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In Canada, most CC agreements with merchants do not allow the merchant to pass the fee on to the consumer. You can't charge $102.04 for a $100 product if the c
by peeters 10y ago
In Canada, most CC agreements with merchants do not allow the merchant to pass the fee on to the consumer. You can't charge $102.04 for a $100 product if the customer is paying with Visa. Thus the total cost to consumers is completely hidden.
- eru 10y agoAre they allowed to give a discount for paying in cash?
- peeters 10y agoThey are (at least according to rule 5 here: http://www.fcac-acfc.gc.ca/Eng/forIndustry/publications/LawsReg/Pages/CodeofCo-Codedeco.aspx http://www.fcac-acfc.gc.ca/Eng/forIndustry/publications/Laws...). Not sure why I haven't seen it in practice; maybe the regulation is new like the American equivalent. I'm not a fan of making it a discount vs allowing merchants to charge a surcharge though.
- dorfsmay 10y agoMountain Equipment Coop use to have give a discount if you didn't pay with a credit card. They eliminated it saying it wasn't fair to people buying online.
- Sgt_Apone 10y agoI've seen some gas stations do this. Usually 3 cents off a litre if you pay cash or debit.
- spoonie 10y agoI saw it once at a small computer store in Ottawa in 2008.
- mseebach 10y ago> Thus the total cost to consumers is completely hidden. Just like the cost of paying by any other mean is. Cash or cheque payments are not free.
- peeters 10y agoThey're not free, but they're a flat rate.
- mseebach 10y agoThe marginal rate within a certain tolerance is reasonably flat, of course, but in a slightly broader perspective, it's not. It's obviously not a clear-cut linear rate (like with CCs), but handling more cash is certainly more expensive. Insurance, mistakes and "wastage" all increase as the sums of money handled goes up. Also, more money takes more (expensive, background-checked) people to count, and it means bigger safes and more frequent pickups.