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
"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 firstname.lastname@example.org.
SOURCE: CANADIAN FEDERATION OF INDEPENDENT BUSINESS
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-0- Jan/04/2013 12:00 GMT
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