AllistonGT
Well-known member
If you pay yourself in dividends you don't.
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Let’s make things more expensive for customers…
- Thread starter mimico_polak
- Start date
If you are an employee with a t4, you pay both parts of cpp, ontario health tax etc. If you only draw dividend income, you dont have all the deductions. It can create other issues though for instance when trying to get a mortgage.
Gotcha. So the corp makes the income, and sprinkles the dividends to the owner.
Think my buddy did that when I was FIFO. He was at 300k/year into the corp but about 80-100 into the salary….after he bought the house.
‘Yo brother, what do you think of this 100k truck to replace the truck I just finished paying for!? Good idea right!?’
Thanks for the additional details @GreyGhost.
I have no doubt many retailers have increased their prices a proportionate amount to their credit card fees....but again, if the options are:
1/ Pay with my credit card and get anywhere from 1% to 5% bonus that goes directly towards holidays for us.
or...
2/ Pay with debit and pay the exact same amount but get 0% back.
It's stupid to not go with option #1.
And if you think retailers, especially big ones are going to drop their base prices before adding the surcharge to arrive back at the same prices we're paying now for those paying credit but it will actually be cheaper to pay debit/cash, I have some swampland in Florida to sell you.
I paid for ~20 years. I will get ~half of the trivial amount offered to a lifer. Interest rate on your cpp investment is ~3% above inflation but as wb found out, if you dont live long enough, the entire fund can be taken so you could actually have negative interest over 40+ years. Garbage.
Prices do come down either because of competition with other retailers, or new retailers entering the market. They do not, however, come down as quickly as they go up. The term for the phenomenon is called sticky prices.
And your options will be:
1. Pay 2% premium for 1% cash back
2. Pay exact price with debit/cash and no cash back
In my opinion it is a good thing that they are allowing retailers to impose the added costs, they should never have been blocked to begin with. The only downside other than a short term market hit, will be with online retailers that export their products.
Everyone seems to complain about how they're broke and oppressed by 'the man' only to go out and buy everything that can be imported with some form of debt. They send what money they do have to foreign countries, and the money they don't have to 'the man' (bankers).
I have an “elite” card from one of the big banks. There’s a separate (responsive) customer service line to the main one and the rewards are excellent. No need to buy travel insurance etc. I used to have an Amex but ditched it for this. The benefits easily outweigh the yearly fee…….so far.
BigEvilDoer
Well-known member
I referee beer league hockey… it’s decent at $30 per hour… we have 3 guys in my referee association that work for CRA… none of them claim it…
Good gig if I knew anything about reffing hockey!
robmack
Well-known member
So, no one is talking about the upcoming deadline for unattended terminals that may make payment with credit cards more expensive.
Visa rules state Effective 14 October 2020, all merchants must be EMV chip-enabled, with the exception of unattended cardholder-activated terminals (UCAT) merchants. UCAT merchants will have to be EMV-enabled by 14 October 2022.
UCAT includes terminals like parking meters, gas pumps, kiosks, etc. If these terminals are not EMV enabled by this month, then the merchant is in violation of this rule, and can be subject to fines for each swiped transaction. The fine can be substantial and might be passed onto the consumer by the merchant. So if you pay for parking or gas by swiping your card ( you insert the card then withdraw it), you might be seeing higher than expected charges for your transaction come next year.
Visa rules state Effective 14 October 2020, all merchants must be EMV chip-enabled, with the exception of unattended cardholder-activated terminals (UCAT) merchants. UCAT merchants will have to be EMV-enabled by 14 October 2022.
UCAT includes terminals like parking meters, gas pumps, kiosks, etc. If these terminals are not EMV enabled by this month, then the merchant is in violation of this rule, and can be subject to fines for each swiped transaction. The fine can be substantial and might be passed onto the consumer by the merchant. So if you pay for parking or gas by swiping your card ( you insert the card then withdraw it), you might be seeing higher than expected charges for your transaction come next year.
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There's also an option #3:
3. Simply leave your **** at the cash register and say you're not paying any surcharges, walk out, and go somewhere else.
I suspect a lot of retailers will get far more pushback than they expect if and when they try to institute surcharges like this. And I think you'll see takeup more limited that many might anticipate because of that....or some places might try it and then backtrack.
Reality is, this has been legal in the USA for a looooong time, since 2012 IIRC. Anyone who travels extensively in the USA has without doubt seen "cash vs credit" pricing at SOME smaller (but rarely large chain) gas stations. But at retail? It's insanely rare. Retailers who tried it found that it had three effects:
1- Some people will just not pay it and walk out when there is another local and convenient option without surcharges but similar or same pricing. If a smaller retailer stands to lose business to a Walmart (who for example do NOT charge surcharges in the USA, a great example), they lose business because of it.
2- That subsequently negatively impacts their profits as those people, plus others that hear of these charges simply stop shopping at retailers that charge them. And that sort of damage is hard to undo once you've inflicted it on yourself.
3- People who simply don't have the option to pay cash or debit for that big giant purchase they really can't afford to pay outright, but don't want to pay a surcharge on to purchase anyways (think: Big budget electronics like a $3000 bigscreen TV or whatever) might just opt to not purchase said item, so that impacts said retailer under both #1 and #2 - double whammy.
In the USA there is a lot of fighting going on with big companies with clout fighting the CC companies to just lower their fees, but we'll see where that goes.
It's important to remember that retailers benefit from credit cards in more ways than they might realize:
1/ People can buy **** they may otherwise not be able to afford, or afford all at once.
2/ Even in the case of fraud they get paid. If they force debit or cash onto customers again they might find that their fraud issues start climbing again. Counterfeit bills and stolen bank debit cards that have at least $100 in tap available on them (most are now $200+ now actually) are not fraud protected for vendors, and are still a thing.
Probably just a government inspection. Every gas station has to have all their pumps inspected every 2 years. When this happens typically the whole station gets shut down.
Gas pumps - Measurement Canada
Gas pump accuracy, compliance rates, inspection sticker.
Either that, or maintenance. Gas pumps have filters inside and such that need to be changed and other things serviced. It wouldn't be normal that htey'd do all the pumps at once however so I suspect it was the inspection thing above.
Relax
Well-known member
Retailer aren't forced to accept credit cards. Just like Uber Eats, it's an expensive service that allows them to sell to more potential customers. If the margins aren't worth it, then they're free to go back to cash only. But they want it all. The credit card companies knew this in the early days, which is why they had those rules. Otherwise, nobody would use them. I don't even understand how the class action lawsuit got off the ground. If they don't like the cost of the service, don't use it! Does this mean we can all start a class action lawsuit against those retailers because we don't like their higher prices too?
Mine is $100 on my card (tap) and phone/watch. Called the bank (RBC) to have it increased on account of not being able to fill the truck for under $100 and they said no. $100 is the hard limit, full stop. This is where it goes all Twilight Zone. I don't have tap enabled on my debit card. The station I always use is pump 'n pay, and their card readers were acting up for a few weeks in the summer. Wouldn't read my card's chip when I inserted it or the strip if I swiped it. Attendant said try tapping it. Tapping isn't enabled, but I did it to humour him. It worked
. They fixed the glitch in the system a few weeks later, and the tap no longer worked (like it shouldn't). Figure that one out.
Yes. Finding a lawyer to do it pro bono might be difficult. I sure wouldn't want to foot the bill.
Varies between banks.
Biometric tap limits (ie ApplePay) were in many cases dramatically increased however as $100 was artificially low in todays realities...and in reality, a biometric transaction is far safer than a chip and pin transaction even so it makes sense. I think my ApplePay limit is now $1000 or something like that for tap.
Telus was one of the first companies to immediately start with this. I guess their profits aren’t already huge enough, now they need to pass on a basic cost of doing business to their customers.
Anyhow, there has been talk of legal action online demanding a discount for those who pay via non credit card methods (seems only fair, no?), but I doubt it’ll get off the ground. As with many things on the internet, talk is cheap, action isn’t.
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