Close X
Friday, January 10, 2025
ADVT 
National

Banks, credit card companies cutting rates charged to merchants, capping fees

Darpan News Desk The Canadian Press, 31 Oct, 2014 10:44 AM

    OTTAWA — Canada's major banks and credit card companies have reached a deal with the federal government to cut the fees charged to merchants for credit transactions, sources familiar with the negotiations say.

    The voluntary agreement could mean cost savings for up to 700,000 large, medium-sized and small businesses across the country.

    However, it remains to be seen whether the cuts will translate into savings for consumers.

    The deal will result in lower interchange fees charged to retailers and service providers for using credit cards to complete direct transactions, said sources speaking on condition of anonymity because they weren't authorized to discuss the matter publicly.

    The fees would then be capped for an unspecified period of time.

    The agreement comes after years of back-and-forth among retailers, the federal government, banks, credit card companies and the Competition Tribunal.

    Interchange fees currently range between $1.50 and $3 or more for every $100 worth of transactions, depending on the credit card.

    The federal Competition Bureau estimated in 2010 that credit card acceptance fees added up to $5 billion annually — a figure that has likely grown since — with about $4 billion of that coming in the form of interchange fees.

    While the big banks stand to lose millions of dollars from their bottom lines, the sources say the negotiated agreement gives retailers price stability.

    There are roughly 76 million credit cards issued to Canadians, who use them to pay for about half their overall purchases.

    The Retail Council of Canada says high-cost premium cards have hurt merchants the most.

    And says a majority of the savings from recent interchange fee reductions in the U.S. were passed on to customers.

    MORE National ARTICLES

    Private visitation for Nathan Cirillo at funeral home in Hamilton

    Private visitation for Nathan Cirillo at funeral home in Hamilton
    HAMILTON - Relatives and dignitaries paid their respects on Sunday to the soldier whose death at the foot of the National War Memorial in Ottawa shocked Canadians and sparked a massive outpouring of grief.

    Private visitation for Nathan Cirillo at funeral home in Hamilton

    Today on the Hill: Tours of Parliament Buildings resume after deadly shooting

    Today on the Hill: Tours of Parliament Buildings resume after deadly shooting
    OTTAWA - Tours of Parliament Hill will resume today after the fatal shooting of a soldier at the National War Memorial and the killing of his assailant in the halls of Centre Block.

    Today on the Hill: Tours of Parliament Buildings resume after deadly shooting

    Perjury trial begins for RCMP officers involved in airport Taser death

    Perjury trial begins for RCMP officers involved in airport Taser death
    VANCOUVER - A former RCMP officer who was involved in Robert Dziekanski's fatal confrontation with police at Vancouver's airport seven years ago is expected to be in court today to stand trial for perjury.

    Perjury trial begins for RCMP officers involved in airport Taser death

    Saskatchewan smart meter fires: Report says customer safety wasn't priority

    Saskatchewan smart meter fires: Report says customer safety wasn't priority
    REGINA - An investigation into a smart-meter program linked to at least eight fires in Saskatchewan says customer safety wasn't enough of a priority for SaskPower.

    Saskatchewan smart meter fires: Report says customer safety wasn't priority

    Canadian task force advises against screening for prostate cancer using PSA test

    Canadian task force advises against screening for prostate cancer using PSA test
    TORONTO - A national task force that issues guidelines for doctors says PSA testing should not be used to screen men for possible prostate cancer because it can lead to more harms than benefit.

    Canadian task force advises against screening for prostate cancer using PSA test

    Quebec premier says direct Montreal-China flights could be coming

    Quebec premier says direct Montreal-China flights could be coming
    SHANGHAI - Quebec Premier Philippe Couillard is hinting there could be direct flights between Montreal and Beijing within the next year.

    Quebec premier says direct Montreal-China flights could be coming