According to CBC News, Canadian consumers could get some relief when paying with credit cards in the near future. A new budget is being released on Tuesday Rand Finance Minister Jim Flaherty has said that any additional items added to the budget will be added with consumers in mind. Regulations could be put in place that limit charges on credit card transaction fees, which could help both consumers and retailers. If that does happen, then every business owner should not only encourage debit and credit cards in store, but also online. So owners who want to set their business apart from the competition should invest in the ability to accept credit cards on websites and encourage online transactions.
In Canada, online shopping is less popular than it is in the United States, in part because of shipping and credit card fees. If Flaherty reduces charges, however, more consumers will be comfortable using their cards online and spending will increase. Businesses who want to take advantage of that will have to make sure that they can accept credit cards on websites. Without that, they won’t be able to cater to what should be a rapidly growing number of people who shop online.
Stats compiled by the Canadian Banking Association say that there are just under 74 million MasterCard and Visa cards alone currently circulating in Canada. If legislation changes, that number could skyrocket, and businesses who fail to learn how to accept credit cards online could fall behind. In the long run, that could prove to be highly detrimental.
Owners and managers who have littler or no training or experience with eCommerce might find that partnering with merchant account services — who might actually take a bit of a hit if card fees are reduced — can be a great help. They are comprised of talented professionals who can provide both the proper software and helpful insights. It can be tempting to do all work in-house, but partnering with the right people could help businesses be sure to have the infrastructure needed to provide a great consumer experience to online shoppers.
It won’t be until later today that businesses will find out whether or not the changes on credit card fees are actually going to be made, and Flaherty is under pressure from several different groups to try to make the proper changes. It is hard to project exactly what will happen, though lowering credit card fees could earn him more votes in the future, so chances are good that he will. If he does, every business should accept credit cards on websites to help build a larger customer base.