Canadian Business Credit Cards

canadian business credit cards

Why do people outside of the US say “double-six”?

I deal with alot of foreign customers in my business, and I notice when they read their credit card numbers they say double or triple numbers as “double-six” or “triple-five” whereas in the US we tend to say “six-six” or “five-five-five”. I notice Canadians, though use the American method, though.

If someone can’t figure out that double 5 means that there are 2 fives in a row, then perhaps they are a little slow.
It’s much quicker to say double 5 or whatever, same goes for expiry date. I notice that compared to most of us Aussies, you americans speak rather slowly. By the time most of you have finished your rather drawn out “oh my god”, we’ve spoken two sentences!! I guess it just has to do with how most of us shorten every possible word we can, just part of the english language in our part of the world.

Everyone Pays for Your Credit Card Usage

For most of us, the costs of credit cards are limited to annual fees, interest charges and over the limit costs. Most of us don’t stop to think that are additional, hidden costs associated with credit card use. There are merits to the idea that credit card use during the past couple of decades has contributed to higher prices for all consumers.

So Who Pays?

Many people contend that credit cards save them money. Rewards programs and discounts can help them pay less on the surface. The cost of the convenience of credit cards isn’t always as overt as annual fees and interest. There are more subtle costs associated with credit card use. Some of these hidden fees include the transaction fees businesses are required to pay to process our credit cards.

It’s true that businesses have to pay when they process debit cards, but credit card issuers charge more for credit card processing. Even if you do use a debit card, a signature transaction comes with higher fees charged to merchants. (Clearly, this is why your bank will reward you for using a signature rather than a PIN.)

Businesses aren’t the only ones paying. As expected, businesses that have to maintain profit margins pass these charges on to you. Even if you use cash, you often pay more. And, if businesses try to remain competitive with lower prices in spite of the fees, it means that the business probably can’t hire extra people. These fees have indirect costs that can affect the economy of an entire community.

Can You Help?

As a way to educate consumers about credit card transaction fees, the CFIB plans to educate shoppers about the high charges Canadian businesses face. The burden is especially high on independent businesses that are smaller. You can see the difference when you compare transaction costs. Debit cards cost about 12 cents for each signature transaction. Credit card transactions, though, are figured as a percentage of each transaction – right around 3%. For example, if you use a debit card to purchase something for $100, the merchant only pays 12 cents. That 12 cents turns into $3 with a credit card. The difference is even more obvious as the purchases get bigger. What if you were paying $500 instead of $100? With debit, the merchant still pays a 12-cent fee. But when you use credit, the merchant now pays a $15 charge.

The CFIB is hoping that education about how things work is one way to help you to choose a payment option that doesn’t cost everyone. If shoppers step up, and curtail their credit habits, it will send the message that credit card issuers are out of order.

You might enjoy using your credit card, and its perks. Before making a decision about payment, think about the advantages of perks against the long-term costs of using your card.