Canada Secures Deals with Visa and Mastercard to Slash Credit Card Transaction Fees for Small Businesses 

In a December 5 news release, the Canadian government announced the finalization of agreements with Visa and Mastercard to reduce credit card transaction fees for small businesses and protect consumers’ reward points. 

Over 90% of credit card-accepting businesses in Canada are expected to qualify for lower rates, leading to a reduction of up to 27% in interchange fees, saving eligible small businesses approximately $1 billion over five years.

The agreements entail a reduction in domestic consumer credit interchange fees for in-store transactions to an annual weighted average rate of 0.95%, a 10-basis point reduction in online transactions, and free access to online fraud and cybersecurity resources for small businesses. Visa and Mastercard will implement these changes for small businesses with annual sales volumes below $300,000 and $175,000, respectively. 

The new rates are set to take effect in the fall of 2024. Additionally, Canada’s large banks have committed to safeguarding Canadians’ reward points as part of these agreements.

Read the full news release here

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