MasterCard Canada announces fee hike for small business in advance of Competition Tribunal decision

MasterCard Canada announces fee hike for small business in advance of 
Competition Tribunal decision 
TORONTO, Jan. 4, 2013 /CNW/ - Following recent decisions by Visa Canada, 
MasterCard Canada has communicated plans to increase its transaction fees for 
small merchants in the summer of 2013. MasterCard will increase its 
"assessment fee" from 6.4 to 7.7 basis points - a 20 per cent increase on July 
1, 2013. 
"CFIB is very disappointed that MasterCard is choosing to increase its fees at 
a time when small firms are struggling with an uncertain economy," said 
Canadian Federation of Independent Business (CFIB) president and CEO Dan 
Kelly. "While MasterCard is raising fees by a smaller amount than Visa, it 
is particularly surprising that both major card brands are increasing their 
fees just before Canada's Competition Tribunal is expected to rule on its case 
against the two card giants." 
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. While MasterCard has promised two small fee 
reductions in the fall, MasterCard already offers an "uber-premium" card - a 
move Visa has recently promised to follow. 
"Unfortunately, the only competition between Visa and MasterCard is to see who 
can raise prices the most for merchants and consumers and deliver the highest 
fees for Canada's banks," Kelly noted. 
CFIB reminds consumers that paying with Interac, debit or cash is one small 
way they can help small businesses. In addition, merchants can find special 
signage to promote paying with Interac or cash at www.cfib.ca/debitcredit. 
"CFIB will continue its work as the watchdog of the credit card industry in 
Canada and press for further changes to the Code of Conduct to help merchants 
push back against unfair fees and practices," said Kelly. "Small business 
owners are calling on MasterCard to reconsider its plans to hit them with 
higher fees when many entrepreneurs simply can't afford to pay more." 
As Canada's largest association of small- and medium-sized businesses, CFIB is 
Powered by Entrepreneurs™. Established in 1971, CFIB takes direction from 
more than 109,000 members in every sector nationwide, giving independent 
business a strong and influential voice at all levels of government and 
helping to grow the economy. 
To arrange an interview with Dan Kelly, please call Gisele Lumsden at  416 
222-8022 or by email atpublic.affairs@cfib.ca. 
SOURCE: CANADIAN FEDERATION OF INDEPENDENT BUSINESS 
To view this news release in HTML formatting, please use the following URL: 
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CO: CANADIAN FEDERATION OF INDEPENDENT BUSINESS
ST: Ontario
NI: FIN LAW VERDICTS LAWVIEWS  
-0- Jan/04/2013 12:00 GMT
 
 
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