CHRISTINE MOORE CALLS FOR HARD CAP ON CREDIT CARD TRANSACTION FEES FOR SMALL BUSINESSES
Small Business Week
October 19th, 2018 - 1:46pm
ROUYN-NORANDA – In the midst of Small Business Week, the NDP is pushing for some much needed relief for small businesses by placing a hard cap on the transaction fees merchants are charged when customers pay with their credit cards. The fees in Canada, which are among the highest in the world, cost merchants $4 billion every year, money that goes to the banks that issue the credit cards.
Unlike debit card merchant fees, which are set at a flat rate of a few cents per transaction no matter the size, merchant fees for credit cards are a percentage of each purchase and have fluctuated over the years between 1.69% and 2.39% depending on the card.
MP Christine Moore (Abitibi-Temiscamingue) says the NDP is calling for a hard cap of 1% that will give our small businesses a fair shot and an opportunity to grow. "For example, a business like Fourrures Grenier (Furs) in Barraute, merchant fees neighbours 25 000$ a year. It's huge and unjustified considering the bank's humungous profits", explains Mrs Moore.
“A permanent cap of 1% is a concrete measure that would save Canadian small and medium sized businesses over a billion dollars every year,” said NDP Small Business Critic, Gord Johns. “Canadian businesses are done waiting for this government to act. It’s time to boost consumer buying power, inject much-need resources into our local economies, and help create jobs in every community from coast to coast to coast!”