Small Business News
Plans by a small business group to encourage consumers to use cash instead of credit cards hit a snag when it became unclear whether doing so would violate credit card company rules.
The Canadian Federation of Independent Business had planned to take its war with the credit card industry to a new level after Christmas by arming its 107,000 members with signs and cards that encourage consumers to reach for cash or debit.
Under the headline “Would you consider paying with cash or debit?” the promotional materials would say: “Most Canadians are unaware that small businesses pay huge fees to the banks and credit card companies to process credit card transactions. Paying with cash or by Interac helps independent firms keep prices down for us all.”
Small business wants consumers to use cash
However, the plan hit a snag after Canada’s competition watchdog said Wednesday that one of the rules used by Visa and MasterCard to restrict competition prohibits merchants from encouraging consumers to reach for cash or debit.
The federal competition bureau said the card companies use “restrictive” and “anti-competitive rules” that it said contributed to high fees for merchants who accept credit cards.
What did you use this holiday season?
