Montreal's Concordia University will no longer let students pay their tuition using credit cards, a spokeswoman for the institution said Friday.

The university said it's trying to reduce expenses, and credit-card transaction fees cost the school about $1.3 million a year.

"Our key mission is the academic mission, and we do not want that to be negatively affected, so we're really trying to cut corners in every possible way," said university spokeswoman Chris Mota.

She said the university is facing difficult financial times, and it has to be creative about finding ways to save money.

She said students have been informed of the new policy on the internet.

That should give them enough time to find other ways to pay their tuition in the fall, she said.

Dalhousie University in Halifax has also eliminated the use of credit cards for tuition and residence fees as of Sept. 1.

The University of Prince Edward Island recently announced that it would no longer accept credit cards for payment of tuition after July 1, 2010.