Industry committee  I just want to clarify what I said earlier. That may work in my particular business model, because right now I'm paying 2.21%, so 1.5% would be good. But I agree that the costs need to be determined. Of course, it's a business, so I respect that they want to make some money, but it seems right now that what they're doing is dipping in everywhere and gouging all over the place.

Finance committee  I just want to clarify what I said earlier. That may work in my particular business model, because right now I'm paying 2.21%, so 1.5% would be good. But I agree that the costs need to be determined. Of course, it's a business, so I respect that they want to make some money, but it seems right now that what they're doing is dipping in everywhere and gouging all over the place.

Industry committee  The thing is it started last April and it just gradually got worse. I will gladly provide you with my statements for the past year to show how it has progressed—so much so that most recently, in the last month I have here in front of me, one of the cards I process cost me 3.66%.

Finance committee  The thing is it started last April and it just gradually got worse. I will gladly provide you with my statements for the past year to show how it has progressed—so much so that most recently, in the last month I have here in front of me, one of the cards I process cost me 3.66%.

Industry committee  It will have a dramatic effect on the restaurant industry because our margins are so thin or low, particularly in Newfoundland. The rate I'm paying for Visa and MasterCard is higher than the average profit margin in Newfoundland. I actually brought all of my stuff. I have my merchant agreement, statements, and the whole thing.

Industry committee  Exactly. It all works out to be dollars and cents and labour, because we only have two choices or things we can control in our industry: the cost of our goods sold, and our labour costs, generally speaking. Labour costs are getting harder and harder to manage every day, with increased minimum wages and labour shortages and everything else.

Industry committee  For the volume of sales that we do, I would think that somewhere around 1.5% is a fair interchange fee. It's no hassle to them; we process it and look after all the paperwork. It's all transfer money; there's no one touching money. Based on the volume we do, our industry is something like a $454 billion industry in Canada.

Finance committee  It will have a dramatic effect on the restaurant industry because our margins are so thin or low, particularly in Newfoundland. The rate I'm paying for Visa and MasterCard is higher than the average profit margin in Newfoundland. I actually brought all of my stuff. I have my merchant agreement, statements, and the whole thing.

Finance committee  Exactly. It all works out to be dollars and cents and labour, because we only have two choices or things we can control in our industry: the cost of our goods sold, and our labour costs, generally speaking. Labour costs are getting harder and harder to manage every day, with increased minimum wages and labour shortages and everything else.

Finance committee  For the volume of sales that we do, I would think that somewhere around 1.5% is a fair interchange fee. It's no hassle to them; we process it and look after all the paperwork. It's all transfer money; there's no one touching money. Based on the volume we do, our industry is something like a $454 billion industry in Canada.

Industry committee  If they base the debit transaction on a percentage, looking at what I did last year in debit, which was 17% of my sales, it would actually cost me $4,500, according to the rate that Visa offers me right now. I'm assuming that it wouldn't be anything less than that, and I'm assuming that debit costs would go up if they were on a Visa debit card.

Finance committee  If they base the debit transaction on a percentage, looking at what I did last year in debit, which was 17% of my sales, it would actually cost me $4,500, according to the rate that Visa offers me right now. I'm assuming that it wouldn't be anything less than that, and I'm assuming that debit costs would go up if they were on a Visa debit card.

Industry committee  However, with that said, I can't afford to give a discount to accept cash. Our profit margins are so thin as they are, so for us to pass on a discount to accept cash, you'd have to give a fair discount.

Finance committee  However, with that said, I can't afford to give a discount to accept cash. Our profit margins are so thin as they are, so for us to pass on a discount to accept cash, you'd have to give a fair discount.

Industry committee  I have a couple of businesses in St. John's, in Ms. Coady's riding. This past summer I opened a new business, a microbrewery, restaurant, and pub. When I did my business plan, of course, I based it on the credit card rate being what I had negotiated with the Canadian Restaurant and Foodservices Association, and it was 1.57% at the time.