Sh** just got more expensive 😱
📢 As of Oct. 6, businesses are now allowed to pass on credit card interchange fees to customers instead of paying those fees themselves.
🏦 FYI... an interchange fee is a transaction fee that the merchant must pay whenever a customer uses a credit card to make a purchase from their store. These fees are paid to the card-issuing bank to cover handling costs, fraud, bad debt costs, and the risk involved in approving the payment.
💰 Although these fees also exist with debit, they are significantly lower compared to credit card fees.
💳 For small businesses, these fees can really into a business’s profits, which makes sense why they would want to pass this cost onto customers. But for big businesses (*cough* Telus *cough*), passing on this cost to me just looks like a money grab.
💵 So, what does this mean for you, the customer? To avoid these fees you can either use debit or cash instead, or you can choose to shop at businesses who won’t be passing on these fees. KOHO also announced that you will not be subject to these fees if you use them, but if a merchant charges you to reach out to them.
🤔 What are your thoughts on this big change. Will this change the way you use your credit cards?
#shorts
