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(Sep. 8/08)
Open letter to CRFA members re: rising credit and debit card fees
Canada’s leading business groups have joined forces to fight skyrocketing credit card fees and a proposed restructuring of debit card fees – and we need your help!
Led by the Retail Council of Canada (RCC), this coalition is working together to educate merchants about recent and upcoming credit card rate increases. In just twelve months, credit card companies increased rates for merchants four times, and another increase is on the way in October.
In the coming weeks you’ll hear from your credit card providers about another processing fee increase and new administrative charges that all merchants will have to pay. These charges are associated with recently issued “premium” cards that carry higher fees. Merchants will be required to pay the higher fees with no increase in benefits. The benefits will accrue to cardholders only.
Important information for CRFA members
If you are a CRFA member currently enrolled in the Global Payments plan for VISA, MasterCard and debit, your rates will be affected by the upcoming October rate changes. However, being enrolled in the program does provide you with lower rates then dealing with credit card processors directly. If you are not enrolled in CRFA’s program, we encourage you to do so.
What you can do to help
The coalition is also actively mobilizing its members across the country to demand fair rates from credit card companies. We encourage you to visit www.stopstickingittous.com to sign the online petition about credit card fees. Your response to four short questions will help the coalition build a strong case for fair and transparent rates.
Debit rates could rise, too
Currently, merchants are charged a “per transaction” fee for payments made with debit cards (for example, if you’re a CRFA member, you have access to a low seven cents per transaction fee through our partnership with Global Payments). But that could all change if Interac, Canada’s national debit service, has its way.
Interac has applied to the Competition Bureau to allow for a restructuring that would see the market move to a fee which is a percentage of the transaction size (similar to the model now used by credit card companies). The bottom line for you as merchant? Substantially higher fees with no value-added service.
As an operator, you are being hit on all sides by rising food prices, rising energy prices, rising labour costs and disappearing profit margins. CRFA and other coalition members understand the financial pressures you’re facing and together we are committed to ensuring that your business survives and thrives in these challenging times.
Please take a moment to complete the online survey on the RCC site and if you have any questions about this issue, please do not hesitate to contact CRFA.
Sincerely,
Joyce Reynolds
Executive Vice President, Government Affairs
Related Documents
More information about Credit and Debit Fees
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