Changes to Auto-Pay Discounts at Telus and Koodo
This morning, Telus updated it's auto-pay discount system.Customers can now receive a $5 monthly discount when they pay with a credit card. If they choose to link their payment to a bank account, the discount increases to $10. Shortly after this announcement, Koodo, which is owned by Telus, made similar changes. It remains unclear if Public Mobile will implement these new terms as well.
Impact on Existing Customers
It's crucial to highlight that these new discounts are only available for new customers signing up with Telus or Koodo. Current users of either service will not see any changes in their billing structure.
Comparison with Other Carriers
Bell is another major carrier that has a similar setup but operates differently. Bell allows payments thru pre-authorized debits only and does not provide an auto-pay discount for credit card payments. Virgin Plus,Bell's subsidiary brand,has not adopted the recent changes made by Telus and Koodo.
Implications of the New Pricing Structure
While this adjustment keeps the lowest pricing options unchanged for both Telus and Koodo customers, it complicates matters for those who prefer using credit cards.Many people use credit cards to build their credit scores or earn rewards points; however, this change makes it less convenient for them.
This update follows an incident in 2022 when Telus tried to introduce a fee for processing credit card payments but faced backlash from regulators at CRTC and later withdrew the proposal. The decision seemed more about protecting sales then adhering strictly to regulatory guidelines.
A Possible Workaround
To avoid losing out on discounts while still using a credit card, one Reddit user suggested signing up for pre-authorized debits first in order to secure the $10 discount and then manually paying off the bill with a credit card just before it's due. While this method could work technically, it may create unnecessary hassle each month.
The Evolution of Auto-Pay Discounts
Auto-pay discounts have been around for several years as incentives encouraging timely bill payments from users. These offers have become quite common among carriers; however, they often replace cheaper plans rather than providing true savings opportunities now tied specifically to auto-pay methods.
while these updates may seem beneficial at first glance due to potential savings on monthly bills through auto-pay options offered by Telus and Koodo—especially compared against competitors like Bell—they also introduce complications that could frustrate existing customers who prefer traditional payment methods like credit cards.
