Stop using credit cards–Small businesses to consumers


Canada, 4th March: A large number of small businesses in Canada have launched a new campaign asking consumers to shun usage of credit cards in the wake of increasing processing fees.

Canada, 4th March: A large number of small businesses in Canada have launched a new campaign asking consumers to shun usage of credit cards in the wake of increasing processing fees.

The move by the CFIB (Canadian Federation of Independent Business) aims to convince customers to either use debit cards or simply use cash as a means of payment.
And it also wants to help in keeping the prices for the small businesses down.

Highest credit card fees in Canada–

It’s being argued that Canada is having the highest fees for credit card in the world and a credit card company earns anything between 1.5 percent and 3 percent from the merchant for each transaction involving usage of credit card.
As per the Competition Bureau, the credit card fees in Canada are nearly double than the fees in Australia, Europe and New Zealand although these are somewhat lower than the fee in the US.
CIFB to promote alternative payment options to customers–

So, the CIFB, as a protest against exorbitant credit card fees in Canada, will provide its 108,000 member businesses signs to be kept at tables and cash registers throughout the nation in a bid to help in the promotion of alternative payment methods.
Dan Kelly, senior vice president of CFIB, said the move will help in spreading awareness among consumers about the huge fees charged from the merchant every time the consumer’s credit card is used.
The amount charged from the merchant for each transaction involving a credit card can be a couple of dollars since it is based on the percentage of total sales, Kelly clarified.
And if the consumers are making use of MasterCard World Elite or Visa Infinite, the latest high cost credit cards, then the processing fees are even higher, Kelly maintained adding that all such costs do add up for owners of small businesses in Canada.
On the other hand, a merchant is charged only 12 cents for each debit card transaction.
Consumers, no doubt, earn a couple of extra points for making use of their credit cards, but, ultimately, it traps them in a situation that results in higher costs for the customers, Kelly concluded.
So, the campaign is the next step in what may be called as the ongoing two-year fight against the rising cost of using credit cards in Canada, Kelly stated.