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Are You Being Over-Charged For Your Business Phone System?

Struggling with seemingly endless charges from your business phone system? Do you dread sifting through your phone bill every month? Frustrated with taxes and fees that have no clear explanation?

Confusing Fees

Even if you receive a brief rundown of these charges, it can still be confusing. Why do certain fees fluctuate so dramatically with each new statement? This unpredictability makes it incredibly challenging to effectively plan and manage your monthly expenses. In the end, you feel anxious about your financial commitments.

Beware Hidden Fees

While this situation can be exasperating, have you thought about whether your business phone system provider might be consistently overcharging you? Many businesses unknowingly fall prey to hidden fees or outdated charges. These charges can accumulate unnoticed over time. It’s vital to analyze your bill line by line. Look at every charge to ensure you aren’t falling victim to unnecessary costs. By taking the time to analyze your billing statements and understanding the true cost of your service, you can reclaim control over your finances and avoid the pitfalls of unexpected expenses.

Compare and Beware!

Understanding and comparing prices from different business phone providers can often be challenging. Typically, you won’t know your actual monthly cost until you receive your first invoice. However, that’s not the case with Carolina Digital Phone.

Our phone quotes are completely transparent, detailing all costs. You can trust that your monthly bill will always match the price listed in your quote unless you choose to make changes to your account. You won’t find unexpected charges or hidden fees on your bill, guaranteed!

Watch out for Bill Cramming

Chances are good that you’re currently paying extra fees, taxes, and usage charges every month. You may have been paying too much for years. This trend is so widespread that the FCC has given it a term: bill cramming. Here is what the FCC says:

“Deception is the hallmark of cramming. Crammers often rely on confusing telephone bills to trick consumers into paying for services they did not authorize or receive, or that cost more than the consumer was led to believe.”

Uncovering the Common Culprits Behind Your Overcharges!

Different business phone system vendors present their bills in various formats—some longer and some shorter. Look out for those that charge customers unexpectedly, including certain line items. Keep in mind that these may be labeled differently on your business’s monthly bill. In the end, they essentially refer to the same charges:

“Regulatory Recovery Fee”: Over-Charged?

Who regulates this fee, and what exactly is recovered? It sounds like an overcharge to us! These are the questions your vendor hopes you won’t ask for a clear, honest, and verifiable answer. That’s because there likely aren’t any. Vendors charging regulatory recovery fees are just taking your money and lining their pockets.

“Regulatory, Compliance and Intellectual Property Fee”

This may seem necessary, but it’s not. Why should customers cover the expenses for a supplier to act in line with regulations and stay compliant? These costs should fall on the vendor, not on the clients!

“Federal Universal Service Fund (USF)”

The FCC collects USF contributions for many reasons. This includes bringing high-speed internet to rural areas and supporting underserved communities and libraries. Pretty noble, right?

That’s the bright side! However, vendors don’t have to pass this fee on to their customers. Of course, most of them do anyway. It’s like a surprise fee in your pizza delivery—extra cheese and a side of confusion! Luckily, we’re not playing that game. No sneaky charges here!

“County and State Sales Tax”

When it comes to government regulations, it’s important to note a few things. VOIP vendors are not required to charge county or state sales tax on monthly fees. In Greensboro, NC, 6.75% is the minimum tax rate. This means you may be paying unnecessary charges each month. This could result in hundreds or even thousands of dollars in excess fees each year that you shouldn’t be paying.

“North Carolina Telecommunications Sales Tax”: Over-Charged?

Here’s the scoop: if you’re running your business in another state, you might see something fancy on your bill called the [State] Telecommunication Sales Tax. Sounds official, right? But there’s no law saying vendors must pass this tax on to their customers. We don’t and trust us, we’re not hiding it under the sofa cushions either! But hey, it’s a safe bet that most businesses will slap it on your bill like it’s a topping on a pizza. Extra cheese? No thanks!

“Miscellaneous Fees”: Over-Charged?

Do you have one of those “miscellaneous” drawers in your basement or workshop where you toss everything that doesn’t fit anywhere else? You know, the place where lost batteries and old receipts go to hibernate? Well, some vendors have their own version of that—it’s called “miscellaneous fees.” It’s a sneaky way to charge you extra, like they’re reaching into your wallet and saying, “Surprise! You didn’t know you were paying for the privilege of our ‘mystery fees,’ did you?” Classic cash grab!

“E911 Tax”: Over-Charged?

We need to shift our focus regarding this line item. The taxes for E911 are valid and should be included on invoices and new service quotes. These taxes help fund E911 services at both the state and local levels.

However, some vendors charge significantly more for E911 than necessary, and many customers don’t realize they are overpaying. For instance, at Carolina Digital Phone, we only charge $1.50 per month for E911. In contrast, other phone providers may charge 300-500% more, not because it costs them extra to provide the service but simply to increase their profits.

E911 and Information Services Fee”: Over-Charged?

What does it mean if you see something like E911 and Information Service fees on your bill in addition to the E911 tax? Yes, you guessed it: it means that your vendor is dinging you for something that you 100% are not required to pay. The money that the vendor collects does NOT go to support state or local E911 services. It goes to support the vendor’s profit. 

“Regulatory Recovery Fee”: Over-Charged?

This fee is like the surprise guest at a party—you didn’t invite it, but here it is, ready to crash. It’s meant to help vendors recoup the costs of playing nice with FCC regulations, like hiring lawyers and filling out forms. You’d think it’s a government must-do, right? Nope! It’s entirely up to vendors whether they soak up these costs themselves or elegantly slide them over to their customers—perhaps with a wink and a “this is just how it goes.” Who knew compliance could be so profitable?

The Bottom Line

At Carolina Digital Phone, we do not participate in “bill cramming,” which can lead to overcharging. Our pricing is transparent, consistent, and completely legitimate. We do NOT impose any hidden or extra fees, nor do we charge sales tax. For many of our customers, this alone saves them thousands of dollars each year, in addition to the savings from our hosted phone system.

For instance, we offer unlimited usage along with 150+ enterprise-grade features and a free mobile app for as little as $20 per month per user. In comparison, some other vendors charge $50 per month or more and add various unnecessary fees on top. Some even nickel-and-dime you for features, which is like buying a car and then being told you have to pay extra to use the windshield wipers or turn on the air conditioner!

**Stop Overpaying—Learn More Today!**

Are you curious about how much your business could save with Carolina Digital Phone? Contact us now for a free, no-risk, and no-obligation consultation. We can review your current bill line-by-line, helping you understand exactly what you’re being charged and whether you’re paying too much.

Call us at (336) 544-4000 or chat with us during business hours by clicking the chat icon at the bottom of your screen. We are a local business based in Greensboro, North Carolina, with over 100 five-star reviews!