[Money172375]

If merchants start charging transaction fees for credit card purchases, will you stop using your “premium” credit cards for travel points or cash back?

https://www.cbc.ca/radio/costofliving/credit-card-user-you-could-soon-pay-more-for-every-purchase-1.6600469

Canadian businesses can charge credit card fees starting Oct. 6

Starting Thursday, businesses in Canada will soon be able to pass credit card fees on to their customers, thanks to a multimillion-dollar class-action settlement involving Visa and Mastercard.

www.ctvnews.ca

 

[Beaver101]

^ YES. Either move/use a competitor, pay via debit or pay by cash depending on type and frequency of payment plus the "merchant" itself. I ain't paying a surcharge to a LARGE corp, period.

Add: I hope the merchants be "upfront" about the "surcharge" that they'll be charging on the credit cards. Example: Telus will be surcharging credit card PAC. Thank Lord I don't use any of Telus services.

Add2: On further thought, for Telus (a large corporation) to surcharge their customers is just spilling out the message of "plain greed" of this "merchant".

 

[m3s]

Europe already did that

When you pull out a flashy Visa for the local mechanic they look in horror and explain that will cost an extra $50 to the american credit card company and encourage you to use debit or cash

Apple cash can easily replace premium credit cards. Ideally we move to a decentralized protocol because a centralized one will just add the same fees back

 

[MrMatt]

I don't think this is going to have the pro-consumer impact people are hoping for.

If they go and add a fee at the last second without disclosing it previously, I'll be angry. As long as they disclose it, sure.

 

[m3s]

I don't think this is going to have the pro-consumer impact people are hoping for.

If they go and add a fee at the last second without disclosing it previously, I'll be angry. As long as they disclose it, sure.

You'd rather it's just hidden into the price for everybody? Out of sight out of mind?

Basically poor people are subsidizing those travel perks that a mostly exploited by people who have time to game the system

Airlines make more money from the convoluted rewards system they control

 

[ian]

Our experience in countries where the fee can be charged is that vendors are very upfront about it. Never hidden. As soon as we present our credit card or ask it if is accepted we have always been advised of an add on fee of 3 percent.

I expect the same will occur in Canada with those vendors who charge. It is hardly hidden...all you have to do is compare your invoice price to the card amount on the credit card terminal.. Something that we always do as a matter of course.

 

[cainvest]

You'd rather it's just hidden into the price for everybody? Out of sight out of mind?

So keep on operating like it's always been, a hidden cost.

It will be interesting to see if cash discounts gain acceptance. Depends on the numbers it could even create a divide between retailers and credit card companies.

 

[Beaver101]

So keep on operating like it's always been, a hidden cost.

It will be interesting to see if cash discounts gain acceptance. Depends on the numbers it could even create a divide between retailers and credit card companies.

... cash discounts? From whom? I know no merchants would offer a discount for using cash other than maybe those in the renovations business who don't give a bill of laden for services rendered.

 

[Mortgage u/w]

Those fees should be already imbedded in items - I doubt a merchant doesn't consider ALL costs prior to pricing their items. Like everything else, the merchant eventually forgets they already priced it in and find excuses to extract even more from the consumer. Its a vicious cycle.

As far as I know, most merchants already charge extra for such fees - Anyone who has a Home or Auto Insurance with TD knows that they charge an extra 3% if you choose to pay monthly. Its charged regardless your choice of payment, but its clearly imposed to offset their cc charges.

If I were a merchant, I would just increase all my items 3%. This way, consumers will not be conscious of the extra fees and will be free to pay any method they wish. I can't be the only one thinking this.

I hope this blows up and forces banks and merchants to find new ways to accept payment.

 

[m3s]

Those fees should be already imbedded in items - I doubt a merchant doesn't consider ALL costs prior to pricing their items. Like everything else, the merchant eventually forgets they already priced it in and find excuses to extract even more from the consumer. Its a vicious cycle.

As far as I know, most merchants already charge extra for such fees - Anyone who has a Home or Auto Insurance with TD knows that they charge an extra 3% if you choose to pay monthly. Its charged regardless your choice of payment, but its clearly imposed to offset their cc charges.

If I were a merchant, I would just increase all my items 3%. This way, consumers will not be conscious of the extra fees and will be free to pay any method they wish. I can't be the only one thinking this.

I hope this blows up and forces banks and merchants to find new ways to accept payment.

They already do increase the prices by 3%

3% is not insignificant for many retailers especially small businesses. Some watch as Visa gets half their revenue for doing none of the work

People are just ignorant and like their pts which will be devalued before they find something to spend them on

 

[Beaver101]

Those fees should be already imbedded in items - I doubt a merchant doesn't consider ALL costs prior to pricing their items. Like everything else, the merchant eventually forgets they already priced it in and find excuses to extract even more from the consumer. Its a vicious cycle.

As far as I know, most merchants already charge extra for such fees - Anyone who has a Home or Auto Insurance with TD knows that they charge an extra 3% if you choose to pay monthly. Its charged regardless your choice of payment, but its clearly imposed to offset their cc charges.

If I were a merchant, I would just increase all my items 3%. This way, consumers will not be conscious of the extra fees and will be free to pay any method they wish. I can't be the only one thinking this.

I hope this blows up and forces banks and merchants to find new ways to accept payment.

... this surcharge "impacts" small businesses moreso than the large corps. For large corps to tack on another surcharge mounts to EXCEPTIONAL GREED which includes both the banks and their credit cards' divisions.

 

[cainvest]

... cash discounts? From whom? I know no merchants would offer a discount for using cash other than maybe those in the renovations business who don't give a bill of laden for services rendered.

Not to common but we have a few local restaurants that offer cash discounts, if fact there is one that only accepts cash. A small computer store in the city also gives a cash discount. And yes, you do get receipts.

 

[cainvest]

They already do increase the prices by 3%

Exactly, the cost is aleady built in.

 

[m3s]

Exactly, the cost is aleady built in.

Retail is being squeezed

So they have the choice to increase the price or point out to clueless Canadians that those crap pts aren't free

How high do you think margins are? 3% is not insignificant

 

[Mortgage u/w]

... this surcharge "impacts" small businesses moreso than the large corps. For large corps to tack on another surcharge mounts to EXCEPTIONAL GREED which includes both the banks and their credit cards' divisions.

Its greed from all sides, for sure. We will probably start seeing merchants drop credit card payments altogether - most already do, accepting debit only. Not so long ago, Tim Hortons only accepted debit. Cinema Guzzo only accepted cash. A lot of small business I know accept cash only as well - the problem with cash is it opens the door to tax evasion.

 

[Beaver101]

Its greed from all sides, for sure.

... no, it's PRIMARILY greed from the LARGE corps, particularly the banks and their credit (cards) division because 1. they can charge astronomical interest rates for providing that credit and 2. refusing to drop aka reduce the merchant fees for small businesses. Large corps are charged a MUCH LOWER merchant fee (at least 50% less) than small businesses.

We will probably start seeing merchants drop credit card payments altogether - most already do, accepting debit only.

... I hope they do and then the credit cards department can be shuttered down.

Not so long ago, Tim Hortons only accepted debit. Cinema Guzzo only accepted cash. A lot of small business I know accept cash only as well - the problem with cash is it opens the door to tax evasion.

... I'm sure the CRA has an eye on these "only cash" businesses, if that's a concern.

And then there's a time when preference is that customers use only credit cards - and tap ones only, no PIN either. - eg. as recent as during the pandemic.

 

[Thal81]

The fees will have to exceed my cashback rewards for me to stop using my credit card.

 

[Beaver101]

Not to common but we have a few local restaurants that offer cash discounts, if fact there is one that only accepts cash.

... am aware of a few like that in Toronto but no discount for using cash. It's cash - take it or leave it. And no their prices ain't attractive either nor the food(s).

A small computer store in the city also gives a cash discount. And yes, you do get receipts.

... don't know any computer store that accepts "cash only", never mind about a discount. I would want a receipt for anything that I purchase o/w there's no after-purchase guarantee of any sorts.

 

[ian]

I would be very surprised if merchants dropped credit card acceptance. Much, much easier to charge a fee and let the customer make the choice.

Some of our favourite travel locations are Greece and Italy in the fall and Thailand in the winter. We often pay cash. Indeed, on our most recent stay on Zakynthos we selected a waterfront furnished condo stay. The cost was 500e on a booking site. We were able to make contact with the owner on line (we were already staying on the island). The bottom line price for going direct AND paying cash was 250e.

In other B&B's and small hotels in Italy and Greece it was not unusual to secure a ten percent discount for cash and/or a room upgrade. Our habit is to bring out our credit card and then ask what is the discount for cash. Makes a difference when we are traveling for 7-8 weeks at a time.

On our pre covid Thai trip we took 2K in cash. We get a much better exchange rate in Bangkok than we do in Canada. Our ATM withdrawals are usually in the $500-600CAD range because so many of the small places we stay or eat only take cash.

Cash will foster tax evasion. It is already pervasive in the home improvement business.

 

[Beaver101]

The fees will have to exceed my cashback rewards for me to stop using my credit card.

... surcharge is 1.5%, cashback is 1.5%. And so?

And then there're those points/travel rewards ... 1.5% surcharge, 1 airmiles or say even 100 airmiles - which ain't worth beans. Even their T&C says so - no cash value. And so why am I paying a 1.5% surcharge that I have to pay for something that they (credit card company) has deemed of having no cash value? Seems like highway robbery if not outright fraud themselves.