Credit card surcharges: What you need to know about potential changes
BNN Bloomberg
A pending regulatory decision expected this fall could change how credit card processing fees work in Canada.
Telus Communications Inc. submitted a filing on Aug. 8 to the Canadian Radio-television Telecommunications Commission (CRTC), seeking approval to add a 1.5 per cent processing fee when customers pay their bills with credit cards. The proposed change stems from a class-action lawsuit settled in 2018, which resulted in Visa and Mastercard agreeing to change no-surcharge rules for merchants.
The settlement allows merchants, like Telus, to surcharge consumers paying for goods and services with credit cards up to a cap, according to the CRTC filing. Changes to the no surcharge rules could take effect as early as Oct. 6. The ability to surcharge consumers would allow merchants like Telus to cover processing costs associated with credit card payments.
If approved, Telus will set its credit card processing fee at 1.5 per cent, plus applicable taxes, according to the CRTC filing. Mastercard currently has a maximum surcharge cap of 2.4 per cent, according to a release.
