In a letter to the
Telus said in a statement Friday that the average cost each month will be about
The
The settlement included
The removal of the restriction allows merchants to potentially recoup processing fees for credit cards that range from as low as around one per cent for basic cards to nearly three per cent for cards that offer rewards such as cash back or loyalty points.
Merchants who want to add a fee for credit cards have to display signage that they have a surcharge, as well as have the fee explicitly shown on the receipt.
The focus on credit card fees has climbed during the pandemic, as more people use credit cards for purchases online, and even small, in-store buys like a drink and a snack that would previously have been made with cash.
Few smaller retailers however, are expected to add the charge, said
"We've been fighting for the power to surcharge really to ensure that the smaller merchants have the ability to negotiate better pricing. But I've never felt that this is a power that most merchants would take up."
He said it's too much of a risk for merchants to lose business in competitive markets, but that's likely less of a concern for some bigger companies.
"I think there is likely to be some take-up and interest on surcharging among oligopolies and monopolies, and obviously the telecom industry would certainly (fall) in that category."
Kelly said he's concerned that the move by Telus might prompt some provinces to impose restrictions on surcharge, as
Smaller businesses have also been hoping to see relief on credit card processing fees, known as interchange fees, from promises from the federal government. The Liberals in 2019 promised to remove interchange fees on the sales tax portion of receipts and made commitment to reduced fees in its 2021 budget, but as of the 2022 budget the government said it was still in "consultations with stakeholders on solutions to lower the cost of fees for merchants."
Federal governments have previously secured reductions from credit card companies. In
Credit card fees in the
This report by
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