• A credit card is a convenient and flexible payment tool for both consumers and retailers.
• Credit cards provide interest-free credit from the time of purchase to the end of the billing period.
• Since more than 70% of Canadian households pay their credit card balance in full each month1, the effective interest
rate for the majority of credit card users is zero.
For those who choose to carry a balance:
• Credit cards offer access to unsecured credit (no collateral required)
There are more than 60 low interest rate cards on the market.2
The bottom line:
• Canadian consumers have tremendous choice in selecting a credit card.
The majority of Canadians use their credit card wisely.
• Credit cards offer valuable benefits for both consumers and retailers.
Credit card benefits
A credit card is a convenient and flexible payment tool
accepted in 170 countries and at 30 million locations
• Access to unsecured credit (no collateral required
against amounts charged).
Interest-free payment from time of purchase to the
end of the billing period.
Instant payment of purchases, allowing for instant
receipt of goods and services.
Fraud protection with zero liability to the consumer in
cases of fraud.
• Other rewards and benefits, such as air travel
points, car insurance, damage and loss insurance,
and extended warranty programs.
For Retailers that accept credit cards:
• Fast, guaranteed payment.
• Reduced cash handling time and costs, and reduced
security risks related to handling cash.
Increased sales; ability to offer customers a variety
of payment options.
Competition and choice
When making a purchase, consumers can choose to use
cash, cheques, debit cards, as well as unregulated
electronic payments services like PayPal.
When it comes to choosing a credit card, banks offer
consumers a wide variety of products. Customers may
choose among stand