Credit card fee reductions announced for small businesses
by CM staff
CFIB will ensure that the full savings of this agreement are passed on to small business owners without getting swallowed up by card processors offering blended rates.
From left to right: CFIB President Dan Kelly, Deputy Prime Minister Chrystia Freeland, Member of Parliament for Brampton South, Sonia Sidhu and Minister of International Trade, Export Promotion, Small Business and Economic Development, Mary Ng. (Photo: CNW Group/Canadian Federation of Independent Business)
TORONTO — Coming reductions in credit card processing fees will be a win for small businesses, says the Canadian Federation of Independent Business (CFIB).
Deputy Prime Minister Chrystia Freeland shared details from the federal government’s agreement with Visa and Mastercard to lower credit card fees at a CFIB member bookstore in Brampton, Ontario. CFIB president Dan Kelly was present at the announcement along with other small business owners.
“This is a significant agreement as many Canadian small business owners will now have access to a special, lower interchange rate designed specifically for them,” Kelly said.
Small businesses with up to $300,000 in annual Visa sales and $175,000 in annual Mastercard sales will now qualify for a 0.95 per cent average interchange rate for in-store sales and a 0.1 per cent cut in ecommerce fees. CFIB’s initial analysis shows that nearly three-quarters (73 per cent) of its members will benefit from these rate reductions of up to 27 per cent.
“CFIB thanks Deputy Prime Minister Freeland and the Presidents of Visa and Mastercard for this significant accomplishment in support of Canada’s small business community. Reducing fees for small businesses in processing online transactions and providing additional help with online fraud will be of particular help in encouraging more small firms to go digital,” Kelly added.
CFIB will ensure that the full savings of this agreement are passed on to small business owners without getting swallowed up by card processors offering blended rates. In addition, CFIB will be encouraging government to deliver on its commitment to ensuring other card brands—including American Express—take similar measures. CFIB will be calling for a faster implementation than the current fall 2024 target as well as a regular review of the size thresholds to ensure more small businesses can benefit from these lower rates in the future.
