Government lowers credit card fees for small business

The Canadian government has announced a special, lower interchange rate for small business. 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. Analysis from the Canadian Federation of Independent Business (CFIB) shows that nearly three-quarters (73%) of its members will benefit from these rate reductions of up to 27%. It 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. The organization 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.