Tag: credit card fee

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Mobile Syrup

CRTC rejects Telus credit card fee, but you’ll still pay it

The Canadian Radio-television and Telecommunications Commission (CRTC) says it rejected Telus’ request to add a credit card processing fee to customers’ bills when they choose to pay by credit card while also admitting it can’t really stop Telus from doing it.

In a news release published on December 8th, the CRTC confirmed it rejected the processing fee request but that it only applied to services regulated by the CRTC, “which are generally home telephone services in certain smaller communities.”

“While Telus didn’t need the CRTC’s approval to add the surcharge to its unregulated services, the CRTC is very concerned about this practice as it goes against affordability and consumer interest. In addition, this practice impacts the most vulnerable consumers who rely on credit cards to pay their everyday bills, especially when prices for essential goods and services are rising due to inflation.”

The CRTC said it was sending a “clear message” to Telus and other telecom companies and said it would “explore all available regulatory options” if the practice continues.

Moreover, CRTC chair Ian Scott said the commission expects “the telecommunications industry to treat Canadians with respect and do better.”

Telus filed the credit card fee request with the CRTC in August, which sparked an influx of angry responses from Canadians frustrated with the telecom for adding another fee to already expensive bills. In September, Telus customers received emails from the company warning about the incoming fee, which would apply starting in October. The fee added a 1.5 percent (plus tax) processing fee to customers’ bills if they chose to pay with a credit card. Telus also filed a response with the CRTC defending the plan as interventions from Canadians passed 4,000.

Telus opted to add a credit card processing fee following the results of a lawsuit that, starting on October 6th, 2022, allowed Canadian businesses to apply processing fees for credit card transactions. However, Quebec’s Consumer Protection Act prohibits these kinds of charges, which means Telus customers in Quebec don’t have to worry about the fee (at least, they won’t until Telus manages to change the act through lobbying).

Meanwhile, Rogers confirmed to MobileSyrup in October that it had “no plans to move ahead with a fee like this at this time.” Bell didn’t respond to MobileSyrup’s requests for comment on the matter.

Source: CRTC

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Mobile Syrup

CRTC may need until December to issue decision on Telus credit card fee

The Canadian Radio-television and Telecommunications Commission (CRTC) says it may take until December to complete its review of Telus’ application to add a credit card surcharge to customer bills.

The CRTC detailed the delay in a letter to Telus last Thursday after the commission’s previous 45 business-day deadline had passed. However, the letter does not appear to be available on the CRTC website yet, with details only made available via a Globe and Mail report so far.

Specifically, the CRTC said it may need until December 6th to complete its analysis in part due to the high number of public comments. There are currently over 4,300 interventions, many of which raise concerns about affordability and high prices.

Telus first filed the application in August and has since filed a response with the CRTC defending its decision to add a credit card surcharge, calling the fee “just and reasonable.”

It’s also worth noting that the application only applies to a small subset of Telus customers and that the provider doesn’t need approval to apply the fee to the majority of its customers. Last month, Telus emailed customers about the incoming change with ‘Lorem ipsum’ filler text, sparking an angry (and humourous) outcry on social media.

The credit card fee debacle traces back to the result of a lawsuit against credit card companies. Credit card companies previously included clauses in agreements with merchants to prevent this, but the lawsuit enables businesses to pass these fees on to customers.

So far, Telus seems to be the only one of the Big Three Canadian carriers planning to implement credit card processing fees. Rogers told MobileSyrup that it has no plans to add a fee “at this time,” while Bell hasn’t indicated one way or another.

Source: The Globe and Mail

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Mobile Syrup

Telus emails customers about incoming credit card fee before CRTC decision

Telus recently customers started receiving emails warning about the incoming credit card fees the carrier wants to add to customer bills. Except, the email included the common placeholder text “Lorem ipsum dolor sit amet” in the header. Whoops.

The mistake seems to have drawn further attention to Telus’ plan to start charging customers 1.5 percent of their payment amount (plus tax) as a credit card processing fee.

Unsurprisingly, people are mad and tweeting about the fee and the Lorem ipsum gaffe:

“As mentioned on your last bill, starting October 17, 2022, customers that choose to make a bill payment with a credit card will be charged a 1.5% Credit Card Processing Fee (plus tax). The Credit Card Processing Fee applies to one-time and Pre-Authorized Credit Card bill payments, and is not higher than the fee TELUS pays to accept credit card payments,” the email reads.

The email goes on to list alternate payment methods for customers who want to avoid the fees, such as pre-authorized debit, visa debit, and paying through your bank.

Telus filed a request with the Canadian Radio-television and Telecommunications Commission (CRTC) in August to add the fee to customer bills. However, the fee saw a significant number of interventions from the public, and the CRTC ultimately said it would issue a decision within 45 days. September 29th would mark day 45, so it’s likely we’ll see a decision from the CRTC on the matter soon.

Whether or not the CRTC sides with Canadians or Telus is another matter. Should the CRTC allow Telus to add the fee, it may encourage other telecom companies to do the same, effectively forcing Canadians to stop paying their cell bill with credit cards, or eat the higher fee.

This whole thing stems from a lawsuit against credit card companies like Visa and Mastercard that gave businesses the ability to pass on credit card fees to customers. Previously, credit card companies had rules preventing businesses from doing so. While good for businesses, it, unfortunately, means customers are likely to end up footing larger bills if they use credit cards.