Rogers Communications has announced that a new charge will be introduced in early 2027 for customers who choose to pay their bills with a credit card. This 1.6% “processing charge” is set to commence on January 17, applicable to both auto-pay and one-time credit card transactions. The company clarified that this fee will be incurred each time a customer opts to settle their Rogers bill using a credit card, citing the necessity to cover the expenses imposed by credit card companies.
While the fee will not impact customers in Quebec or those on specific “specialized plans,” including former Shaw Mobile customers transitioning to Rogers following the company’s acquisition of Shaw Communications in 2023, it represents a significant adjustment for other subscribers. Rogers highlighted that alternative payment methods such as direct debit, online banking, cheques, Rogers gift cards, prepaid cards, Debit Mastercard, and Visa Debit are exempt from this new charge.
Retail analyst Bruce Winder anticipates that consumers may reluctantly accept the new fee. He emphasized that companies often seek to reduce costs or enhance revenue streams, with existing customers serving as a straightforward avenue for revenue growth. Rogers attributed the need for the fee to a nearly 40% rise in credit card processing costs since 2020, equating to approximately $150 million annually for the company.
Marvin Ryder, an associate professor of marketing at McMaster University’s DeGroote School of Business, highlighted the escalating transaction fees that businesses incur when processing credit card payments, which can reach up to 3.5% based on the card benefits. He noted the increasing burden placed on companies by these fees, a reality that many consumers may not fully grasp.
In a strategic move, Rogers explicitly communicated the rationale behind the fee imposition, emphasizing that it reflects the costs passed down by credit card providers. This approach allows the company to shift some accountability for the charge away from itself to the credit card companies, potentially mitigating customer discontent.
Telus, a competitor in the telecom industry, had sought CRTC approval in 2022 to introduce a 1.5% surcharge for credit card payments by certain landline phone customers, a request that was rejected by the regulatory body. Subsequently, Telus implemented a similar fee for mobile and home internet customers, only discontinuing it in 2023 following an agreement enabling merchants to directly transfer the cost to customers. Bell, on the other hand, confirmed that it does not presently impose any credit card payment fees on its clients.