US Merchants Are All for Canadian Swipe Fees Reforms

Apr 20, 2016

​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

Merchants running a high-risk business should necessarily turn to highly reputable payment processors . EMB is an ideal business partner for merchants trying to get the right high risk Canadian merchant account that will meet all their business needs.

Considered the number one high-risk merchant account provider in the US, EMB offers the best possible rates in the industry and the most advanced processing services to help you succeed.

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.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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