CRTC Says It Will Need More Time to Process a Telus Request to Add Credit Card Surcharge

A woman walks past the Telus head office in Toronto on Feb. 11, 2021. Frank Gunn/The Canadian Press

The Canadian Radio-television and Telecommunications Commission (CRTC) has said that it will need more time to process a request made by Telus to add a surcharge when it receives payment by credit card.

Telus had wanted to begin implementing its 1.5 percent surcharge on Oct.17. The company first applied back on Aug. 8. Now, CRTC is telling Telus that it may need to wait until Dec. 6 before its final approval, longer than its initial estimate of 45 business days.

In August, Telus told The Canadian Press that the average cost per customer would be about $2 per month. It said the fee is no higher than what it pays in service credit card payments, and proposed alternatives such as pre-authorized bank payments, Visa Debit, or prepaid credit cards if people want to avoid the fees.

Class Action Settlement

A multi-million-dollar class action settlement allowed businesses to start adding a surcharge on credit card transactions beginning Oct. 6, 2022.

Before the lawsuit, banks would not allow businesses to charge credit card fees because it would deter people from using them.

The settlement gives businesses that had to pay credit card fees in Canada between March 23, 2001, and Sept. 2, 2021, an opportunity for reimbursement in lost fees.

“The power to surcharge will allow merchants to address their rising operating costs, push back against future credit card fee hikes and keep their prices competitive,” said Dan Kelly, president of the Canadian Federation of Independent Business (CFIB). He noted that surcharges could cost businesses up to 2.5 percent of each sale.

Will Small Businesses Add Surcharge?

“Most smaller merchants are still on the fence or don’t plan to surcharge as they don’t want to risk losing customers. However, it’s important for them to know they will have this option,” said Corinne Pohlmann, senior vice president of national affairs at CFIB.

“With mounting pressures small businesses are facing due to inflation and government-imposed costs, surcharging is another way to reduce their cost burden,” said Kelly.

“Small businesses have long been dealing with expensive credit card processing fees and trying to find ways to absorb the cost of accepting premium cards without the ability to surcharge or refuse those cards,” Pohlmann said.

According to a CFIB survey, 19 percent of small businesses were considering a surcharge, 26 percent said they would add a surcharge if their competitors do, 40 percent said they are not sure yet, and 15 percent said they would not add the surcharge.

The Canadian Press contributed to this report.