CFIB statement on the finalized deal to lower credit card fees for small businesses
Toronto, December 5, 2023 - The Canadian Federation of Independent Business (CFIB) welcomes the news that the federal government has finalized agreements with Visa and Mastercard to lower credit card transaction fees for small businesses. The deal will provide fee reductions of up to 27% for the majority of small businesses.
CFIB has been fighting for lower credit card fees for small businesses for over a decade, urging the government and the credit card industry to level the playing field and provide more fairness for small businesses. Earlier this year, CFIB joined Deputy Prime Minister Chrystia Freeland at the credit card deal announcement in Brampton.
While this agreement brings some welcome relief to small businesses, the new rates will only come into effect in the fall of 2024. Small businesses need financial relief now as they’re dealing with low sales, high borrowing costs, pandemic debt and labour shortages. And with the Canada Emergency Business Account (CEBA) repayment deadline just over a month away (January 18, 2024), CFIB worries many small businesses may not last long enough to see the benefit of today’s announcement. Small businesses need more time to repay their loans, and we’re urging the government to further extend the forgiveness deadline to the end of Dec. 31, 2024.
CFIB will also 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.
For details on the agreement and CFIB's work to reduce credit card fees for small businesses, visit cfib.ca/credit-cards.
- Dan Kelly, President and CEO, CFIB
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Dariya Baiguzhiyeva, 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.