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Lower credit card fees for small business will take effect on October 19, 2024.

Credit cards may be handy for consumers, but the fees to accept credit cards add up quickly for merchants like you! Since 2008, CFIB has been negotiating with government and the credit card industry for:

  • Lower fees on interchange, GST/HST swipe, prepaid cards, and refunds
  • Clearer processing rates and fees, and more consistent language across processors
  • Continuous expansion of the Code of Conduct as new issues emerge, including ensuring merchants can challenge chargebacks in a fair and simple way
  • An independent system to resolve disputes between merchants and payment processors

In May 2023, the federal government announced an agreement with Visa and Mastercard for lower credit card merchant fees for small businesses – CFIB was proud to be part of that announcement. Under the new deal, small businesses with up to $300,000 in annual Visa sales and $175,000 in annual Mastercard sales will qualify for a 0.95% average interchange rate for in-store sales and a 0.1% cut in ecommerce fees. This represents fee reductions of up to 27% for the majority of small businesses.

Credit card savings by annual volume of Visa and Mastercard sales
Total credit card sales Old interchange fee: 1.4% New interchange fee: 0.95% Savings by card brand
Total Visa sales or total Mastercard sales Visa Mastercard Visa Mastercard Visa Mastercard
$50,000 $700 $700 $475 $475 $225 $225
$100,000 $1,400 $1,400 $950 $950 $450 $450
$175,000 $2,450 $2,450 $1,662.50 $1,662.50 $787.50 $787.50
$300,000 $4,200 $4,200 $2,850 N/A $1,350 $0
$475,000 $6,650 $6,650 N/A N/A $0 $0

*Total savings are estimates based on a split between Visa and Mastercard sales that is at or below the highest threshold amount for each brand. Your savings may vary based on your individual Visa and Mastercard sales.

CFIB has been staying close to the file since the announcement, and Visa and Mastercard have assured us that acquirers have what they need for implementation this fall. To ensure that the savings will be fully passed down to small businesses, we have sent a letter to acquirers asking them to confirm the fee reduction, implementation details and timelines, and how small businesses can exit their contract if the full reductions are not passed down. Keep an eye on this page as we will update it with their responses as they come in.

Name of the Company Committed to passing full savings to merchants Increasing rates ahead of fee reductions
Adyen Canada Ltd. Awaiting response Awaiting response
Bank of America Merchant Services (BAMS) Awaiting response Awaiting response
Chase Merchant Services Yes – October 19 No
Elavon Awaiting response Awaiting response
Fiserv - Previously known as First Data Canada Responded but did not provide requested details Responded but did not provide requested details
Global Payments Inc. Awaiting response Awaiting response
Moneris Solutions Acknowledged letter – working on a response Acknowledged letter – working on a response
People’s Trust / People’s Group Acknowledged letter – working on a response Acknowledged letter – working on a response
TD Bank Merchant Services Acknowledged letter – working on a response Acknowledged letter – working on a response
Nuvei Awaiting response Awaiting response
PSP Services Inc. /previously, PSiGate Merchant Services Awaiting response Awaiting response
LightSpeed Inc. Awaiting response Awaiting response
Shopify Inc. Awaiting response Awaiting response
Square Inc. Canada/Block Inc. Awaiting response Awaiting response

As of right now, we can confirm that Chase, CFIB’s payment processor of choice, has confirmed that they will pass down the full fee reductions to small businesses and that they will be ready to implement these new rates on October 19, 2024. Learn more about CFIB member exclusive pricing with Chase here or contact one of our Business Advisors here.

CFIB will continue to put pressure on the government to expand the agreement to additional credit card providers and to review size thresholds to benefit more small- and medium-sized businesses.

Credit Card Class Action Settlement: UPDATE

At the present moment, the review process for all three tiers of claims is ongoing. Notably, three out of the four waves of approved Undocumented claim payments have already been disbursed.

Undocumented claims:

  • The first batch of payments was issued around June 16, 2023.
  • The second batch was issued around September 22, 2023.
  • The third batch was issued after January 2024.
  • A fourth batch of approved Undocumented claims only, were issued on or around June 14, 2024. If you have been approved to receive a payment in the fourth batch of approved Undocumented claims, you would have been notified via email, therefore, please be on the lookout for an email confirmation that would be coming from Payment@CreditCardSettlements.ca - no need to reply.
  • If you need to request a replacement payment for an already approved claim that has been paid by the Claims Administrator or have questions about an approved payment, please direct your inquiry to Payment@CreditCardSettlements.ca.

Please note that those who have been approved to receive a payment for their Undocumented claim will receive an email from Payment@CreditCardSettlements.ca as soon as they receive approval.

Quebec Residents:

  • There is a delay in processing payments for all claims filed by Quebec residents, including newly approved claims and replacement payments. For more information on this delay please visit: https://www.creditcardsettlements.ca/.

Simplified Claims:

  • No Simplified claims payments have been issued. Final decision letters will be sent out when possible and the Claims Administrator does not expect payment to be issued until at least the end of summer 2024.

Documented Claims:

  • No Documented claims payments have been issued. The Claims Administrator does not expect them to be issued until at least the end of summer 2024.

For more details, please visit https://www.creditcardsettlements.ca

Learn More About CFIB's Credit Card Work On:

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Advocacy Timeline
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Merchant Advice
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Member Savings
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FAQ

Our fight over the years

Since 2008, CFIB has been negotiating with government and the credit card industry to level the playing field and lower processing fees for your business. 

2023

Deputy Prime Minister Chrystia Freeland, joined by CFIB President Dan Kelly, announces an agreement between Visa, Mastercard, and the federal government for lower credit card fees. Watch the announcement here.

CFIB continues to put pressure on government to:

  • Speed up the implementation timeline to be ahead of Fall 2024
  • Expand the agreement to additional credit card providers
  • Review size thresholds to benefit more small- and medium-sized businesses

2022

A settlement stemming from a class action lawsuit against Visa and Mastercard allows certain small- and medium sized merchants to claim up to $5,000. CFIB takes charge to get the word out about the settlement to make sure as many businesses apply as possible. 

Due to the lawsuit settlement, businesses are also now allowed to add a surcharge to certain credit card transactions, a key CFIB ask since the Credit Card Code of Conduct was first introduced! 

2021 - 2022

 

Next, the Liberal government commits to reducing credit card fees for merchants in the 2021 Federal Budget, and the 2022 Fall Economic Statement.  

2020

 

The second reduction on interchange fees for basic transactions, in addition to a new rate freeze for an additional 5 years. 

2019 - 2022

Following over a decade of CFIB advocacy, the Liberal government promises to lower credit card fees further.

The Liberal government commits to reducing credit card fees for merchants in the 2019 Liberal election platform.

2014 - 2015

CFIB negotiates with Visa, Mastercard, and the government to achieve the first reduction of 10% in interchange fees and a rate freeze for 5 years. 

Photo: Finance Minister Joe Oliver recognizing CFIB leadership by inviting Dan Kelly to join him at the podium for the announcement.

2010

CFIB writes and fights for the Credit Card Code of Conduct to give merchants like yourself more power with payment processors.

The Code of Conduct: 

  • Stopped mass distribution of premium credit cards
  • Allowed merchants to exit contracts after unplanned fee increases
  • Saved low-cost debit in Canada

2008

Small business owners are facing: 

  • Major cost increases of 20-30% month over month
  • Unfair, non-negotiable contracts with costly exit fees
  • Risk of 10x cost increase in the debit market 

    CFIB goes into action! 
    Over 50,000 petitions hand delivered to the Minister of Finance 

Tools & Resources

CFIB has created resources and posters to help raise awareness on the costs of accepting credit cards.

Paying_by_Cash_or_Debit_Poster_Portrait

Consider Paying by Cash or Debit - Portrait Poster
Consider_Paying_Cash_Debit_Poster

Consider Paying by Cash or Debit - Landscape Poster
More resources

Credit Card FAQ

I have received a letter about a Class action lawsuit due May 31, 2024, is it legitimate?

A few of our members have received a notice to submit a claim to participate in the Interchange Fee Settlement in the United States. Below is the information we received from our Canadian Credit Card Class Action contacts on these notices.

  • The claim period is currently ongoing in the U.S. and the deadline is May 31, 2024. 
  • The U.S. class administrator began sending claim forms to all known class members on December 1, 2023.
  • Should members have U.S. transactions and be interested, please have them contact the U.S. interchange settlement directly.
  • For all inquiries related to the US Interchange Settlement, class members can:

When will I receive my Credit Card Class Action Settlement / Claim money?

Undocumented claims:

  • Electronic transfers of funds will start to be issued during the week of May 21-26, 2023
  • Cheques will be issued and then mailed out approximately between May 31-June 2, 2023

Simplified & Documented claims:
The Claims Administrator is currently reviewing claims. You will need to wait until they are done their initial review to ensure that the amounts allocated to the different groups (small, medium and large merchants) are appropriate before the claims administrator can start paying out the claims.

What is a chargeback?

A chargeback is the reversal of a sale transaction that arises from a processing technicality, a customer dispute or fraudulent activity. Most chargebacks are violations of the rules and regulations established by a payment brand, such as Visa®, MasterCard® or debit network. Chargebacks are something every business wants to avoid, as they can result in lost revenue.

What are payment card networks?

American Express Canada Discover, The Exchange, Interac, Mastercard Canada, Visa Canada and UnionPay make up the seven major operators of payment card networks in Canada. To participate in these networks, merchants need to establish a contract with a payment service provider, such as an acquirer which provides them with access to the payment card network.

What is an acquirer?

An acquirer is an entity that enables merchants to accept payments by credit or debit card, by providing merchants with access to one or more payment card networks for the transmission or processing of payments.

What is surcharging?

A payment card surcharge is an additional fee that a merchant can choose to charge a consumer’s bill when they pay with a credit card at the point of sale. Find out more here.

What is the Credit Card Code of conduct?

Thanks in large part to our work on your behalf, Canada implemented a Code of Conduct for the payment card industry in 2010 and updated it in 2015. This code is a set of ten policy statements, which, for the first time ever, provided merchants with some power in their relationship with the credit card industry.

CFIB and its members 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 contracts and statements.

We work closely with the government and agencies like the Financial Consumer Agency of Canada (FCAC) to ensure the Code of Conduct achieves its main objective, which is to protect consumers and merchants.