OTTAWA, July 22, 2013 /CNW/ - The Canadian Restaurant and Foodservices
Association (CRFA) will be keeping a close eye on tomorrow's decision
from the Competition Tribunal on unfair and anti-competitive rules
imposed on merchants by Visa and MasterCard.
CRFA is looking for the Tribunal to strike down three rules that are
extremely costly to merchants and ultimately lead to higher prices for
The rule that merchants must accept all cards from a credit card
network, including premium cards with much higher fees,
The rule that merchants cannot charge a fee on transactions made with
Visa and MasterCard; and
The rule that prevents merchants from encouraging or discouraging
customers from using certain credit cards.
Restaurants are particularly sensitive to rising credit card fees
because of the industry's thin profit margins and the fact that these
fees are applied not only to the cost of the meal, but also on the tax
and tip. The amount restaurateurs pay to process a credit card can be
higher than the profit margin on the meal they sell.
"If credit card companies keep introducing richer and richer premium
cards with higher and higher fees, restaurant owners need options to
control their costs," says Garth Whyte, CRFA President and CEO. "A
clear ruling from the Tribunal should help deliver savings to
consumers, particularly those who are subsidizing bonuses and trips for
higher-income premium card holders."
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.
SOURCE: Canadian Restaurant and Foodservices Association
For further information:
CONTACT: To arrange an interview with Garth Whyte, contact CRFA Communications Specialist Prasanthi Vasanthakumar, at 416-649-4254 or firstname.lastname@example.org.