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Using Your Credit Card Increases Autopac Costs

The Canadian Federation of Independent Business is urging Manitoba Public Insurance to save Manitoba drivers millions of dollars per year by stopping acceptance of credit cards for payment of auto insurance premiums.  Their Provincial Affairs Director Elliot Sims says over the past five years MPI has paid over 40 million dollars in credit card processing fees but there is a cheaper way.  He says by comparison debit cards which are the competing form of electronic payment has processing costs of a flat fee between 5 and 10 cents per transaction.  He says in MPI’s case it’s a difference between $5.77 per transaction on average to accept a credit card or 5 to 10 cents on average to accept a debit card.

             

Sims says all measures that can lower costs without impacting service levels must be explored and implemented.

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