Optus Sport subscribers who paid an annual fee for the service will soon receive refunds as the streaming platform prepares to shut down next month. However, in a surprising twist, some refunds will be issued via cheque, a method many consider outdated in today’s digital age.
The announcement follows Optus’s decision on June 30 to close its sports streaming service by August 1. This move comes after the company transferred broadcasting rights for the Premier League, FA Cup, and other competitions to Nine Entertainment and Stan. In an email sent to customers on Monday, Optus informed eligible subscribers that they must provide their postal and email addresses by August 29 to receive a refund for the unused portion of their $199 annual subscription.
Cheque Refunds: An Uncommon Practice
Optus’s decision to issue refunds via cheque has raised eyebrows. A spokesperson for the company explained that this approach is being used for a “subset group” of customers due to constraints in their billing and subscription management system. These constraints arise when electronic banking is unavailable, or when credit cards have been cancelled, expired, or failed.
In 2023, the Australian government announced a phased transition away from cheques, citing a 90% decline in their use over the past decade. This gradual shift aims to move towards purely digital payment services. A former Optus customer expressed their surprise on social media, stating,
“Cheque refund @OptusSport … what sort of medieval transaction is this. Haven’t been to a ye old bank for years.”
Government and Consumer Perspectives
In a February 2024 submission to the government’s consultation on phasing out cheques, Optus highlighted scenarios where cheques remain beneficial. These include situations requiring a large volume of payments, especially when original payment methods are no longer viable. The company emphasized that cheques offer a secure way to provide payments without needing to contact customers for updated financial details, an important consideration in the current climate of heightened scam awareness.
The Australian government has set a timeline to cease cheque issuance by June 28, 2028, and to stop accepting them by September 30, 2029. Meanwhile, the Australian Competition and Consumer Commission (ACCC) noted that consumer law does not dictate specific refund methods. However, businesses using cheques should prepare for transitioning to other payment methods in line with the government’s plan.
Expert Opinions on Digital Refunds
Chandni Gupta, Digital Policy Director at the Consumer Policy Research Centre, argues that digital products should have a clear refund path mirroring the original payment method. She stated,
“Placing the onus on individuals to go through extra steps to claim a refund that is rightly theirs creates an unnecessary barrier for someone who has already lost time and money.”
Gupta criticized the additional hurdles for consumers, while acknowledging that such practices are not illegal.
Stephen Nowicki, Director of Legal Practice at the Consumer Action Law Centre, expressed a more nuanced view. He suggested that while cheques might reduce scam risks, customers should have the option for an online refund if preferred.
Looking Ahead: The Future of Payment Methods
The Optus Sport refund situation underscores the broader shift towards digital payment methods and the challenges businesses face during this transition. As the government phases out cheques, companies will need to adapt their systems to ensure seamless and secure digital transactions.
For Optus Sport subscribers, the key concern remains accessing their refunds efficiently. As the August deadline approaches, affected customers are urged to update their details promptly to avoid delays. The situation highlights the importance of modernizing payment systems to meet consumer expectations in an increasingly digital world.
