Verizon drops proposed $2 fee for online bill payments

Verizon Wireless has reversed its decision to charge a $2 fee for telephone and online bill payments in the face of strong criticism from consumers and the US communications regulator. (See also: Verizon 4G outages seen harming its reputation)

The biggest US wireless operator withdrew the proposed fee on Friday, just a day after announcing its one-time payments plan, which was to take effect from 15 January.

The move follows the recent decision of the Bank of America, which withdrew a $5 monthly fee for debit card users bowing to the ire of consumers and lawmakers who opposed the charge.

According to Verizon, it made the decision in response to consumer sentiments, and after some, threatened to leave the service if the telco went ahead with the fee.

According to a spokesman, the company only intended to encourage consumers to pay their bills via different methods such as autopay, where they gave Verizon permission to charge their credit card or bank account automatically each month.

The quick about turn by the company, which is a venture of Verizon Communications Inc and Vodafone Group Plc, came following a day and more of complaints, but not before the US Federal Communications Commission said it was "concerned" about the fee and that it was looking into it.