Paying with credit costs consumers and small merchants more in the long run

Latest news – First-ever credit card fee reduction announced

In November 2014, Visa and MasterCard announced the first-ever reduction in the interchange fees that businesses pay to accept credit cards, and a freeze in those rates for an additional five years.


Empowering Entrepreneurs

Credit Card Fees


Every time you pay with a credit card at your local restaurant, drycleaner, craft store, or other business, the credit card company takes a 2%-3% cut. For many small shops, this will wipe out their entire profit margin.

Merchants: you can now order CFIB and Interac branded materials free of charge to encourage your customers to use debit and cash!

Merchants work hard to earn and keep your business, but when they are forced to absorb this hidden cost, they have to raise prices. Ultimately, the convenience you think you’re getting for free actually comes at a cost.

How can you help? Consider paying with cash or debit. It helps the merchant, and ultimately helps keep prices as low as possible. Even better, you’re reinvesting in the local economy!

It’s your money. You decide where it goes.

Did you know? 

  • Fees to process most credit cards range from 1.7% to 3% of the sale;
  • Total costs for “premium” credit cards, like Visa Infinite or MasterCard World Elite, are even higher;
  • Processing fees for a $400 item can be more than 100 times higher with credit cards than debit, and if that item is returned, the merchant has to pay fees on the refund, too;
  • Premium cards carry even more fees that are completely hidden from merchants until they receive their monthly statements.

Does the card in your wallet cost small business a fortune?
After significant negotiations with Canadian credit card companies, CFIB released a comprehensive list of the cost levels of nearly every credit card in the wallets of Canadian consumers and businesses


The Credit and Debit Card Code of Conduct
CFIB was the group that first proposed a Credit and Debit Card Code of Conduct. The Code has protected Canada's low-cost flat-fee debit system and, for the first time ever, provided merchants with some power in their relationship with the credit card industry. The Code's effectiveness has already been tested several times and it has passed on every occasion. We have used the Code to resolve issues on exit penalties for fee changes in processing agreements, debit cards for e-commerce, and better disclosure in merchant contracts and statements. We have since released a report celebrating the many substantial accomplishments of the Code, as well as noting areas for further improvement.

More info

Timeline of CFIB’s fight to keep payment processing fees low 

CFIB brings the small business view on credit cards to decision-makers in Ottawa and on Bay Street



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