13°c A few clouds
6°c Clear
Winnipeg Free Press - PRINT EDITION
Fees on premium credit cards must be held down, NDP urges
RYAN REMIORZ / THE CANADIAN PRESS ARCHIVES The hospitality industry says credit-card companies make more profit on a meal than a restaurant. (CP)
OTTAWA -- The federal Opposition called on the Harper government Monday to stop credit-card companies from charging businesses higher fees for using premium cards.
The call came as a federal competition tribunal prepared to rule on whether Visa and MasterCard are engaging in anti-competitive behaviour.
Small-business groups hope the tribunal will recommend Ottawa forbid the major credit-card companies to force retailers to accept cards that carry higher payment-processing fees.
The high cost of processing credit-card payments is hurting businesses, said Glenn Thibeault, the NDP consumer protection critic.
"Ultimately, this results in reduced profit margins for merchants and higher retail costs for consumers," he said in a statement.
Canadian companies already pay the highest credit-card processing fees in the industrialized world, although Canadians enjoy some of the lowest debit fees among G20 nations.
A Manitoba official with the Canadian Restaurant and Food Services Association said its members would welcome any kind of relief from high credit-card fees.
Dwayne Marling, the association's vice-president for Manitoba and Saskatchewan, said credit-card companies make a bigger profit on most restaurant meals than the restaurant operator because the profit margins in the industry are so small.
He said a full-service restaurant in Canada makes an average pre-tax profit of only 3.7 per cent on a meal -- less than the percentage fee the major credit cards charge operators when the customer pays a bill with a premium or ultra-premium credit card.
He said the fee is less on a basic credit card -- about three per cent, so at the very least, businesses should have the option of not accepting higher-fee cards. The credit-card companies' current policy is that if a business accepts one type of credit card, it has to accept them all, he said.
Marling said high credit-card fees are an issue for the industry because the vast majority of meals purchased in full-service restaurants are paid with credit cards.
"To put a hard number on it is a challenge, but we do know it is very large, and it's increasing."
A decision from the Competition Tribunal could allow merchants to add surcharges for accepting credit cards, or allow merchants to refuse to accept certain higher-cost cards. The tribunal ruling was expected earlier this month but has not yet been made public.
Visa and MasterCard hold about 92 per cent of the credit-card market in Canada. It's estimated the fees they charge businesses to use their cards add up to about $5 billion annually.
-- Canadian Press, with files by Murray McNeill
Republished from the Winnipeg Free Press print edition January 22, 2013 B8
More Latest News
- Back to Top
- Return to Latest News
More Latest News
(1 of 42 articles for today)
First Nation celebrates groundbreaking on city's first urban reserve
1:52 PM 0
Poll
Most Popular Latest News
- Chiropractor guilty of sexually assaulting, beating ex-girlfriend
- 2 dead in crash near Portage la Prairie
- Two men now facing first-degree murder charges in Tim Bosma test drive death
- Man dies after being pulled from vehicle submerged in Winnipeg retention pond
- New downtown tower could be 42 storeys tall: developers
- Flood money paid for CEO's romantic trip
- Vendor fired at Houston's Minute Maid Park after taking tray of snow cones into bathroom
- Winnipeg woman camps out in front of legislature to protest child welfare
- Thompson RCMP find their suspect
- Crash claims two young women, RCMP say
- Man dies after being pulled from vehicle submerged in Winnipeg retention pond
- 87-year-old woman tells jurors, 'Somebody had to stand up to' Donald Trump
- Aboriginal leader Elijah Harper dies
- Horrific crash kills minivan driver near Brandon
- Woman killed in head-on crash in southwestern Manitoba
- Charleswood deaths being investigated as domestic incident
- Chiropractor guilty of sexually assaulting, beating ex-girlfriend
- Winnipeg woman camps out in front of legislature to protest child welfare
- Grocer Joe Cantor dies at 88
- 2 dead in crash near Portage la Prairie
- Seattle man dribbling soccer ball to Brazil killed by car on Oregon Coast
- Man dies after being pulled from vehicle submerged in Winnipeg retention pond
- 87-year-old woman tells jurors, 'Somebody had to stand up to' Donald Trump
- Driver crashes into tree near golf course
- Arrests made after raids on local head shops
- Aboriginal leader Elijah Harper dies
- News of city's $17-million winner leaks out on FB
- Passengers from diverted flight to leave Winnipeg Thursday night
- No threat from bag found at Winnipeg Square
- Susan Griffiths dies in Switzerland
- Chiropractor guilty of sexually assaulting, beating ex-girlfriend
- Grocer Joe Cantor dies at 88
- Youths in Stockholm burn down restaurant, torch more than 30 cars in 4th night of rioting
- Heritage Winnipeg hosting 10th annual Doors Open Winnipeg this weekend
- Landslide of love for Fleetwood Mac
- 2 dead in crash near Portage la Prairie
- Vendor fired at Houston's Minute Maid Park after taking tray of snow cones into bathroom
- Quicker pickup of bulk garbage urged
- Privacy commissioner wants power to impose 8-figure fines against offenders
- Winnipeg Harvest issues plea for donations
- New owner for lumber stores
- Aboriginal leader Elijah Harper dies
- Grocer Joe Cantor dies at 88
- Marsh Madness: Photographers Fred Greenslade and Joe Bryksa capture spring migration's grandeur at Delta Marsh
- Chiropractor guilty of sexually assaulting, beating ex-girlfriend
- Horrific crash kills minivan driver near Brandon
- Prominent Canadians back petition to rename Victoria Day to honour aboriginals
- Famous city grocer loved job, customers
- Animals are animals, new ads say
- Skin picking gets status as distinct disorder, should help sufferers access help
- New owner for lumber stores
- Aboriginal leader Elijah Harper dies
- Dogs can experience separation anxiety and depression just like humans
- Ontario steps in to help save ELA
- Saskatchewan professor wants to test the health benefits of nose-picking
- 'Revenge of the redheads': Ginger-haired Montrealers gather in celebration
- An uncommon phenomenon
- Grocer Joe Cantor dies at 88
- Passengers from diverted flight to leave Winnipeg Thursday night
- Hundreds pitch in to dig out houses damaged, destroyed by Ochre Beach ice floe
Ads by Google
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.
Have Your Say
New to commenting? Check out our Frequently Asked Questions.
The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.