Canadian restaurateurs are frustrated by high and confusing credit card fees, according to the results of a Canadian Restaurant and Foodservices Association (CRFA) survey released October 21.
The survey found that 93% of CRFA members are “very concerned” about increasing credit card transaction fees. Respondents said they found the fees difficult to understand and unpredictable, with 72% saying they don’t understand how they are calculated. They were also frustrated by the fact that fees were applied to the entire cost of the meal, including sales taxes and server tips.
“Credit card fees in Canada have spiralled out of control and are now among the highest in the world,” said CRFA president and CEO Garth Whyte.
“Clearly there’s a problem when banks and credit card companies are making as much money on a restaurant transaction as the restaurateur is.”
Credit card fees collected on sales tax in the restaurant industry alone add up to $40 million per year for banks and credit card companies, the CRFA said.
The survey also found that 79% of restaurant owners say the fees have a significant impact on their bottom lines.
The CRFA is once again calling on the federal government to regulate these fees.
“We received an incredibly strong response from our members on this issue, and the message is loud and clear: it’s time for Canada to rein in the Wild West of premium credit card fees,” Whyte said. “Many other countries have already taken regulatory action.”
