Canadian businesses can start charging credit card fees on October 6

One-fifth of Canadian businesses are considering adding surcharges to credit card transactions

Canadian businesses will have the option to apply surcharges to credit card transactions, but according to the Canadian Federation of Independent Businesses (CFIB), merchants considering imposing surcharges on their customers Only about one-fifth. Investigation.

Starting October 6, 2022, businesses will be able to charge an additional fee at the point of sale if a customer wants to pay by credit card. The new rule follows the settlement of a class action lawsuit that required Visa and Mastercard to allow merchants to decide whether they want to pass on the cost of accepting credit cards to their customers.

Prior to the lawsuit, the bank said it did not allow businesses to charge credit card fees, which would discourage people from using credit cards. Due to consumer protection laws, the surcharge option is not available in Quebec.

In a CFIB survey, 26% of companies said they would add a surcharge if a competitor added a surcharge, 40% said they weren’t sure, and 15% said they wouldn’t add a surcharge.

“Most smaller merchants aren’t ready or plan to charge extra because they don’t want to risk losing customers. It is important.” Said Corinne Pohlmann, Senior Vice President of State Affairs, CFIB, at the Oct. 5 release.

The study found that businesses that serve customers directly are less likely to add additional charges, while businesses that primarily interact with other businesses are more likely to add additional charges.

The survey also found that 35% of businesses are now encouraging customers to use other payment methods, and 28% are raising prices to cover credit card fees.

“Small businesses have long dealt with high credit card processing fees. says Mr.

Additional charge limit

According to CFIB President Dan Kelly, data from the CFIB survey reveals “the frustration felt by a significant number of business owners over the high cost of credit card processing,” which accounts for “about 1.5% of all sales.” ~ 2.5%,” he says.

additional fee The cap is 2.4% or the amount it costs the business to accept the credit card, whichever is less.

“The surcharge authority allows merchants to address rising operating costs, resist future credit card fee increases, and remain price competitive,” said Kelly.

“With the increasing pressures facing small businesses due to inflation and government-imposed costs, surcharges are another way to reduce the cost burden,” he added.

business Users who had to pay credit card fees in Canada between March 23, 2001 and September 2, 2021 are eligible for a reimbursement of up to $250 annually for potential fee losses There may be The final deadline for applications was December 30th, and September 30th was the deadline for undocumented expedited claims.

the terrace is already announced Charge a 1.5% fee for credit card transactions and suggest customers use other payment methods.

The CFIB says fair disclosure of fees is required and businesses should produce posters or other messages indicating that they are adding additional fees. They suggest telling customers the reason for the charge and explaining how to avoid it. they say it should.

David Wagner


David Wagner is a reporter for the Epoch Times based in Winnipeg.