TORONTO
Rogers Communications will start charging a 1.6 percent fee to customers who pay their bills with a credit card starting Jan. 17, 2027.
The new "processing charge" will apply to both automatic and one-time credit card payments for Rogers and Fido customers, the company said. It will not apply to customers in Quebec, those on certain specialized plans, or former Shaw Mobile customers who migrated to Rogers.
"This reflects the fees we are charged by credit card companies," Rogers said on its website.
In a statement, Rogers said its credit card processing costs "have gone up nearly 40% since 2020" and the company now pays "about $150 million a year in fees." The change "helps us recover our costs," the company said.
Other payment methods, including direct debit from a bank account, debit cards, cheques and Rogers gift cards, will not be subject to the fee.
"If you choose to pay your bill by credit card, it's increasingly common across many sectors for a credit card fee to apply," Rogers said.
Retail analyst Bruce Winder expects consumers will "grudgingly" accept the new charge.
"Rogers I'm sure has done some research and surveys with customers to test the waters to see how customers will react, whether they'll leave Rogers, or whether they will just pay it," he said.
"Companies are always looking to either lower cost or increase revenue. One of the easiest ways to increase revenue is on your existing customers."
The fee comes weeks after Rogers and rival Telus raised wireless plan prices by $5.
Rogers is not the first Canadian telecom to attempt such a fee. Telus introduced a 1.5 percent credit card processing fee for its wireless and home internet customers in October 2022, following a legal settlement that allowed merchants to pass on credit card costs to customers.
The Canadian Radio-television and Telecommunications Commission blocked Telus from applying the fee to its regulated landline services in December 2022, warning it would "explore all available regulatory options" if the practice continued. Telus dropped the fee for all customers in June 2023.
"After thoughtful review, we have removed the Credit Card Processing Fee on bill payments," a Telus spokesperson said at the time.
In 2022, both Rogers and Bell told CBC News they had no plans to add a credit card surcharge. A Bell spokesperson said this week the company does not currently charge clients a fee for credit card payments.
Quebec customers are exempt from Rogers' new fee because the province's Consumer Protection Act bans credit card surcharges.
The fee also applies to Rogers Small Business bills for accounts with nine-digit numbers, but not to 12-digit accounts, Enterprise, Quebec and Shaw Business customers.
Rogers has been steering customers toward bank payments, having recently changed its auto-pay discount to be available only when paid by pre-authorized debit or with a Rogers Bank credit card.
Rogers is scheduled to report its financial results before markets open on Friday.
This story was written by the e2gold.ca newsroom from reporting by CBC News, iPhone in Canada, MobileSyrup and YouTube. Quotes are checked word for word against that reporting.