Monday, 22 July 2013

Ruling due on Credit Card Surcharges- who pays?


***AS HEARD ON CBC RADIO****

A ruling due out by Canada’s Competition Tribunal today could permanently change the way Canadians shop.  The government body is looking at allowing retailers to charge customers for using their credit card, especially  premium credit cards that give loyalty points, which retailers say have high transaction costs. They argue credit companies impose unreasonable fees on every credit card transaction and this is making it hard for them to do business. Here are a few possible scenarios in the ruling.

  • MOST LIKELY: Canada’s Competition Tribunal could give retailers the right to reject certain cards, regardless of the company they have the relationship with. For example if the window says we take MasterCard! It won’t mean all MasterCards.
  • UNLIKELY: Canada’s Competition Tribunal keeps fees the same and continues to let the retailers be charged by credit card companies and banks for the transactions.
  • OPTION: Canada’s Competition Tribunal could ask banks and credit card companies to find an alternative to how they charge fees.

 Here is how Canada compares to other nations when it comes to credit card fees

USA – ALLOW “CHECK OUT” FEES IN 40 STATES
AUSTRALIA- LOOKING TO REFORM CREDIT CARD SURCHARGES AFTER MERCHANTS FOUND TO BE TAKING ADVANTAGE
NEW ZEALAND – CAP ON FEES


1 comment:

  1. Clued-up post! Your accepted wisdom is great. Thanks for keep me notify. For more information I will be in touch.

    ReplyDelete