Business Guide on How to Avoid Hidden Fees in Phone Plans
Nothing is worse than purchasing a service at a fixed rate, only to be hit with surprise fees down the line. This is especially true with lock-in contracts, which cannot be cancelled without incurring early termination fees on top of additional costs.
Phone plans are necessary for any business as they open communication lines between customers and internal business teams. A business phone number and accompanying plan are required to secure business contracts, customer satisfaction, and internal operation support.
However, unlimited calls and a lock-in contract should not come with hidden fees. That is why we have created this helpful guide to avoiding hidden fees when accessing a plan for your business phones.
Understanding Your Usual Business Phone Plan Costs
Before addressing the potential hidden fees in landline or mobile phone plans for businesses, we must first understand what costs are expected in a plan.
There are several common costs that most phone plans will incorporate into their monthly payments. These tend to be unavoidable. However, you can often lower the overall costs depending on what elements or features you choose from a phone plan.
This includes the following elements:
Phone Number Type
When choosing a business phone plan from a service provider, you are expected to choose a type of number that suits your customers and your internal operations. The first step to choosing is determining whether your business best suits a virtual local number, a 1300 number, or an 1800 number.
Although each number differs in their call costs or appeal to callers, choosing one over the other in a phone plan tends to not incur any additional costs. Rather, the next stage where the choice of the number’s memorability is made is when a charge is added.
For example, service providers tend to offer three different types of phone numbers under the local, 1300, and 1800 categories:
Free lucky dip numbers tend to add no additional cost to a monthly phone plan as they are generic in their randomisation of numbers after the prefix. Thus, they are not particularly impactful as a marketing strategy to customers in comparison to the other business phones’ numbers available.
Premium numbers often come with a small charge every month due to them being hand-picked for their unique number sequences. The use of double or triple sequence numbers after the prefix tends to make them easier to remember. Such a boost in marketing benefits thus comes with a small fee you will have to pay each month as part of a premium plan.
Memorable numbers are the most pricy phone number type due to their notable success in marketing to customers. Following the prefix, the numbers are either structured in a sequence that is easy to remember, or one that spells out a word relevant to the business. This effectively advertises a business at a reasonable price with the simple inclusion of the phone number in existing campaigns.
Geographical Incoming Call Location
Depending on the type of phone number used for a business, there may be some costs involved with accepting inbound calls from certain locations. Although most business phone numbers are capable of accepting calls nationwide without any additional costs, this does not tend to apply to international calls.
Unless your business has a high amount of customers or suppliers located overseas, there should not be the need to use a phone number that accepts international calls. However, for those that do require to make this business choice, you will need to pay higher phone plan costs. This is to cover the services of your number provider in connecting to the number and directing it to Australia.
So, if you are looking to expand your business into international waters, be prepared to pay extra on the regular.
Call Rates
Regardless of what business phone number you are using for your business, there is a variety in call rates between them. This is because each number offers a unique communication method and a way of covering costs between the caller and receiver.
For example, while a 1300 number can only accept incoming calls and not make any outbound, the caller is still charged the fee for a standard local call. This cost may also vary depending on if they are calling from landlines or mobile phones. However, the cost is also shared with the business, meaning that they will still be required to pay a fee depending on their provider’s rates.
In contrast, 1800 numbers are generally free to call from any landline or mobile phone. Some mobile plans may charge the caller for an outgoing call, but that depends entirely on the provider of the caller, not the business receiving it. Instead, the business covers the entire cost of the call, hence the name of a toll-free number.
Additionally, international call rates also have to be considered when accepting calls from foreign customers. Always be sure to check the caller ID before accepting a call to avoid these charges if you have no interest in incurring international call fees.
Additional Call Features
While most service providers will offer a range of call features with a plan, they may not always incorporate the ones you need most. After all, business needs tend to differ when it comes to internal operations, what needs to be automated, and what customers are looking for from communication efforts.
Thus, you may be required to pay extra on top of your phone plan in order to add on the features your business customers need. This can be an interactive voice response system, call routing, and many more features unique to your number provider.
Take the time to check what features are included in a phone plan before deciding to prevent paying extra.
Types of Hidden Fees on Business Phone Plans to Keep an Eye Out For
Now that we know what costs are standard for a business phone plan, it is time to identify the hidden fees that you should avoid. Some may be hidden in contract small print, while others are only applicable in certain scenarios.
As such, these fees may not always be charged by a plan provider, but it is always best to check before initiating a contract. Otherwise, your monthly bill may come with some unexpected surprises.
1. Late Payment Fees
It is not uncommon for any kind of service, including the provision of a business number, to charge a fee for late payments. When the monthly payment is missed, you will usually be charged a one-time fee at a pre-set rate.
This charge can be easily avoided with prompt payments every time the monthly bill comes in.
2. Charges For Method of Payment
Some providers may charge an additional fee depending on the type of payment method used for the services.
In this modern age, most transactions are done online through a card or service payment. Accepting these payments through specific services can cost providers extra, which is covered by charging the customer for their use of said service.
For example, paying the phone plan with certain credit cards may come with a 2-3% charge on top of what you already have to pay. You can save money on the regular by ensuring you are using a payment method your provider does not charge extra on.
3. Administrative Fees
Phone plan providers may charge you administrative fees on top of the usual plan costs to help cover the work they do on your behalf. This can include gaining right of use for a number from the Australian Communications and Media Authority (ACMA), or general maintenance.
Generally, a provider has to let you know upfront if an administrative fee will be charged for their services.
4. Overcharge Fees
For businesses that do not have unlimited calls or data allowance under their plan, overcharge fees are to be expected if you exceed the limits.
While a common mobile phone plan may offer to slow down data usage instead of stopping services and charging a fee, that is not common for business plans. That is because calls tend to be the focus of these plans, which cannot be regulated like the use of a mobile network. Thus, an overcharge fee is more likely to occur.
5. Roaming Charges
For businesses that need to stay connected while travelling internationally, roaming charges will likely be applied. Always check if your provider supports receiving or making international calls before travelling to avoid these pricey charges.
6. Plan Change Fees
If you desire or need to switch phone plans, there may be a chance your provider will charge you for this change. Even when you maintain the same account with the provider, they may still charge you a one-off fee for the administrative work required internally for the change.
There is a chance the fee will be waived if you are signing up to a plan that costs the same or more. You can always try asking your provider before making the change.
How to Avoid Hidden Fees on Your Business Phone Plan
It is evident that various fees are hidden during your first glance at a business phone plan. While you will not always encounter these charges with a trustworthy provider, knowing how to avoid them can still be beneficial for saving time and money:
Research Business Phone Plans
The first and most important step for avoiding surprise fees on a phone plan is taking the time to research current market options. Knowing ahead of time what will be available in the plan, what costs are upfront or ongoing, and even how customer support will be provided can all help in making the right choice.
So, do not apply immediately for a provider that looks good or is recommended by a friend. Always review the available options and take some time researching how they can benefit your business best before making the final decision.
Avoid Adding On Unnecessary Features or Services
If you know that an additional feature or service is not necessary for your business’s success, it is best to avoid paying extra for it. While it may be tempting to obtain all the call features on offer, just ‘in case’ they are needed later, these extra costs can add up.
Rather, it is better to go with the essentials of what is included in a plan to avoid paying extra. Features can be added further down the line when more revenue has been collected and they have become necessary.
Choose an Unlimited Plan
The best way to avoid overcharge fees or additional call hours is by choosing an unlimited plan in the first place. Excess data charges or calls will not have to be a worry when you know you have unlimited calls and data already available.
Spend less time counting the seconds of a call and more time focusing on your customers with an unlimited plan.
Use Automatic Payment Methods
If you are worried about facing late payment or payment method fees, it may be best to set up an automatic payment to your number provider. When you know what payment option will not incur additional payment fees, or at least a low one, you can set up automatic monthly payments.
There is no need to worry about unpaid bills or late payment fees when an automatic service has been set up. From the moment you start work with a provider, set up the payment to spend more time focusing on important business needs.
Enjoy Business Phone Plans With No Hidden Fees Through Teleca
Avoid hidden fees on your business phone plan outright by utilising Teleca’s forthright and honest services. We pride ourselves on putting businesses first, which is why our eligible plans do not come with surprise fees down the line.
Instead, every cost of our plans is explained throughout the application process to ensure you are informed of your decision to work with us. Alternatively, you can contact one of our helpful staff members to learn more about our plans and what is available for your budget and goals.
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