Apple Pay isn’t in Canada yet, but the Canadian government is working on legislation that would make it legal for merchants to pass mobile payment fees to the customer and have the option to reject mobile payments, MobileSyrup reported.
“Recently, the two biggest credit card networks in Canada, Visa and MasterCard, voluntarily lowered the fees they charge those merchants after thousands of businesses lobbied the government to force such a change. Credit card companies earn money through a cycle of small fees that involve the banks, the merchant services companies and the merchants themselves; the results of such a cut, which would amount to an average of 1.5 percent per transaction, are significantly lower than the 2.5-2.7 percent merchants generally pay per transaction today,” the article reported.
No change is expected short-term that would impact merchants, but long-term this potential legislation could impact Apple Pay’s launch into Canada. The push comes from smaller and medium size businesses that have argued high interchange fees has forced them to charge more for products.
Though the legislation is in the works, it may also be tabled for the time being, MobileSyrup reported. Because Apple pay adds another layer of the interchange cycle, some merchants are anticipating cost increases, the article said. Not all card companies differentiate between payments made with a card and mobile device though. Visa and MasterCard are two examples. Some merchants are charged less because EMV is considered to be more secure payment method.
“But with the impending proliferation of mobile payments, beginning with bank-and-carrier partnerships like Rogers’ suretap and, soon, Apple Pay, merchants want the ability to cover higher costs,” MobileSyrup reported.
