How does paying by cash or Interac help small business?

Does the card in your wallet cost small business a fortune? CFIB names the names of high cost credit cards in Canada.

Let’s say one day you walked into your favourite neighbourhood restaurant where the owner knows you by name and has for years. But let’s say on this day there is a stranger sitting behind the cash register beside your friend the owner.

....Wait a minute! What’s happening here?

You’re paying the bill, and, without a word, 2-3% of what you pay goes directly in to the outstretched hand of the stranger. No please. No thank you.

But it’s not one day. This is today. Your friend - the favourite chef, reliable drycleaner, or family dentist actually does share the cash register counter with an outstretched hand: Visa, MasterCard, American Express and their partners in the banks.

Every time you pay with a credit card, a percentage of your purchase goes to the credit card company and bank. The more often you pay with a credit card, the more money goes to the credit card companies and banks in the form of transaction fees charged to the merchant... The less income the merchant has available to pay staff, suppliers...sponsor the local baseball team...or even send their own child to summer camp...

...The higher the price you have to pay for your favourite soup or sweater.

The fix is easy, though. Just consider paying with cash or debit. Where ever you can, avoid compelling the independent merchant to pay the credit card companies.

Help small businesses reduce their costs.

Help reduce the pressure on your prices.

Consider paying with debit or cash.

Time line of the credit-debit fight