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Telus Reiterates 1.5% Credit Card Processing Fee Coming in October • iPhone in Canada Blog

Last month, Telus submitted to the Canadian Radio-television and Telecommunications Commission (CRTC) its plan to introduce a 1.5% credit card processing fee, when customers choose to pay their bills with credit cards. credit.

At the time, Telus said its 1.5% fee would start in October and now it looks like it will come to fruition, as the company previously said.

Telus today sent emails to customers explaining and reiterating the 1.5% fee, according to copies obtained by iPhones in Canada.

“As a valued Telus customer, we would like to keep you informed of upcoming changes to your mobility account,” the email from Telus read.

We have contacted Telus to confirm whether the CRTC has already approved its request or not. It appears that the company is confident that the fee request will be approved.

Telus says that starting Oct. 17, 2022, customers who “choose to pay a bill with a credit card will be charged a 1.5% (plus tax) credit card processing fee.” These fees apply to one-time and pre-authorized credit card bill payments. Telus says it’s no more than the fees it pays to accept credit card payments.

How much will this new 1.5% credit card processing fee cost you? Telus provides the following example: “For example, if a customer in Ontario pays a bill of $100, the 1.5% credit card processing fee would equal $1.50 plus 13% HST of 0 $.20, for a total of $1.70.”

The Telus customer received the email because they are currently set up for pre-authorized credit card payments.

Telus recommends considering “using other payment options” to avoid credit card processing fees, including one-time payments to your bank, recurring bank payments by pre-authorized debit or Visa Debit, Visa Prepaid and Prepaid Mastercard.

Telus says debit payments have ‘benefits’ over credit cards

According to Telus, switching your bank account to pre-authorized debit includes “benefits,” such as avoiding interest rates and credit card processing fees, the ability to suspend your pre-authorized debit payment before the withdrawal and never suffer late payment. fees or processing of recoveries due to an invalid credit card. Sounds scary if you’re not using pre-authorized debit, right? !

If I were a Telus customer, I’d gladly pay the 1.5% credit card processing fee to leverage the power of chargebacks, if the company messes up your bill. Paying by pre-authorized debit means the money comes straight out of your bank account, and it can be nearly impossible to get back once it’s gone.

Telus says prepaid accounts and all customers in Quebec are excluded from its new credit card processing fees.

Last month, Telus said iPhones in Canada in a statement, “These fees help us recover some of the processing costs we incur to accept credit card payments, and the average cost will be around $2 for most customers.”

Interestingly enough, the email from Telus appears to have an incomplete title, as it still uses what appears to be a default title template, reading “lorem ipsum dolor sit amet.”

Whether the CRTC has indeed approved these credit card processing fees, it remains to be seen whether Telus will compete with Rogers and Bell will also attempt to enforce its own fees.

Upcoming Telus charges after credit card surcharge rules change

Telus’ plan to implement credit card processing fees appears to begin just after changes to no-surcharge rules are expected to take effect, possibly as early as October 6. In 2018, a class action lawsuit targeted Visa and Mastercard for credit card processing. costs. The two companies have settled, essentially paving the way for merchants to charge consumers credit card processing fees.

“Beginning October 6, 2022, Canadian merchants will be allowed to surcharge Mastercard credit card transactions, giving them the flexibility to operate their business according to what best suits their needs,” said the Senior Vice President of Communications at Mastercard, Will O’ Connor, at BNN Bloomberg September 9.

In the European Union, credit card processing fees are capped at 0.3%; Telus opts for 1.5%, which is described as too high, according to Ambarish Chandra, professor of economic analysis and policy at the University of Toronto.

John Lawford, executive director and general counsel of PIAC, said BNN Bloomberg, ‘I think it’s going to be a bit of the wild west, we’re going to see some experimentation’, regarding upcoming credit card processing fees, adding that there’s ‘nobody really in charge’ when ‘is to oversee the implementation of fees on consumers.