CRTC prevents Telus from taxing credit card payments
Translated from an original PlanHub article
In a decision rendered on December 8, the CRTC objected to Telus’ 1.5% tax on its customers who pay for their subscription with a Visa or MasterCard credit card. Since October 17, Telus began charging its customers outside of Quebec 1.5% for payments made by credit card. This tax originates from a court decision on October 6, following a class action suit against the banks regarding Visa and MasterCard fees, which allows companies to charge bank fees to their customers instead of absorbing them as was the case until then.
Only Quebec has been exempted from these payments under the consumer protection law, which requires merchants to bear the cost of these charges. Therefore, Telus began charging customers who paid by credit card up to 1.5% in Alberta and British Columbia.
By rejecting this tax, the CRTC intends to warn other operators who would also like to implement this tax for their customers. According to Ian Scott, Chairman of the CRTC:
“We heard Canadians loud and clear: close to 4,000 of you told us that you should not be subjected to an additional fee based on the method you choose to pay your bill. We expect the telecommunications industry to treat Canadians with respect and do better.”
“We heard loud and clear from Canadians: nearly 4,000 of you told us that you should not be subjected to an additional fee based on the method you choose to pay your bill. We expect the telecommunications industry to treat Canadians with respect and do better.”
The fight continues
While Telus was the first to be slowed down by the CRTC, there may be a tug-of-war with the regulatory authority that is not present across Canada. Many internet and telephone providers are beyond the organization’s control and could therefore impose these fees. According to the CRTC, these fees primarily impact people with low incomes who have linked their credit cards to their bill payments. Given that these measures cause harm to the poorest according to the CRTC, the regulatory authority is exploring all avenues to influence operators to stop this practice.
Image Credit: Planhub