Retailers know how Visa and MasterCard fees cut into revenue. But now Visa and MasterCard are taking a cue from American Express. Amex has for years persuaded card holders that they get tangibly more (so-called rewards) for using American Express. You know who pays for the rewards. Until now merchants have been able to avoid such charges by simply refusing to accept American Express cards. In the end, they lose no business because, after all, everyone has a Visa or a MasterCard. And that’s where these two card companies see an opportunity to increase fees. They want to offer Amex-like cards which carry much highers costs paid for by the merchant. The kicker is that Visa and Mastercard are insisting on an all or nothing deal for the right to swipe any Visa or Mastercard. A retailer would not be able to accept any Visa card without accepting the premium cards. Thus they would be forced to endure charges similar to those levied by American Express. The battle rages between the Federal Competition Bureau, which opposes this, and the card companies. The Canadian Federation of Indepdeent Business has had the courage to organize a campaign asking retailers to ask for payment by cash or debit.
