Home - , , - Lycamobile Adding a $1 or 5% Recovery Fee to All Plan Prices

Lycamobile Adding a $1 or 5% Recovery Fee to All Plan Prices

T-Mobile MVNO Lycamobile is now adding a 5% "Recovery Fee" to all airtime purchased directly from Lycamobile. The 5% fee also applies to auto pay. For airtime purchased from Lycamobile dealers or online PIN sellers the fee is a flat $1 per top up regardless of the amount of the top up.

According to Lycamobile's Terms and Conditions page,  "All website purchases, including auto-recharges, will be assessed the Charge, which are currently set at a flat rate of five percent (5%). These Charges are not mandated by law, but are collected and retained by Lycamobile in whole or in part. The components and amounts of these Charges are subject to change without notice. The Charges include, but are not limited to charges, costs, fees and certain taxes Lycamobile incurs to provide Services (and are not government taxes or fees imposed directly on our customers that we must collect by law)." In other words, this is a price increase rather than a new tax.

Charging a recovery fee is a sneaky way to raise prices while still advertising a lower price. It's a gimmick that seems to be gaining popularity with MVNOs. The TracFone brands which have been adding 1.7% in fees to auto payments and airtime purchased from their web sites for years. In 2014, Ultra Mobile added a $1 per top up recovery fee to all their plans. Other MVNOs charging regulatory or recovery fees include Tello, Project FI, Chit Chat, TPO, Consumer Cellular, Ting  and Pure TalkUSA.

If you are a Lycamobile customer looking to save a little, the $1 flat fee that third party sellers are collecting is less than the 5% that Lyca itself is charging on top ups larger than $20. The new fee went live earlier this month and most of the online PIN sellers I checked  have already added the $1 fee to Lycamobile PINs and direct top ups. One PIN vendor I've found that hasn't raised Lycamobile prices yet is Callingmart.com which is still selling Lycamobile refills at face value. Plus you can get 3% off Lycamobile airtime priced at $19 or higher using promo code ca3p-1207 at Callingmart.

For more about taxes and fees on prepaid plans see our  post  Making Sense of Taxes on Prepaid Cell Phone Plans and Airtime post.

15 comments:

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  1. Lyca hasn't been relevant in years.

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  2. Their prices and plans arent competitive in the least

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  3. As soon as my Lyca balance runs out the SIM goes in the trash.

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  4. On the Pure Talk USA 500~750 minute six month upwards sliding grandfathered plan (Senior addvantage) never been directly charged a regulatory nor a recovery fee. In fact my plan price recently went down from $12.95 per line to $11.66 after the recently introduced 10% two line discount.

    Dale

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    Replies
    1. Pure Talk started charging taxes and fees sometime last year. Customers active before the change are grandfathered and exempt from taxes and fees.

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    2. Mr. Bournique, are the taxes and fees inclusive to "all" plans?

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    3. No, new users on all Pure Talk plans are subject to taxes and fees. Users who activated their plans before Pure Talk started charging taxes and fees are grandfathered and do not pay any taxes or fees.

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  5. Dennis, in my case it states taxes plus service. In no way does it specifically say fees. Is a tax a few? Absolutely but the wording only says taxes.

    Thanks for hosting the site. You've saved more than a few people a ton of money through it.

    Dale

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    Replies
    1. I understand what you by taxes plus service. I though you said Pure Talk wasn't charging you any taxes or fees.

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  6. Junk. MVNO games and becoming more of a nuisance than anything else.

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  7. That extra fee from Tracfone is particularly insidious. Don't they end up keeping MORE of my payment by selling it to me through their own website than they do by paying a cut to the store where I would buy my Tracfone card? Why do they need to charge me extra?

    For 6 years I have faithfully bought the Tracfone cards at stores and, only last week, for the first time, renewed through their website. That's when I discovered the extra fees for paying through the website.

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  8. 1994 sounds like a typo :-)

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    Replies
    1. Corrected to 2014. Thanks for letting me know,

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  9. Lycamobile doesn't know how to compete. I have switched from Lycamobile to RedPocket Mobile on July 4th and getting the same service for $17 per month with no added fees and taxes. https://www.amazon.com/Red-Pocket-Mobile-Contract-Unlimited/dp/B01D50H0W2/ref=sr_1_4?ie=UTF8&qid=1502600267&sr=8-4&keywords=red+pocket+mobile Visit this site and switch to RedPocket mobile today

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  10. Lyca is only good for pay as you go. My $10 top up has lasted over a year.

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