![]() On the other side, businesses that often sold to other businesses were more likely to want to pass on the transaction costs. Only 12 per cent of retail, 17 per cent of personal services and 19 per cent of hospitality businesses said they were sure to add the surcharge. ![]() Those in consumer-facing businesses were the least likely to say they would pass on the costs. Another 26 per cent said they would do so if their competitors did 40 per cent said they were not sure yet and 15 per cent said they would not. 8, 19 per cent of respondents were planning to add the surcharges as soon as they could. Who is charging credit card fees?Īn estimated one in five small businesses is planning to pass on credit card transaction fees to their customers, according to a survey by the Canadian Federation of Independent Business.Īccording to the CFIB’s online survey of 3,914 members, conducted from Sept. For instance, the American Express Cobalt costs $155.88 a year, and the Scotiabank Gold American Express adds $120 to your annual bill.įor these and other cards with higher reward rates, you have a judgment call to make when paying a retailer with credit card processing fees. However, some of the credit cards with higher reward rates also come with higher annual fees, which you should also factor into the equation. Two examples he cited are American Express Cobalt, which offers points at a rate of 5 per cent of spending on food and restaurant meals, and Scotiabank Gold American Express, which offers a 6-per-cent reward rate on spending at Sobeys, IGA and Safeway grocery stores, and 5 per cent on other food and restaurant spending. Some cards offer higher reward rates that will exceed surcharges, Mr. If you pay a 1.4-per-cent fee on credit card transactions, you cancel out the value of that average reward. Patrick Sojka, founder of RewardsCanada.ca, said the average reward program has a value of one cent or point per dollar spent, or 1 per cent. How does the surcharge affect credit card rewards?Ĭanadians will have to do some mental math to compare how much they lose to surcharges and how much they gain in credit card points on a purchase. Some credit card plans also include extended warranty on purchases, purchase protection, or insurance against damage, loss or theft.Īnother consideration for many Canadians is credit card reward programs, the value of which will be directly affected by the surcharges. ![]() There are considerations that might persuade customers to use a credit card despite the charge, such as being able to wait until the end of a bill cycle to pay for a purchase. Online payments predominantly go through credit card services, but some retailers that accept Interac Debit payments can offer an alternative. At stores, customers can opt for cash or debit payments to avoid surcharges, or they can shop at stores that don’t charge a fee. The surcharges will apply to payments made by credit cards, but debit and cash payments remain the same. How can you avoid paying credit card transaction fees? Upon purchase, you should be informed of how much the surcharge is and you can back out before completing the transaction without penalty. ![]() How do you know if a retailer is charging you a transaction fee?īusinesses have to disclose information on credit card surcharges at the entrance of their physical stores, on every receipt, and at the point of sale online, in person and over the phone. ![]()
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