago
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MicCheck
ACE - Expert
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14.1K Messages
10 years ago
Why is there another $40 assesed? Because that's how much the upgrade fee is.
I'm not sure what other answer you're looking for.
" If it's not a penalty then is it a surcharge for AT&T to accept more money from me?"
Welcome to capitalism!
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Rob7416
Tutor
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5 Messages
10 years ago
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GLIMMERMAN76
ACE - Expert
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23.9K Messages
10 years ago
did you get new equipment on contract? Yes you did. Then you UPGRADED your phone to a new one. When you signed the paper work that fee was right there in your face.
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Rob7416
Tutor
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5 Messages
10 years ago
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21stNow
Professor
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2.7K Messages
10 years ago
Speaking for myself, I'm not on "retainer" with AT&T. I don't like the upgrade fee myself, but I don't pay it because I buy devices at full price upfront. I don't do this to avoid the upgrade fee, but it is a nice perk since I am not using AT&T to get a discount on the device anyway.
You pay $40 to save ~$400. Most people wouldn't call that a bad deal.
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