Payment News

Class Action Allows Credit Card Fee Surcharge in Canada

The settlement of a class action lawsuit against Visa and Mastercard in Canada has allowed retailers to pass on credit card fees to their customers. Processing fees are around 1.4-2.4%. Credit card usage is reported by Equifax Canada to be a historic high with balances reaching a record level of, on average, C$2,121. Equifax Canada say 60% of Canadians use their credit card for at least half their purchases.

In this context Angus Reid Institute has conducted a poll about how consumers might react if these fees are passed on. The results were that faced with paying an extra 1.5% credit card fee, 40% of people would buy elsewhere. If it was a small business, rather than a large organisation, that number dropped to 28%. 60% of respondents said they would pay with their debit card or with cash at large businesses, 50% at small businesses.