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T-Mobile is facing customer backlash after announcing it will end a loophole that allowed users to claim its $5 autopay discount by paying via credit card under certain conditions.
Historically, T-Mobile offered a $5 per line monthly discount to subscribers who set up autopay. After officially removing credit cards as an eligible payment method for the discount in 2023, some users found a workaround: They would update their payment method to a bank-account-based autopay (which qualified), then pay early with a credit card, thus retaining the discount. T-Mobile says the loophole is now closed. As of October 24, customers who pay early using a credit card will forfeit the discount for that billing cycle.
The carrier cites mounting credit-card processing fees as a key reason behind the change. According to data referenced by T-Mobile, swipe fees for Visa and Mastercard credit cards rose from $100 billion in 2023 to $111.2 billion in 2024, a year-over-year jump of more than 10%.
Reactions from users have been swift and sharp. On Reddit and other forums, long-time subscribers said they feel the move undermines their trust in T-Mobile’s pricing promises.
“Well, there goes the free phone insurance that comes with my Amex Platinum, which will now cost me $35/month”, wrote one customer.
Another worried: “So my bill is going up $40 a month? For…. the privilege of paying them? Lmao, what a bad joke.”
This change comes amid a broader wave of adjustments by T-Mobile—including price hikes on legacy plans and fee increases—occurring as the company transitions leadership with CEO Mike Sievert slated to step down on November 1 in favour of Srini Gopalan.
For customers, the lesson is clear: What once seemed like a reliable discount may no longer be. For the carrier, it’s a recalibration of incentives amid tightening margins and rising costs. Whether the goodwill cost is worth the savings remains to be seen.
