Carrier Direct Billing is a charging method that works via your Telephony provider (Optus, Telstra, etc) and applies to digital services. This way of paying for content is very convenient, because you don’t have to send a SMS – just click on the payment button (or subscribe, depending on the service), confirm and the charges will go onto your phone bill.
After clicking to accept the costs, you will receive a free SMS confirming the event and, in case of a subscription, the SMS will be detailing the costs of the subscription, how to end the subscription and a help desk number.
IMPORTANT UPDATE PER JUNE 1ST, 2016
Per the 1st of June 2016, new rules will be in place with regards to Carrier Direct Billing and Subscription Services. Both Telstra and Optus will move into a double opt-in mechanism, and 1 click subscription will no longer be allowed.
In case of a Telstra subscription, a separate window will open where you have to ‘tick’ the ‘I agree to the terms and conditions and accept the costs that will be charged to my mobile phone bill’. The costs are once again detailed on this page, and you can only proceed by ‘ticking the box’ and clicking/tapping on the Subscribe button. In case you accidentally click the green box, another warning will be shown stating that you have to tick the box to agree to the terms and conditions. An accidental subscription is with this mechanism not possible anymore.
The Optus Carrier Direct Billing Opt-in mechanism works similar, however instead of ticking a box, you have to click/tap a second button on a second page that follows after you click the ‘OK’ or ‘subscribe’ button on the first page. This mechanism also avoids accidental subscriptions.