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    Annoyed You Have To Pay To Use Your Credit Card

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    Pan Turk
    The article discusses how recent changes to credit card interchange fees in Canada have negatively impacted consumers. It argues that the new rules have reduced affordability and increased costs for many Canadians by allowing retailers to pass on higher interchange fees. The author, an expert on consumer debt politics, believes the government should implement policies to protect consumers from these rising fees.

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    Annoyed You Have To Pay To Use Your Credit Card

    Uploaded by

    Pan Turk
    21 views5 pages
    The article discusses how recent changes to credit card interchange fees in Canada have negatively impacted consumers. It argues that the new rules have reduced affordability and increased costs for many Canadians by allowing retailers to pass on higher interchange fees. The author, an expert on consumer debt politics, believes the government should implement policies to protect consumers from these rising fees.

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    Annoyed you have to pay to use your credit card

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    The article discusses how recent changes to credit card interchange fees in Canada have negatively impacted consumers. It argues that the new rules have reduced affordability and increased costs for many Canadians by allowing retailers to pass on higher interchange fees. The author, an expert on consumer debt politics, believes the government should implement policies to protect consumers from these rising fees.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    21 views5 pages

    Annoyed You Have To Pay To Use Your Credit Card

    Uploaded by

    Pan Turk
    The article discusses how recent changes to credit card interchange fees in Canada have negatively impacted consumers. It argues that the new rules have reduced affordability and increased costs for many Canadians by allowing retailers to pass on higher interchange fees. The author, an expert on consumer debt politics, believes the government should implement policies to protect consumers from these rising fees.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    1

    Annoyed you have to pay to use your credit card?

    Fuad Suleymanov

    City University of Seattle

    English Composition 102

    Dr. Rami Mustafa

    12/08/2022
    2

    Annoyed you have to pay to use your credit card? You should be

    In the article "Annoyed you have to pay to use your credit card? It would help if you

    were," Katie Verigin, who has studied the politics of consumer debt. Verigin argues that

    amendments in credit card fees have enabled companies to force Canadians to pay higher

    interchange fees globally (2022). She claims that the people have built a structure where credit

    has become a need instead of a luxury. The new rules in Canada about interchange fees have

    reduced affordability and increased the cost of living. Verigin proposes that the administration

    should protect consumers from higher interchange fees.

    Summary

    Business entities took the cost of using credit cards to diversify payment methods.

    Businesses pay an interchange fee for every transaction paid using a credit card. Following the

    recent new rules in Canada, retailers have been given the power to pass these interchange fees to

    consumers; hence, the Canadian government has neglected consumer protection. According to

    Verigin, many Canadians are struggling with a high cost of living; hence implementing new

    policies should be done in the public's best interests (2022). The change in credit card fees

    enables companies to continue forcing people to pay the highest interchange fees instead of

    increasing business margins or reducing consumer costs. Businesses have been forced to

    negotiate their rates with payment companies independently, which means that institutions with

    resources lower their rates after a successful negotiation while small businesses experience

    squeezed profit margins. Many Canadians live paycheque to paycheque; hence the idea that they

    can easily switch to cash or debit payment methods ignores the reality that many Canadians are

    struggling to meet their basic needs. Credit cards allow consumers to build their credit scores to
    3

    be eligible to access loans, buy homes and even rent apartments, making it a necessity in the

    lives of many Canadians.

    Analysis

    The author of this article has studied the politics of consumer debt, which means she is

    well-informed about credit card payment methods. She uses logos and ethos to persuade the

    government to implement new policies that protect consumers by making the payment method

    affordable and reducing the cost of living. The author uses facts to demonstrate that Canadians

    pay the highest interchange fees globally, hence the need to change the policies that give retailers

    the power to pass the interchange fees to consumers. According to Verigin, Canadians pay

    approximately 1.78% interchange fees globally, which is higher than that of the United States,

    which is 1.73% and six times higher than European countries, which pay 0.3% (2022). This

    article's strengths are that it understands the topic of discussion and the language to use and

    avoids bias by supporting arguments with numerical figures.

    Response

    After analyzing the article, the author has sufficient knowledge about the politics of credit

    card payments and uses language that the audience can understand easily. The author uses facts

    such as numerical figures as evidence to convince the reader about the credibility of the

    information and support her argument against the new policies introduced by the Canadian

    government. The author believes introducing new interchange fees without neglecting consumer

    policies would prevent the exploitation of consumers by well-established business organizations.

    Conclusion

    The Canadian government needs to solve the issue of high interchange fees,

    making credit cards necessary. Considering the high living standards, increasing an extra amount
    4

    in the interchange fees is unreasonable. The increase in interchange fees demonstrates massive

    negligence of consumer protection by the Canadian government.


    5

    References

    Kearns, J., & Manners, P. (2018). The impact of monetary policy on the exchange rate: A study

    using intraday data. Seventh issue (December 2006) of the International Journal of

    Central Banking.

    Mussa, M. (2019). The exchange rate, the balance of payments, and monetary and fiscal policy

    under a regime of controlled floating. In Flexible Exchange Rates and Stabilization

    Policy (pp. 97-116). Routledge.

    Verigin, K. (2022). Annoyed you have to pay to use your credit card? You should be. CBC

    Opinion.

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