TORONTO – The Retail Council of Canada (RCC) and a coalition of like-minded associations have launched www.StopStickingItToUs.ca, a national campaign against big credit-card companies and the banks that issue their cards that have been imposing skyrocketing hidden credit card fees on all Canadians. The campaign targets the more than $4.5 billion worth of hidden credit card fees paid by Canadians each year.
As Canadians prepare to go to the polls this fall, they will be looking for strong leadership on this issue and the effect [image-nocss] it has on the Canadian economy, the group said.
Over the next few weeks, RCC will be asking small businesses and Canadians to stand up and tell the credit-card companies and the banks to stop "sticking it" to them.
Interchange fees represent an enormous cost for average Canadians and any organization that accepts payment by credit card—merchants, charities, schools, restaurants, hotels, government services and others. The average Canadian household pays hundreds of dollars a year in interchange fees without even knowing it as they are a hidden portion of the cost of virtually every transaction they make, said RCC.
A new poll conducted by Nanos Research on behalf of RCC found that 55% of Canadians had a poor understanding of the fees associated with credit cards, 63% of Canadians believe that credit card fees are increasing with no noticeable increase in value and 77% of Canadians believe that credit-card companies are not fully transparent in explaining their fees for credit cards.
Nearly $2 of every $100 Canadians spend using credit cards goes directly to the big credit-card companies and their issuing banks, said the group. Canada is one of the few industrialized countries in the world that does not regulate these fees, which is why they are among the highest in the world and continue to escalate.
"Big credit-card companies and their banks are taking advantage of local retailers, businesses and all Canadians by exploiting loopholes that keep the true cost of skyrocketing fees from the average consumer," said Diane J. Brisebois, president and CEO of RCC. "Our coalition is seeking government action and will be calling on political candidates to take a stance on what their position on this issue is."
These unregulated and skyrocketing fees are of particular concern in the current period of economic softening in Canada, when consumers and businesses are pressured to be increasingly cost-conscious.
Brisebois added, "Retailers and other business are not opposed to paying fees, as long as they correspond to the actual cost of the service that is rendered. Big credit-card companies and the banks issuing their cards are out of control and their practices need to be regulated."
As an alternative to credit cards, Canadian merchants have long trusted Interac to deliver an efficient, transparent and low-cost debit card system, according to RCC. Now that system is in jeopardy, it said. Interac is planning to restructure in order to become a private/public company like the foreign-owned credit card providers, Visa and MasterCard. The anticipated result: a higher fee for merchants and all Canadians who use debit cards, said RCC.
Stop Sticking It To Us Coalition members include:
Retail Council of Canada Alberta Liquor Stores Association Canadian Booksellers Association Canadian Convenience Stores Association Canadian Council of Grocery Distributors Canadian Federation of Independent Grocers Canadian Jewellers Association Conseil Quebecois du commerce de detail (Quebec Retail Council) Ontario Accommodation Association Ontario Restaurant Hotel & Motel Association Retail B.C. The Hotel Association of CanadaRCC is a not-for-profit, industry-funded association representing more than 40,000 storefronts of all retail formats across Canada, including department, specialty, discount and independent stores and online merchants.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.