BT is pushing up charges by é4.50 per quarter for customers who pay by cash or cheque.
The increase covers the extra cost of processing payments from people who do not pay by direct debit, the telecoms giant said.
It will offset the rise by dropping line rental by é3 per quarter for non-direct debit customers.
The firm is also putting up its late payment charge from é5 to é7.50.
More than five million BT customers will be affected by the increases when the changes come into force on May 1, a spokesman for the firm said.
Non-direct debit customers who use both BT landline and broadband services will have their rental charge cut by 50p per month.
A BT spokesman said: "Charges for customers not paying by direct debit are standard across the telecoms industry. BT's charges are quite modest compared to other companies."
Karen Darby, founder of price comparison and switching website SimplySwitch.com, said the new charges could rake in up to é99 million per year for BT.
"Instead of rewarding customers who switch to direct debit, BT has decided to penalise those that don't," she said.
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BT adds surcharge for cash customers
February 07, 2007

Showing comments 1 to 7 and replies | View All
Sid Armfield, Manchester (07/02/2007 at 14:32)
peter, salford (07/02/2007 at 20:50)
Gregory Happy, Manchester (08/02/2007 at 09:11)
Wise Owl, Dukinfield (08/02/2007 at 10:14)
We had no telephone or internet for weeks when they removed a telephone pole on our street I hope they are taking two weeks line rental off too. Thankfully we have mobiles but it made me realize how many annoying pestering phone calls we normally got when the phone was working.As it was amazingly quiet.
Ace Riley, manchester (08/02/2007 at 13:16)
PW, Manchester (08/02/2007 at 16:20)
Clarets User, Rossendale (13/03/2007 at 12:23)