Credit Card providers Visa and Mastercard have now given businesses in Canada the right to impose surcharging powers.
This means they’ll be allowed to increases fees on certain purchases to address rising costs.
Canadian Federation of Independent Business (CFIB) President Dan Kelly explains further on this new privilege.
“If you go into a shop and you buy something, a merchant has the power, doesn’t mean that they will, but has the power to perhaps add a one or two percent fee to the transaction if you choose to use your credit card as opposed to paying cash or your debit card.”
Kelly believes some industries will benefit from choosing this option, but he also doesn’t think it’ll be abused.
“It takes an awful lot for a merchant to get somebody into their place of business, and it takes even more to get them to the point of sale. The last thing a merchant is going to want to do is frustrate the consumer the very end of the process, and risk losing the sale to the guy down the street.”
CFIB commends @VisaCA & @MastercardCA decision to allow Canadian merchants to add surcharges for card purchases. https://t.co/UbkuelPgPs
— Dan Kelly (@CFIB) June 14, 2017
In Northern BC however, he says some business owners could consider and has the potential to level the corporate playing field.
“The big guys can get deals on their own, while smaller businesses have struggled in the past with respect to credit card processing fees. The industry is changing, and there is a better balance between the needs of consumers and merchants on one side, and the desires of the credit card giants and banks on the other.”
Specifically, Kelly says it could help rural areas meet some struggling financial needs; the charge would likely take effect on premium versions of credit cards.
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