Interest fee

CRTC Says Decision on Telus Credit Card Fees Coming in December • iPhone Blog in Canada

According to a report by The Globe and MailThe Canadian Radio-television and Telecommunications Commission (CRTC) is taking a closer look at Telus’ proposed credit card processing fees and has deferred a decision until December.

In August, Telus applied to the CRTC for approval to start charging customers an additional 1.5% on all credit card payments to “recover” processing costs. Telus had initially hoped the fees would go into effect on Monday.

The CRTC was supposed to issue its decision last Wednesday, but Telus’ proposed supplement has met with significant opposition from the Canadian masses. According to a database on the CRTC’s website, the watchdog has received more than 4,300 letters — or “interventions,” as it calls them — from the public regarding credit card charges, most of them negative.

Canada’s telecommunications and broadcasting regulator told Telus in a letter Thursday that it needed more time to consider its request. The CRTC said its decision on the matter could be delayed until December 6.

“At the time of this filing, there are 4,300 public comments. Tariff applications typically attract between 0 and 10 public comments,” the Public Interest Advocacy Center, a consumer advocacy group, said in a Sept. 7 brief.

PIAC reviewed 1,449 of the 4,300 interventions. He revealed that 27% of commenters believed credit card processing fees were aimed at increasing Telus’ profitability, 23% worried that the government would allow telecom companies to overcharge and 21% cited general concerns about the consumer affordability.

Until this month, Canadian businesses were not allowed to pass on credit card processing fees, which average 1.4% for each transaction, to customers. That changed with the culmination of a long legal battle between small businesses and credit card companies. Telus is by far the biggest company to say it would pass credit card processing fees on to customers.

The telecommunications giant responded to the interventions, saying criticism that it was a profitable business was misplaced and that the issue in dispute was whether or not the proposed fees were reasonable.

Last month, Telus argued before the CRTC that charging customers a processing fee for bill payments made by credit card is “fair and reasonable.” Telus said customers can avoid the fee by simply paying with a debit card or through a checking account.

“An avoidable surcharge like the one Telus is offering will both help recover the direct costs imposed on a credit card transaction and incentivize customers to choose to use lower-cost payment methods,” Telus said in a response. filed with the CRTC. . “The goal is not to generate more revenue, but to help contain and recover costs.”

Telus also said the surcharge would help contain costs since transaction fees would no longer be hidden in the company’s prices.