Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nyse  >  MasterCard    MA

My previous session
Most popular
News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

MasterCard : New Merchant Fee Deals Provide Relief for Foodservice Businesses and Consumers

share with twitter share with LinkedIn share with facebook
share via e-mail
08/10/2018 | 08:30am EST

(GlobeNewswire) - Restaurants Canada welcomes todays announcement from Finance Minister Bill Morneau and Mary Ng, Canadas new minister for small business and export promotion, regarding new deals with major credit card companies to reduce the fees they charge Canadian businesses.

The voluntary, five-year deals with Visa, Mastercard and American Express will provide much needed relief for foodservice operators, who spend billions of dollars each year on credit card interchange and processing fees.

This is a step in the right direction, said Shanna Munro, Restaurants Canada President & CEO. Eighty per cent of our members tell us that interchange fees hurt their bottom line. We are pleased to see the government respond to their concerns and we will continue to work towards achieving greater relief as soon as possible. Small- and medium-sized businesses struggle most with these fees these are middle-class Canadians and when their businesses thrive, so do their communities.

Visa and Mastercard have committed to lower the fees they charge businesses to an average annual effective rate of 1.4 per cent down from 1.5 per cent for a period of five years, and narrow the gap between the highest and lowest rates they collect from retailers.

American Express has promised to provide more fairness and transparency as part of a separate voluntary agreement that recognizes its unique business model.

Merchant fees in Canada are among the highest in the world and have long been a major concern for foodservice operators across the country. Despite modest reductions negotiated in 2014, the billions of dollars that merchants pay annually in interchange and other fees continues to rise as consumers are enticed by premium reward cards. The rewards are financed not by the card companies or issuers, but by restaurateurs and other small businesses.

On a typical restaurant meal, the credit card issuer often makes more profit than the restaurateur, said David Lefebvre, Vice President, Federal & Quebec. We look forward to continuing our work with government creating a fair and level playing field for all restaurant owners and entrepreneurs.

As a next step, Restaurants Canada is proposing that the federal government impose a cap on interchange fees and prohibit credit card issuers from increasing and adding new fees without regulatory oversight. The association is also looking to government to remove interchange fees from the tips and taxes portion of purchases.

About Restaurants Canada

Restaurants Canada (formerly CRFA) is a growing community of more than 30,000 foodservice businesses, including restaurants, bars, caterers, institutions and suppliers. We connect our members from coast to coast, through services, research and advocacy for a strong and vibrant restaurant community. Canadas restaurant industry is an $85 billion industry, directly employs 1.2 million Canadians, is the number one source of first jobs and serves 22 million customers every day.

Marlee Wasser

Restaurants Canada



(c) 2018 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info)., source Middle East & North African Newspapers

Stocks mentioned in the article
ChangeLast1st jan.
AMERICAN EXPRESS COMPANY 1.00% 100.48 Delayed Quote.4.37%
MASTERCARD 1.35% 202 Delayed Quote.7.08%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on MASTERCARD
11:08aMASTERCARD : changes rules on automatic billing for free trials
10:45aMASTERCARD : changes rules on automatic billing for free trials
10:44aMASTERCARD : changes rules on automatic billing for free trials
01/18MASTERCARD : Square launches debit card for SMBs
01/17MASTERCARD : Cracks Down On ‘Free Trial' Subscriptions
01/17MASTERCARD : new policy aims to prevent unwanted subscriptions
01/17American Express misses estimates on slowing customer spending; shares drop
01/17MASTERCARD : tweaks policy to disable auto-billing after free trials
01/16MASTERCARD : New Global Partnership Between NYC & Company and Mastercard Will En..
01/16MASTERCARD : New Global Partnership Between NYC & Company and Mastercard Will En..
More news
Financials ($)
Sales 2018 14 948 M
EBIT 2018 8 382 M
Net income 2018 6 522 M
Finance 2018 2 417 M
Yield 2018 0,50%
P/E ratio 2018 32,53
P/E ratio 2019 26,93
EV / Sales 2018 13,8x
EV / Sales 2019 12,1x
Capitalization 209 B
Duration : Period :
MasterCard Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends MASTERCARD
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 39
Average target price 227 $
Spread / Average Target 13%
EPS Revisions
Ajaypal S. Banga President, Chief Executive Officer & Director
Ari Sarker Co-President-Asia Pacific
Richard Neil Haythornthwaite Chairman
Edward McLaughlin President-Operations & Technology
Martina T. Hund-Mejean Chief Financial Officer
Sector and Competitors
1st jan.Capitalization (M$)
MASTERCARD7.08%208 624
VISA4.97%305 282
AVAST0.42%3 530
MIMECAST LTD2.74%2 075