Credit card fees for small businesses dipping lower as deal set to take effect
Posted October 18, 2024 7:45 am.
Credit card fees for small and medium-sized businesses are starting to dip lower as a deal reached between the federal government and the two major card companies is set to take effect.
Mastercard and Visa are reducing interchange fees by up to 27 per cent in a move that Ottawa says will save businesses about $1 billion over five years.
The change officially takes place Saturday, but some payment processors have already started to pass on the savings.
Canadian Federation of Independent Business has however noted that not all processors have been clear that they’ll pass on the savings, pointing for example to Stripe where not all customers will see a change.
Stripe says customers on its interchange plus plan, which sees charges vary by the type of transaction, will see the fee reductions passed through, but those on its flat-rate plan won’t because other fees and costs have gone up.
Other processors like Moneris have however said that qualifying businesses in both its interchange plus and flat rate model will see a reduction.
