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Visa/Mastercard surcharges being passed to customers


Seifer86

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Not sure if this was brought up yet, so apologies if there is a thread started already. Something to keep an eye on when paying with your credit card going forward. I noticed on my most recent Telus bill that they'll be adding a 1.5% surcharge fee when paying with a card after October 17.

 

https://creditcardsettlements.ca/

Canadian Credit Card Class Actions

 

Class actions were started in Canada claiming certain banks and Visa and Mastercard (the “Defendants”) conspired to set higher interchange fees and to impose rules restricting merchants’ ability to surcharge or refuse higher cost Visa and Mastercard credit cards.

 

“Interchange Fees” are fees paid by merchants and collected by banks for transactions involving Visa and/or Mastercard credit cards in Canada.

Settlements totaling $188 CAD million were reached with Capital One, Citigroup, Bank of America, Desjardins, National Bank, Visa, Mastercard, CIBC, Royal Bank, Bank of Montreal, TD Bank, and Bank of Nova Scotia. Additionally, Visa and Mastercard have agreed to modify their no-surcharge rules to allow merchants to surcharge up to a cap, and to ensure this ability to surcharge remains in effect for a minimum of five years.

 

The settlements have received court approval, and there is a total of $131 CAD million in compensation available for distribution to class members after court-approved deductions (the “Net Settlement Amount”). The Defendants do not admit any wrongdoing or liability. The settlements resolve the class actions.

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I will pay cash now.  For almost everything.  I will set up potential cash based layaway programs with local businesses I utilize.  With fees etc from this as well as duties from banks and electronic fees I am paying almost $7 per transaction for every $100 spent.  BEFORE taxes.  Just for using a gd visa/MC/Debit

 

Literally no excuses for this in a digital age where your information is handled in seconds without human hands ever being needed.  No overhead needed no salaries etc.

 

This is pure greed and will amount to just more of the cost passed to the consumer no matter what

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19 minutes ago, Coconuts said:

I'm not thrilled, any big purchase I can pay via debit will be paid via debit going forward. 

No added charges so far when paying bills ( Visa, Telus, BC Hydro and Shaw Cable) at my local Credit union. Quit dealing with the big banks many years ago and do not regret that decision in the least. I pay no added fees for my Visa card as long as I pay the full amount due each month; same for all the others. Telus tried to force me to do the online crap and I refused. Lots of pressure tactics on their part but I guess telling them I would be taking my business elsewhere if they persisted, did the trick. They all send paper statements that I take to the CU and pay. One might say I am a stubborn SOB. LOL; got that a lot at work but was employed there for 43 yrs till retirement so must have been doing something right.

 

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1 hour ago, Warhippy said:

I will pay cash now.  For almost everything.  I will set up potential cash based layaway programs with local businesses I utilize.  With fees etc from this as well as duties from banks and electronic fees I am paying almost $7 per transaction for every $100 spent.  BEFORE taxes.  Just for using a gd visa/MC/Debit

 

Literally no excuses for this in a digital age where your information is handled in seconds without human hands ever being needed.  No overhead needed no salaries etc.

 

This is pure greed and will amount to just more of the cost passed to the consumer no matter what

Hey Hip!  Long time no chat, I still avidly read but rarely log in these days. 
 

just to put some perspective on this.  As a small business owner, we have been forced to pay for all these “extra points” folks receive from their CC companies.  If by greed you mean the CC companies offering all these “incentives”. To their customer as the greed I totally agree.  Why should a small business have to foot the bill for the card companies offering perks?!?  That’s should fall on the financial institution looking to gain the extra customers. 
 

It might not seem like much but if a small business does 1 mil in business that is CC transactions.. that’s a lot of extra money to go towards the bottom line. Just my two cents :) 

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14 minutes ago, TheOgRook said:

Hey Hip!  Long time no chat, I still avidly read but rarely log in these days. 
 

just to put some perspective on this.  As a small business owner, we have been forced to pay for all these “extra points” folks receive from their CC companies.  If by greed you mean the CC companies offering all these “incentives”. To their customer as the greed I totally agree.  Why should a small business have to foot the bill for the card companies offering perks?!?  That’s should fall on the financial institution looking to gain the extra customers. 
 

It might not seem like much but if a small business does 1 mil in business that is CC transactions.. that’s a lot of extra money to go towards the bottom line. Just my two cents :) 

It's a cost of doing business, just as cash also has its expenses with bank runs, theft, and wasted hours counting the stuff.  Losing business to businesses who treat their customers right and don't impose these kind of fees also effects the bottom line.

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I have no problem when asked to use my debit card at small mom and pop shops that don't have the supply chain like the major companies have. Most businesses already have the CC charge accounted for in their price analysis so it sounds like price gouging to me when inflation has already been up ~8%.

 

I think it may be time to date stamp an envelope paying for my expenses in dimes

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I don't understand why the Canadian Government doesn't make it's own National Bank. They can put limits on fees and make a more customer friendly Bank.

Given most Banks and Credit Unions (Don't think Credit Unions are saints they like profits as well), make billions per QUARTER. A government owned bank that makes $500 million per quarter and pumps most of that into general revenue will be a benefit. Not to mention a Government owned bank can set up small branches in small towns where the big banks don't want to bother.

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1 hour ago, King Heffy said:

It's a cost of doing business, just as cash also has its expenses with bank runs, theft, and wasted hours counting the stuff.  Losing business to businesses who treat their customers right and don't impose these kind of fees also effects the bottom line.

In most businesses costs are passed onto the customer, I can tell you that most companies won’t even tell you about the increase or even offer you a discount for paying cash. Not all small business are making enough profit to absorb all costs associated with doing business. 

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