OTTAWA, Dec. 13, 2012 /CNW/ - Canadian restaurateurs are concerned and
frustrated by the rising fees they are being charged by credit card
companies on each customer transaction. The Canadian Restaurant and
Foodservices Association (CRFA) is calling for more government action
to put the brakes on runaway fees, which in many cases exceed the
profits on a typical restaurant transaction.
Visa Canada's recent notice that they plan to significantly increase
credit card fees and introduce a new super premium card next year has
highlighted the need for action.
"If the cash-back offers, travel awards and other bells and whistles
that come with credit cards seem too good to be true - it is because
they are," says CRFA President and CEO Garth Whyte. "Financial
institutions are off-loading these costs onto merchants through higher
credit card fees, and through the process raking in handsome profits.
Restaurant operators are getting squeezed and all consumers end up
Adding insult to injury, restaurant owners must pay credit card fees on
the tax they are required to collect for governments. When you include
the credit card fee on the tax and tip, the credit card companies' take
at the end of the day is higher than the restaurants'.
"Our members are asking for help from government to bring some fairness
to this unbalanced dynamic," says Whyte. "The Senate bill introduced
today brings some much-needed attention to this important issue."
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 $65-billion restaurant
industry employs more than 1.1 million people in communities across the
SOURCE: Canadian Restaurant and Foodservices Association
For further information:
contact CRFA Communications: Prasanthi Vasanthakumar, 416-649-4254 or firstname.lastname@example.org; Jill Holroyd, 416-649-4217 or email@example.com