Even though it is not officially winter, trust me, winter is upon us! In my neck of the woods, we have already had a few snowfalls and the temperatures have dipped to the minus double digits a few times. Now is the time for big fuzzy slippers, woolen sweaters, cozying up in front of a roaring fire, baking big batches of oatmeal cookies, and oh yeah, Christmas shopping!
I have already picked up a few little things from some local merchants, but Santa’s shopping list is still pretty long! When spending our hard-earned dollars, be it at Christmas or any time of the year, as a family, we have always made it a priority to support local businesses. From McPhee’s Bakery to Cochran’s Market and The Barrels Head Restaurant to PC Butler Computer Repair, we try to encourage the businesses within our community.
Another thing we always try to do is pay for our purchases/services by cash or debit. Also, whenever humanly possible, we avoid using a credit card. With a credit card, not only do we pay a hefty interest on any outstanding balance, but the merchant must pay a percentage of an item’s retail cost. Compare this to a debit transaction where the business pays only a single flat fee, regardless of retail purchase price.
What many Canadians don’t realize is that the way we choose to pay our favourite merchants makes a monumental cost-saving difference to that merchant’s bottom line. Consider this:
- When we pay using a credit card instead of Interac Debit, the merchant may pay up to eight times more in payment acceptance costs. For example, a small business with $500,000 in sales can save more than $5,000 annually if their customers pay using Interac Debit or Interac Flash for their purchases instead of credit cards.
- When we pay with Interac Debit, a merchant pays around $0.06 per transaction to its payment processor – a single flat fee regardless of retail purchase price. From that amount, Interac Association receives a fee of $0.006362.
- In comparison, if we choose to pay with a credit card, the merchant pays 1.5 to over 3 percent of the item’s retail cost for interchange alone, not including other possible fees. As a result, on a $100 purchase, based on current rates, a merchant pays between $1.50 and $3.00 for the interchange.
- So looking at this last example of a $100 transaction, for the merchant we see these possible scenarios:
- CREDIT CARD TRANSACTION – merchant pays between $1.50 and $3.00
- INTERAC DEBIT TRANSACTION – merchant pays only a flat fee of $0.06
It is pretty plain to see that an Interac Debit transaction results in a substantial saving to the merchant, which can then be passed on to the customer. Plus, “life’s just better when you use your own money”.
I hope you will take a couple of minutes and watch these two short videos and listen to the stories.
These merchants are just two examples of the thousands of small businesses across Canada. I think we need to think about our favourite community merchants and understand the impact of pulling out our credit card versus our Interac debit card.
Did you know that with Interac Debit you have:
- Protection from fraud tactics such as skimming, duplicating and electronic pick-pocketing.
- Chip-enabled Interac Debit and Interac Flash cards are an extremely secure option for both the consumer and the merchant.
- You are protected under Interac’s Zero Liability policy.
As you can see, there is more than one way to support local merchants. Purchasing their products/services is one and paying with Interac Debit is another! I have complete confidence when using Interac; they are a well-known and trusted Canadian payment company. Plus, I love knowing this payment option is supporting our local businesses!
For more information and to connect with Interac be sure to visit them on:
~ FACEBOOK ~ TWITTER ~ INSTAGRAM ~ YOUTUBE ~
HASHTAG – #YourChoiceMatters
TWITTER PARTY DETAILS
You are invited to join us for a fabulous twitter party where we will be talking about all things Interac Debit and Interac Flash related!
Be sure to RSVP and follow the host and co-host.
See you at the party!
When – December 3rd, 9PM EST
Host – @INTERAC
Co-Host – SJConsulting_CA
RSVP – Via linky below
Open to Canadian residents who participate in the #yourchoicemattersTwitter Party administered by SJ Consulting on Wednesday, December 3rd between 9:00 and 10:00PM EST, using the hashtag #yourchoicematters.
Disclosure: I am participating in the Interac campaign managed by SJ Consulting. I received compensation in exchange for my participation in this campaign. The opinions on this blog are my own.
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