Three-in-five with a points card say they would stop using it if surcharge became universal. The latest data from the non-profit Angus Reid Institute asks credit card holders – 95 per cent of Canadian adults – how the potential for a new credit charge surcharge might affect their purchasing behaviour. Three-in-ten (28%) say an additional 1.5 per cent surcharge on would push them away from patronizing small businesses in their community, while more than two-in-five (44%) would stop shopping at major retailers that charged the fee.

By DESIBUZZCanada Staff

VANCOUVER – Three-in-five with a points card say they would stop using it if surcharge became universal.

A new poll says after the year that many Canadians have endured financially, for many the idea of paying a surcharge on regular credit card purchases may just be a swipe, tap, or pin pad too far.

The latest data from the non-profit Angus Reid Institute asks credit card holders – 95 per cent of Canadian adults – how the potential for a new credit charge surcharge might affect their purchasing behaviour. Three-in-ten (28%) say an additional 1.5 per cent surcharge on would push them away from patronizing small businesses in their community, while more than two-in-five (44%) would stop shopping at major retailers that charged the fee.

Some retailers have already begun to add such a charge to purchases following the settlement of a class-action lawsuit with Visa and Mastercard. Merchants must make the fee clear to the customer, but the risk herein is evident.

With respect to smaller local businesses, Canadians are more forgiving. More than one-in-ten (13%) say they would just absorb a 1.5 per cent fee in this situation, while three-in-five (59%) would use another form of payment. If the business were a major national or international retailer, 10 per cent would absorb the cost and fewer than half would break out cash or debit.

As the industry and consumers adjust to this new reality, credit card loyalty programs are at risk of being tapped out. Four-in-five credit card holders (82%) say their primary purchasing card is connected to a loyalty program. There is palpable concern that this increased fee may reduce or altogether mitigate that benefit. Just 16 per cent of loyalty program users say a surcharge of 1.5 per cent would not deter them from using their current card, while the majority (61%) say this would make them reconsider and do away with their current primary card.Link to the poll here: www.angusreid.org/