Hike service

How the Secondary Market Will Handle Credit Card Fees

Image credit: Depositphotos.com

For now, most aftermarket companies won’t pass credit card charges on to their customers. But at least a third of the industry is undecided.

As a result of a class action lawsuit, most Canadian merchants are now able to pass on credit card processing fees to their customers. Those in Quebec, however, will not be due to provincial consumer protection laws.

A survey by the Canadian Federation of Independent Business (CFIB) found that about one in five (19%) would seek to offset fees by passing the cost on to consumers. CFIB also found that merchants who operate in a business-to-business environment would be more likely to pass on fees than those who deal with consumers.

car care world asked his readers how they will approach this. The results were more or less in line with those of the business community as a whole.

At least for now. Most are still undecided as to how they will proceed.

When asked if they would pass the fees on to consumers, most (43%) said no. But not far behind were those who were still considering it – 39% said they were undecided. One in five respondents (19%) said they would, which is consistent with CFIB’s findings.

When seeking to pass on costs to commercial customers, secondary market professionals were more likely to pass on these costs (25%) in this case. However, as with consumers, most (43%) said they would not and almost a third (32%) were undecided.

“Merchants have been paying credit card commission fees to Moneris or the … for years and have been unable to openly ask for a refund,” one respondent wrote in the options comments section. They replied that they will pass on the fee regardless of the type of customer. “Credit card users have benefited from the accumulation [cash] Air Miles points or benefits. It’s time to stop the bleeding.

Several respondents said they would not pass on the fee, explaining that the additional cost is already built into their pricing structure for all customers.

“We have chosen not to add any fees at this stage. In my opinion, all companies have already taken this into account,” said one respondent.

A pair of respondents who said no to both explained that it would cost them customers. Similarly, one respondent mentioned that additional fees would simply result in another price hike for consumers.

“It’s better to lose 2% than 100%,” observes another.

Although one respondent said they would not pass the charges on to either type of customer, they noted that “credit card holders should bear all the charges, not the companies that accept them. “.

One of them who was undecided said he would wait to see what the others would do first. “I will if the competition does. But I won’t be the first.

Another undecided respondent explained that it could depend on the amount of the customer’s bill. “I place a threshold above which I charge an additional 2%. But below I don’t know yet how I would implement it. We will see.”

On the yes side, whoever said he would charge consumers the extra fees explained that he was paying around $30,000 a year in credit card fees. “Averaging almost 2% per trade, this quickly adds up and reduces our bottom line.”