By Katie Paterson
Some small business owners say banks are starting to address their concerns, but high fees are still hurting their business.
Ali Fadelalla, owner of Ali Babba Fast Food on Somerset Street, says that he had to pay $50 for an Internet banking machine in his restaurant and pays even more for the associated fees.
He says the Royal Bank, which issued the Visa, charges three per cent on all of his restaurant’s transactions. The customer also pays a percentage of the bill to the bank.
“They charge the business and the customer so they’re getting paid twice, which is not fair,” Fadelalla says.
A study done last year by the Canadian Federation of Independent Business (CFIB) says small firms are more satisfied with their financial institutions than in previous years, but fees are still a big concern.
CFIB member Andre Piché says that a major gripe of small business owners is having to pay banking fees.
All banks charge fees for allowing Interac payments, accepting credit cards and cheques, telephone baking, online banking and automated banking services.
The Federation’s study ranked banks according to the satisfaction they received from small businesses.
Toronto-Dominion Bank ranked ahead of CIBC, Scotiabank, Bank of Montreal and Royal Bank, which followed in that order.
A new subsidiary of CIBC, called Bizmart, has been developed to address this concern. Bizmart was set up in response to complaints from small business owners that banks failed to meet their needs.
Bizmart is fee-free banking. That means business owners pay nothing for offering Interac, or other credit card services to their customers.
Online banking and chequing are also free of charge.
Ron Conlin, a bank manager with Bizmart, says the only fees business owners will see are by using bank machines other than CIBC or Bizmart.
Toronto Dominion Bank, the Bank of Montreal, Royal Bank and Scotiabank are also responding. They each offer special business accounts for small businesses, loan options and free Internet banking.