U.S. Merchants Payments Coalition Applauds Proposed Canadian Bill
This proposed legislation would set swipe fees on credit cards at 0.3% of the purchase amount. Those in support of the law say it will save Canadian consumers and merchants billions of dollars.
In the United States, American merchants currently pay up to 4% in swipe fees, or $4 for every $100 spent. According to the Merchants Payments Coalition, this represents a 10,000% profit margin, since the transactions only cost banks a few cents. Swipe fees represent the second-largest operating expense for many U.S. retailers.
The Canadian bill is similar to reforms that have been made in the European Union and Australia.
“Successful reform measures in the European Union and Australia have exposed the true cost of these hidden fees to both the consumer and the merchant,” said Jennifer Hatcher, senior vice president of government and public affairs at the Food Marketing Institute, a member of the Merchants Payments Coalition.
“We encourage Canadian legislators to expose the cost of these hidden fees and rein them in.”