Every time you pay with a credit card at your local restaurant, drycleaner, craft store, or other business, the credit card company takes a 2%-3% cut. For many small shops, this will wipe out their entire profit margin.
Merchants work hard to earn and keep your business, but when they are forced to absorb this hidden cost, they have to raise prices. Ultimately, the convenience you think you’re getting for free actually comes at a cost.
How can you help? Consider paying with cash or debit. It helps the merchant, and ultimately helps keep prices as low as possible. Even better, you’re reinvesting in the local economy!
It’s your money. You decide where it goes.
Did you know?
Fees to process most credit cards range from 1.7% to 3% of the sale;
Total costs for “premium” credit cards, like Visa Infinite or MasterCard World Elite, are even higher;
Processing fees for a $400 item can be more than 100 times higher with credit cards than debit, and if that item is returned, the merchant has to pay fees on the refund, too;
Premium cards carry even more fees that are completely hidden from merchants until they receive their monthly statements.
The Credit and Debit Card Code of Conduct CFIB was the group that first proposed a Credit and Debit Card Code of Conduct. The Code has protected Canada's low-cost flat-fee debit system and, for the first time ever, provided merchants with some power in their relationship with the credit card industry. The Code's effectiveness has already been tested several times and it has passed on every occasion. We have used the Code to resolve issues on exit penalties for fee changes in processing agreements, debit cards for e-commerce, and better disclosure in merchant contracts and statements. We have since released a report celebrating the many substantial accomplishments of the Code, as well as noting areas for further improvement.