Telus to introduce intercharge fee for customers outside Quebec

Customers who wish to avoid the fee may resort to (e.g.) visa debit or paying via their bank. Telus filed the request to charge the fee with the Canadian Radio-Television and Telecommunications Commission (CRTC) in August 2022. The regulator is yet to approve the application, but the company has already communicated to its customers the imminent introduction of the fee. Canadian media outlet, iPhone in Canada, suggests that ‘it seems the company is confident the fee request will be approved.’

The fee is possible due to the outcome of a 2018 class-action lawsuit mounted against Mastercard and Visa, which allowed merchants the power to charge credit card fees to customers.

The measure will take effect from 17th October 2022.

Credit card transactions in the North American political sphere

Credit card fees are a salient topic in Canadian politics. In 2019, the Liberal Party in Canada committed to scrapping interchange fees on the sales tax portion of receipts, and stated in its 2021 budget that it would lower fees. The government stated in its budget this year that it would continue ‘consultation with stakeholders’ regarding the matter.

Credit card transactions are also an issue of concern for politicians elsewhere in North America. This week, two American congressmen introduced to the US House of Representatives the bill for the Credit Card Competition Act (the bill complements that already introduced in July in the Senate). The act, which aims to broaden the choice available to customers for processing credit card transactions, would require the largest US banks offering Visa and Mastercard credit cards to offer at least two other unaffiliated networks for the processing of transactions. It seeks to reduce the domination of Visa and Mastercard in this sphere, with credit card swipe fees having shot up 33% in the first half of 2022 in the US.

Telus’s recent activity

Last month, Telus reported glowing second-quarter results, with revenue standing at USD 624 million (a 17% jump from last year), and a net income of USD 56 million, a leap from USD 16 million in the second quarter of last year.

This month, Telus Corporation concluded the expansion of Telus Health with the acquisition of LifeWorks, which provides solutions to support the overall wellbeing of individuals. The acquisition made Telus one of the largest companies offering health and wellness services.

Research by Rewheel called out Telus for being among the operators with the least competitive monthly prices in 2020. Other names highlighted on the list included Bell and Rogers Canada.