GRAND RAPIDS, Mich. — A West Michigan utility company is ending auto-payments using credit and debit cards for customers in October.
With that change, Consumers Energy customers who wish to continue using credit cards or debit cards will face a $2.99 processing fee.
As 13 ON YOUR SIDE first reported earlier this month, customers can still use credit and debit cards for payments if used manually each month. The auto-pay feature for credit and debit cards will stop on Oct. 1.
When customers log into their accounts or visit Consumers Energy's website, they'll see this alert text:
"From the grocery store to online checkout, costs are rising. The same is true for card processing fees. To do our part and keep energy costs fair, we are introducing a card payment transaction fee on Oct. 1, 2023. To comply with credit card company policies after this change, we will no longer be able to accept credit or debit card payments through auto-pay.
Please update your payment method to a checking or savings account soon. Thank you for your understanding."
The utility company is encouraging customers to update payment methods to a checking or saving account to avoid that processing fee.
Consumers Energy spokesperson Joshua Paciorek said the decision to end autopay for credit and debit cards was made in part to save customers money:
"Consumers Energy always works to keep bills fair for the Michigan homes and businesses we serve. Like many companies, we are encouraging customers to use payment methods that don’t incur fees – those fees ultimately are passed on to all customers. This step is one more we’re taking to help reduce the cost of energy for all customers. More than two-thirds of all energy providers take this approach, as do businesses of all types. Ultimately, this is good for all customers as we strive to keep bills low," Paciorek said.
13 ON YOUR SIDE asked the utility company to explain how much of a higher cost it is to maintain autopay versus manually using credit cards.
Here's the response we received: "This change is a result of new policies by credit card companies. Card fees ultimately are absorbed and passed along to all customers. Customer card payments, along with related transaction costs, have increased from 15% of total transactions in 2017 to 35% today. To continue using auto-pay, accounts must be updated to a checking or savings account, which are fee-free. Individual credit or debit card payments with a new processing fee of $2.99 per payment will still be accepted via our website, mobile app or by phone."
You can also pay by phone, by text, by mail and several other ways.
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