The Merchants Payments Coalition highly indoors legislation proposal in Canada. It is going to reform the way retailers are charged hidden fees by banks when a customer swipes his/her credit card at checkout. Before the Canadian legislation was proposed, similar reforms had been successfully implemented in the European Union and Australia. The purpose is to bring transparency and completion to the market.
The Merchants Payments Coalition and NACS
The Merchants Payments Coalition is sure Congress should implement the swipe-fee reforms applied in a number of countries in the US. The mentioned reforms were implemented in Australia, the European Union, and are now introduced in Canada.
A wide range of businesses are involved in the Merchants Payments Coalition. These include online merchants, restaurants, supermarkets, convenience stores, drugstores, fuel stations, and other businesses. The National Association of Convenience Stores is a founding member of the Merchants Payments Coalition.
Associations that are members of the Merchants Payments Coalition’s represent almost 2.7 million stores and about 50 million employees. All these businesses are fighting unfair credit card fees, and urging to consider a more competitive and transparent credit card system that would work for the mentioned consumers and merchants more effectively.
Canadian Legislation Proposal
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The recent legislation introduced by a Canadian lawmaker is to establish credit card swipe fees at 0.3% of the purchase amount. Advocates of the legislation think it will save Canadian merchants and consumers billions of dollars. Also, it will stimulate the economy.
Merchants in America pay the highest swipe fees among all the developed countries. These comprise up to 4% in credit-card swipe fees, or $4 for each $100 spent, which is a 10.000% profit margin, because the bank spends just a few cents on the transaction. Thus, prices get higher for everything consumers purchase even without using a card. As a result, consumers with the minimum resources suffer most.