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Published
Sep 16, 2016
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Finance Minister to review credit card fees in Canada

Published
Sep 16, 2016

Following an on-going battle in the credit card marketplace in Canada, the Minister of Finance has stated that the fees credit cards charge merchants in Canada will be reviewed.
 
The Retail Council of Canada (RCC), on behalf of merchants across Canada, has been a main advocate for a regulated solution to the credit card fee problem.
 

Finance Minister to review credit card fees in Canada. - Archivo

 
“Simply put, credit card interchange fees are far too high, with the credit card duopoly charging merchants in Canada – and ultimately Canadian consumers – five times what they charge in other markets for the same services,” the RCC says in a news statement.
 
“These excessive interchange rates mean that Canadian consumers pay at least $4.5 billion more for all credit purchases each year than they would if our rates were comparable to those in the EU” says Karl Littler, Vice President of Public Affairs at Retail Council of Canada. “At the current 1.50% average rate, over the four remaining years of the voluntary agreement, Canadians will pay at least $18 billion more than they should.” 

Still, the RCC added that they are “encouraged by the Minister of Finance’s commitment today to review the credit card marketplace in Canada.”
 
Meanwhile, Walmart announced earlier this year that it will phase out the acceptance of VISA cards at stores across Canada. Most recently, Walmart says it will no longer accept Visa cards at all its stores in Manitoba, starting October 24. 

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