"After Bill Credit"

"After Bill Credit"

"After Bill Credit"

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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.

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Re: "After Bill Credit"

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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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8 REPLIES 8
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way they do their calculations since the OP posted their query (see here) so some of the information in this thread is no longer applicable.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

 

 


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!



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

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!



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.