Bakers Journal

News
Restaurants seek truth, transparency on card fees


April 29, 2009
By Canadian Restaurant and Foodservices Association

credit_cardsNEWS HIGHLIGHT

Restaurants seek truth, transparency on card fees
Despite testimony in the Senate over the past few days, Canadian restaurateurs are still baffled by the skyrocketing credit card fees being charged to restaurants each time a customer pays with Visa or MasterCard.

April 29, 2009, TORONTO –
Despite testimony in the Senate over the past few days, Canadian
restaurateurs are still baffled by the skyrocketing credit card fees
being charged to restaurants each time a customer pays with Visa or
MasterCard.



The Senate Committee on Banking, Trade and Commerce heard from credit and debit card company representatives last week during its investigation into fees charged to merchants and consumers.  Despite repeated calls from Senators for an explanation of fees, Visa and MasterCard blamed the payment processors that charge fees to merchants and avoided questions about all other credit card fees.
 
“It’s a simple matter of truth and transparency,” says Justin Taylor, vice-president of labour and taxation for the Canadian Restaurant and Foodservices Association (CRFA). “If the top credit card executives can’t explain the fees, how can we expect restaurateurs to understand them? The fact that these companies refuse to be held accountable for their fees is shameful.” 

During testimony on April 22, Visa and MasterCard also defended their plans to introduce new, high-cost debit products. “Credit card companies argue that their debit products will enhance consumer choice – but we don’t buy it,” says Taylor. “We’ve seen it happen before. Banks will use reward points to lure customers into using the higher-cost debit product. In the end, merchants and customers will be paying more for a new service that no one except the credit card companies needs, or wants.”
 
The head of Interac also appeared before the Senate, outlining a plan to change Interac into a for-profit commercial entity that will be “more innovative.”
 
 “If more bells and whistles mean consumers and merchants will be charged higher fees, restaurateurs are not on board,” Taylor says. 
 
In its written submission to the committee, CRFA explained how the unfair practices of credit card companies and banks are leading to significant increases in costs for restaurant operators – and to higher menu prices for consumers.

Advertisment

Print this page

Related



Leave a Reply

Your email address will not be published. Required fields are marked *

*