"After Bill Credit"

"After Bill Credit"

"After Bill Credit"

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brianyyng
I'm a Participant Level 1

"After Bill Credit"

Does anyone know what "after bill credit" means? I found this beside a discounted monthly fee for an iPhone 11 Plan, however, when I went to review what I had selected before checking out, the Phone's price went up almost $20.

Accepted Solution

Re: "After Bill Credit"

Solved by Moderator

Hey @lisalisa1

 

To explain the charges and credits as you see them on the checkout page, they will be split in 2 parts. The first one being your regular monthly service fees (price plan, add-ons, etc.) - the bill credit.

 

Separately, you'll have the financement portion for the device. Note that they will appear separately on the invoice as well, and that taxes apply to all amounts.

 

So based on your screenshot, you would have the follwing:

  1. $50 MSF - $38.34 bill credit = $11.66+tx = $13.18 (the $1.52 comes from this amount)
  2. Device financement = $1400 / 24 months = $58.33+tx = $65.91
  3. $65.91 + $13.18 = $79.09 (as seen on total)

Hope this helps!

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15 REPLIES 15
Vhjkivvggh
I'm a Participant Level 3

Hello,

 

I got a text with a $10 off per month for the phone that costs $25.

 

I pay $45 for the plan (BYOP). If I use this discount, will I get two separate bills? Such as one bill for plan $45 and another bill with $15 (including promo)? If it is a single bill, does a discount goes against plan or phone price?

 

Thank you Smiley

 

Hello Vhjkivvggh,

 

  Welcome to the community!

 

  If the offer is $15 after bill credit, then the bill credit is applied to the account and does not directly affect the actual monthly financing cost. In your case, the original monthly financing fee of $25 and bill credit of $10 calculates to $15 per month. However, the monthly financing fee does not actually change.

 

  What type of plan do you have? Do you have a subsidised plan? That is, the cost of devices was incorporated into the plan costs (ie Large, Medium, etc). You should note that Fido switched from their subsidised plans to a financed Payment Program. With the new model, the cost of devices is separate from the plan costs. Some of the old subsidised plans are not compatible with the new financed model. I understand they sent you the text offer, however, if you have a subsidised (or BYOP) plan, you might consider verifying that plan is eligible for that offer. To do so, you would need to contact customer service. Alternatively, you might consider sending @FidoSolutions a PM. Once they verify some information, they'll also be able to access your account.

 

Hope this helps 😀

 

Cheers

 

 


Vhjkivvggh
I'm a Participant Level 3

Hi Cawtau,

 

Another question. Can I use bill credit that is applied to my account to pay a monthly bill?

 

Thank you Smiley

Hello again,

 

  To what bill credit do you refer? The $10 bill credit you mentioned above, would automatically be applied to your account. If you are referring to a different bill credit, you might consider contacting customer service to see how that credit might be applied. Alternatively, you might consider sending @FidoSolutions a PM. Once they verify some information, they'll also be able to access your account.

 

Hope this helps 😀

 

Cheers

 


Vhjkivvggh
I'm a Participant Level 3

Thank you for the info Cawtau. It is a BYOP plan that I got back in 2018, I don't really know whethrr it is subsidized or not. I'll give a call to Fido to figure this out. Thanks.

Hello again,

 

  If you got your plan in 2018, that plan would have been under their subsidised model. They didn't switch to the Payment program model until early 2020.

 

Hope this helps 😀

 

Cheers


Jingcao
I'm a Participant Level 1

May anyone from Fido confirm this? is the credit applied before tax or after tax? 

Hello Jingcao,

 

  Welcome to the community!

 

  Firstly, I don't work for Fido. I understand you requested someone from Fido reply, however, I might be able to clarify some things up for you. Secondly, you should note that they changed the way they do their calculations since the OP posted their query (see here) so some of the information in this thread is no longer applicable.

 

  Now, to answer your question, the credit is applied before taxes. I have previously provided the calculations here, here, and here. As noted in those calculations, the credit is applied before taxes are applied.

 

   That said, it's a common misconception that the monthly cost of the phone was reduced. However, you should note that was technically not the case. The device cost shown on the website was calcuated after bill credit. The monthly cost of the phone remained the same but customers were getting a credit on their bill to offset the cost of the phone.

 

Hope this helps 😀

 

Cheers

 

 


FidoAnthony
Moderator

Hey @brianyyng,

 

Welcome to the community! 

 

To answer your question, the "after bill credit" means you are receiving a promotional credit for the duration of your term, applied separately from the original price of the device. However, you mentioned the price went up after checking out. Do you have a screenshot to support this?

 

Let us know!



lisalisa1
I'm a Participant Level 1

I'm having the same issue.

Trying to get a new device: Samsung Galaxy S10 on the 9GB for $50 plan

 

In the initial steps where I chose the phone and plan, the bottom of the screen shows monthly fees to be $50 + $19.99=$70

 

But when I get to the last screen, it shows $50 + $65.91 - $38.34 (promotional credit) = Subtotal $77.57

 

Subtotal + $1.52 tax. Why is the subtotal coming up an extra $7.57/month?Screen Shot 2020-09-07 at 1.57.20 AM.pngScreen Shot 2020-09-07 at 1.58.17 AM.png

Haps_b
I'm a Participant Level 1

Thats 69.99+ taxes so it became the final amout that you see.

Hey @lisalisa1

 

To explain the charges and credits as you see them on the checkout page, they will be split in 2 parts. The first one being your regular monthly service fees (price plan, add-ons, etc.) - the bill credit.

 

Separately, you'll have the financement portion for the device. Note that they will appear separately on the invoice as well, and that taxes apply to all amounts.

 

So based on your screenshot, you would have the follwing:

  1. $50 MSF - $38.34 bill credit = $11.66+tx = $13.18 (the $1.52 comes from this amount)
  2. Device financement = $1400 / 24 months = $58.33+tx = $65.91
  3. $65.91 + $13.18 = $79.09 (as seen on total)

Hope this helps!



musicaljelly
I'm a Participant Level 2

I realize I'm not the OP, but am seeing similar things on my bill and trying to understand them.

 

The math you've done here about applying the credit to the service fee instead of the phone payment makes sense. However, you say $58.33+tx=$65.91. Assuming tax is the usual 5% GST and 7% PST (12% tax total), I'd have expected this to be $58.33 * 1.12 = $65.33. Where does the extra $0.58 come from?

 

Thanks in advance!

 

EDIT: My girlfriend saw the solution I didn't: I assumed the BC tax rate, but the OP is probably in Ontario with a 13% tax rate instead of 12%. And 58.33*1.13=65.91, so the math checks out. Sorry for the poorly thought out question!

Hello Musicaljelly,

 

  Welcome to the community!

 

  Using the numbers from @lisalisa1 's images:

 

Monthly fees: $50

Monthly credit: $38.34

 

Subtotal (not including device costs) = $50 - $38.34 = $11.66

 

GST: $1.52

 

Doing the calculations, taxes are 13% rather than 12%.

 

Ontario's HST is 13%

 

Hope this helps 😀

 

Cheers

 

 

 

 


Hello @lisalisa1,

 

After I ran the numbers this is what is happening.

 

The phone is $58.33 originally but currently, they have a promo making it $19.99 

 

But they are charging us like this $58.33+tax = $65.91 - $38.34 = $27.57 + ($50+Tax $1.52)

We are paying the tax on the full original amount and not the promotion amount then the credit is applied after tax.