Government cuts credit card fees by 27% for small business owners

The Honourable Filomena Tassi, Minister responsible for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), has announced that new credit card fee reductions for small business owners will take effect this Saturday, October 19, 2024. For eligible small businesses, Visa and Mastercard have committed to:

• Reduce their interchange fees charged to domestic consumers to a weighted average annual interchange rate of 0.95%, for in-store transactions.
• Reduce by 10 basis points their credit card interchange fees charged to domestic consumers for online transactions, resulting in reductions of up to 7%.
• Provide them with free access to online fraud protection and cybersecurity resources to help them increase their online sales while preventing fraud and chargebacks.

More than 90% of businesses with credit card transactions will qualify for lower rates, with interchange fees reduced by up to 27%. These fee reductions will save eligible Canadian small businesses approximately $1 billion over five years.

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FULL PRESS RELEASE: https://www.canada.ca/fr/developpement-economique-sud-ontario/nouvelles/2024/10/le-gouvernement-reduit-les-frais-de-carte-de-credit-de-27--pour-les-proprietaires-de-petites-entreprises.html

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