Chris Andrews, executive director, Canadian Nursery Landscape Association

The Bank of Montreal and Royal Bank Merchant Services recently merged to create a joint venture called Moneris Solutions.

     This new company can provide both your Visa and MasterCard merchant services. The MasterCard merchant discount rate is a low 1.65 per cent and the Visa merchant discount rate rests at two per cent. Members do not need to use both Visa and MasterCard at Moneris Solutions; you may choose to have your MasterCard merchant services with Moneris Solutions and your Visa merchant services with Toronto Dominion Bank. Moneris Solutions will forward all your deposits for Visa and MasterCard to any financial institution of your choice (“Flex Banking”). There is no charge for “Flex Banking” when depositing to the Bank of Montreal or Royal Bank. Members will pay $10 per month to deposit in any other bank.

Changes to Merchant MasterCard rates
Changes continue in the MasterCard world, with the latest being an increase in the interchange rate, namely, the rate MasterCard International charges banks for processing MasterCard transactions. This means that all the banks in Canada will increase their merchant discount rates to their merchant customers.

     According to an industry insider, the rate will increase to 1.7 per cent from a 1.25 per cent interchange rate for MasterCard banks. This translates to higher expenses for all MasterCard merchants in Canada.

     While the Canadian Nursery Landscape Association (CNLA) has, in the past been able to maintain its current electronic merchant discount rate of 1.65 per cent, despite three increases to the interchange rate over the past three years, it may be difficult to avoid an increase this time. However, we expect there will be fewer expenses and a lower than normal increase to the merchant discount rate for CNLA members, as a result of our negotiating and joint buying power. CNLA will work closely with Moneris Solutions to ensure these rates remain competitive for our members.

     For further information, please contact the CNLA.

Attention all Visa and MasterCard Merchants: Merchant discount statements are important
It is important to review your merchant statements on a monthly basis. If there are any omissions or errors, be sure to report it immediately to your bank. Merchant bank statements contain important information that can save you money in the long run.

     CNLA has received many calls in the past from members that have experienced unexpected increases to their merchant discount rates or other bank charges. These errors do occur and are not uncommon. Banks communicate to their merchants that they must inform them if there are any discrepancies in the reports. Merchants typically have only three months (maximum) to resolve errors and receive money that was overcharged.

     When dealing with the bank, be sure to keep all correspondence to and from the banks, including contact names and dates on which you spoke to agents. This information will assist you in resolving any disputes in your favour.

The current merchant discount rates offered to CNLA members are:

TD Bank Visa:1.75 per cent Scotiabank Visa:1.85 per cent Moneris Visa:2 per cent Moneris M/C:1.65 per cent

     Please contact CNLA if you have any disputes with the banks you are not able to resolve in an expedient manner.