New details of credit card fee reductions reveal a big win for small business
TORONTO, May 18, 2023 /CNW/ - Coming reductions in credit card processing fees will be a big win for small businesses, says the Canadian Federation of Independent Business (CFIB).
Today, Deputy Prime Minister Chrystia Freeland unveiled important 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% average interchange rate for in-store sales and a 0.1% cut in ecommerce fees. CFIB's initial analysis shows that nearly three-quarters (73%) of its members will benefit from these rate reductions of up to 27%.
"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.
For over a decade, CFIB has served as the watchdog for small businesses on costs and changes in Canada's payments industry. CFIB will be working to 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.
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada's largest association of small and medium-sized businesses with 97,000 members across every industry and region. CFIB is dedicated to increasing business owners' chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
SOURCE Canadian Federation of Independent Business
For media enquiries or interviews, please contact: Dariya Baiguzhiyeva, CFIB, 647-464-2814, public.affairs@cfib.ca
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