In the hit movie The Martian Matt Damon's character, astronaut Mark Watney, is left in the dust of Mars alone to survive. He realizes that to live, "I'm going to have to science the sh*t out of this." There are some lessons in there for the Trudeau government as they conduct their consultations on Canada's wait-and-see innovation budget.
The fact that Walmart would be able to stop accepting Visa, historically one of the largest operators of credit cards, speaks mountains about the alleged market power of credit-card companies: It is simply not that big. You have significant market power when you are unavoidable, not when one party in the exchange simply wishes your prices would be lower.
As merchants cannot charge different prices for cash, credit or debit payments and obviously price-in the interchange fee, those consumers using cash (e.g. those on fixed incomes such as the retired) are, in effect, paying a hidden fee. So reducing interchange fees as far as possible make sense. Or does it?
First there was the obligatory second credit card everyone said I needed as an emergency backup. But it wasn't long before the card slots in my wallet began rapidly filling up. One soon held a blue Air Miles card, the one that requires years of collecting to get a one-way trip to Hamilton. From then on, the acquisition of cards continued unabated.
Entrepreneurs often underestimate how long it can take to get paid. Whatever the reason for late payments, it's another headache taking your focus away from what you really love about your business. Here are some simple strategies you can adopt to help encourage timely payment and even speed up the process.
If you want to know what's bugging the average small business owner, ask for his or her opinion about the credit card processing fees. Every time you buy something with a credit card, it costs the merchant. And here's the rub: Visa and MasterCard rules say that merchants must accept all the cards within their brand. That isn't fair, and consumers are paying the price for premium cards. Instead of charging the cardholders a bit more, merchants are forced to raise their prices on everyone to make up the difference.