RCC, the association that speaks for and represents the merchant community in Canada, has been at the forefront of this issue and [image-nocss] looks forward to actively participating in this important inquiry and working with the committee to determine the impact of the fees charged to Canadian merchants and consumers by credit card companies and banks issuing their cards.
"At a time when many Canadians are struggling and businesses are challenged to decrease costs while still providing value to their customers, the fees charged by credit card companies and the banks that issue their cards are increasing at an unprecedented rate," said Diane J. Brisebois, president and CEO of the RCC. "Our merchants are encouraged that the Senate sees this as a priority issue and that it will move forward to investigate the industry and provide recommendations that will help protect all Canadians."
The fees charged to merchants for accepting credit and debit transactions represent an enormous cost for average Canadians and any organization-small businesses, retailers, charities, schools, restaurants, hotels, government services and others-that accepts payment by this method.
Merchants and others are not opposed to paying fees, but the costs need to reflect the services provided. The fees retailers, restaurants, charities and others pay the big credit-card companies and the banks issuing their cards are among the highest in the world, exceeding 2%. That means that a $100 purchase costs small businesses $2 or more, which goes directly to the card companies and their issuing banks.
Compare that to a small business in Australia that is charged about $1 on the same $100 transaction, or in the UK where they pay 79 cents. In these and other countries, governments have acted to curb high card costs.
Dozens of countries around the world, including the United States, Australia, Colombia, Hungary, Romania and Spain, are investigating the card companies' fee practices.
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