Alex,

Unlimitel sells a prepaid service and it works exactly like a prepaid calling 
card service. If the prepaid account is empty, the service is suspended. Most 
VoIP provider runs their prepaid service this way. There's no credit allowed 
for any customers using this business model.

But Unlimitel does allow 24 hours for customers to fix issues with credit card 
payments (which you already got since you receive the notice yesterday). 
Prepaid calling card companies do not allow this 24hours grace. We provide this 
24 hours grace at our own expense and risk. Everyone knows a customer can run 
an hefty bill in 24 hours using VoIP, but we do this for our customers.

In cases where customers lost their credit card, our billing rep. always 
suggest to go and purchase a prepaid credit card from your local corner store 
in order to fix your payment issue in the short term. The prepaid credit card 
is very useful in situations like yours and will avoid service suspension.

Our billing department also offer to accept payment from another person's 
credit card and this was also communicated to you.

But if you choose not to purchase a prepaid credit card or use someone else's 
credit card to fix this issue, this is your call and you will have to deal with 
the consequences. This is just unfortunate that you use this forum to complain 
about your credit card issue where Unlimitel offered you temporary solutions in 
the short term to avoid any problems.

I'm sure you run your business the exact same way. You do not ship any products 
to any customers (regardless of their purchase volume) if the payment is 
rejected on the credit card, do you? I purchase products from your company any 
other businesses on this forum and you shipped it after the payment on my 
credit card was confirmed and this is what I expected, nothing less.

Let's educate everyone on this forum. Here's why VoIP providers are using the 
PrePaid business model (not just Unlimitel, but almost every VoIP provider in 
Canada):

1- Between 6% to 10% of accounts do not get paid when you offer post paid 
services or credit to business customers. So for a $5Millions company (not 
Unlimitel case by the way!) this represents up to $500,000 in lost net revenues 
per year.

2- PrePaid services do not require full time staff to handle payments. Again 
for a $5Millions company, this would require about 5 full time staff at an 
average of $40k/employee for a total of $200k/year plus real estate space, 
computers,...

3- PrePaid services are usually fully automated. But for a post paid service, 
the payment process is manual. We also have to factor in the human error factor 
in a few transactions that can run your accountant crazy! There's also the bank 
fees to deposit all the customer's cheques. Bank fees will also increase your 
billing cost. With prepaid credit card, the payments are deposit into the 
business account daily as one payment which reduces the bank fees a lot.

Billing services can cost as much as 15%to 20% of the service in some situation.

With PrePaid services, the customer ends up saving a lot of money, but they 
have to make sure they have a valid credit card with their provider at all time.

Cheers.

Stephan Monette
Unlimitel Inc.

Tel.: 1-877-464-6638
Fax: (613) 482-1077





On 2010-08-03, at 11:38 AM, Kovalenko, Alex wrote:

> Unlimitel is definitely a great company to purchase your VoIP lines from.
> 
> However they called me today to inform me that our lines will be cut if we
> do not pay our $50 bill which has been outstanding for only few days
> immediately by 4pm today. I have explained that my wallet was stolen at the
> gym last week and I should be able to provide them with a new card over the
> next few days (it takes Mastercard - 4-5 business days to get the
> replacement card over). However, Helene told me that they do not really care
> what happened and will cut if not received by 4pm. (Go get prepaid credit
> card - she told me.)
> 
> This is very unfortunate - as I have been with them over 5 years, spent
> thousands of dollars and at www.VoIPGizmos.ca have recommended them to
> dozens of other businesses. Stephane - not very cool way to run your
> business.
> 
> -- 
> Alex Kovalenko, http://ca.linkedin.com/in/kovasys
> Director of Operations @ Kovasys IT Recruitment
> IT Recruitment and Headhunting | Chasseur de TĂȘte en TI
> 888.568.2747 x701 | www.ITHeadhunters.ca
> 
> Read about us in the News:
> http://bit.ly/KovasysNews
> 
> Join our IT Jobs Association Linkedin group:
> http://www.linkedin.com/groups?gid=2464449
> 
> Follow us on Twitter:
> http://www.twitter.com/kovasys


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