July 23, 2013

OTTAWA – The Competition Tribunal may have rejected the complaint against credit card companies on unfair rules, but it has found that a stronger regulatory framework for credit card fees is required – something the Canadian Restaurant and Foodservices Association (CRFA) has been telling government for years.

The Competition Tribunal found that current laws around competition are not strong enough to control Visa and MasterCard’s unfair and anti-competitive rules imposed on merchants. The proper solution to a limitless rise in merchant fees is for government to step in and regulate.

“The federal Finance Minister has the authority to regulate credit card fees,” says Garth Whyte, CRFA President and CEO. “With the Tribunal’s ruling, it’s clear it’s high time government takes action. We can guarantee that CRFA will be pursuing this matter further with government.”

Impact of credit card fees

  • A typical full-service dining restaurant could pay $10,000 or more a year in credit card fees.
  • Credit card fees are charged on the meal, the tax and the tip. In many cases the credit card fees are higher than the restaurant’s profit.
  • The restaurant industry as a whole pays $40 million a year in credit card fees on sales taxes alone.

CRFA is one of Canada’s largest business associations, with more than 30,000 members representing restaurants, bars, caterers, institutions and other foodservice providers. Canada’s restaurant industry generates $65 billion annually in economic activity and employs more than 1.1 million people in communities across the country.


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