I have read this article, the writer has metions that she went for dinner at a Chinese restaurant, and the owner refused to accept the credit card. As I continued read this arcticle, I realized that merchants have to pay a fee everytime we do a purchased, it costs about 1.5 to 3 per cent of each time purchased. We as a consumer, when we use either use Visa and Mastercard, we don't ever know about these surcharges because they're buried in the prices we pay, whether we use credit cards or not. So this is for cerdit card purchased, but if we use debit card instead, it's still charge fee, but it's cost much less, that's is because Canada's debit card system is run by Interac, a non-profit cooperative of financial institutions.
CONNECTION
I have read this interesting arcticle and I really like it. In Accounting 12 class, we are on Chapter 14, which is the cash control and banking. Mr.Bach taught us that some merchants would refused for accepting credit card at some store, because merchants are trying to avoid paying a huge amount of fee, as I mention earlier in the summary that merchants have to pay a fee everytime we do a purchased, it costs about 1.5 to 3 per cent of each time purchased. I don't like paying for the cerdit card fee, so I don't want to get a credit card before I turn older. Therefore, it hurts me as a consumer.
REFLECTION
Canada has the highest cerdit card fees in the whole world. The credit card company which are Visa and Mastercard are making a lots of money from the cost of retailers and consumers about $5 billion each a year. Credit Card company are trying to make more and more he retailers and consumers. Consumers like me might be not even try to use Credit Card to make my purchased. If merchants keep facing higher credit card costs, many will be forced to raise their prices or stop accepting credit cards altogether. Then it's affecting us as a consumers and merchants, not just in Canada, but also affecting the whole world.
Resource: http://www.cbc.ca/money/moneytalks/2010/12/ellen-roseman-credit-card-surcharge-battle-will-ultimately-only-hurt-consumers.html
