Small Business Matters Coalition Responds to Credit Card Fees Announcement

The attached news release was sent out today by the Small Business Matters Coalition, which represents a number of business and trade associations in a wide variety of sectors. The announcement today by the Minister of Finance has some elements that we welcome and support.

There are other issues that still remain a concern. It is worth remembering that the new agreement to get go into effect in 2020 are solely the result of efforts on the part of the Coalition, which CFIG heads. The current agreement between the credit card companies and the Harper government, excluded American Express. It also set a 1.5% overall rate. We said this was not low enough.

As well, many retailers were not seeing that 1.5% rate because the premium card rates were still too high. Depending on the sector, customer base, store location etc… premium card usage varies. So some businesses could have rates as high as 1.9%’. We also wanted more transparency. The target reductions should be subject to independent audits and made public. While we are supportive of a further reduction in the overall rate of 1.5% to 1.4%’, that is not significant. We do welcome the announcement that American Express will be included in the new agreement. We also applaud the decision to have the overall rate reduction subject to an independent third party audit. The Coalition also supports the additional reduction of premium card rates so that the reduction to an overall rate of 1.4%—or 1.23% for independent grocery—is actually achieved. However, in our view the gap between what our members pay and what, for example a Wal-Mart pays, is still too wide. So today’s measures are steps in the right direction. But clearly more needs to be done. We will keep on this until the journey is complete. Together.

Thank you for your continued support.

Gary Sands

Chair, Small Business Matters Coalition