Canadian businesses can now add credit card surcharges as restrictions are lifted – National

Canadians may notice a jump in the number of registered businesses credit card surcharge as restrictions on the practice of fifth lifting.

Businesses are guaranteed the right to add a surcharge, which they must explicitly disclose, to credit card transactions as part of a class action lawsuit against Master Card, Passport and Canadian banks.

A survey of Canadian Federation of Independent Business found that nearly one in five businesses are considering adding a surcharge to offset the merchant fees they pay for credit card processing. The CFIB says these fees can make up 2.5% of a business’s total revenue.

However, the group said consumer-oriented businesses are less likely to pass on costs due to fears they will lose customers, so credit card surcharges will be more common among businesses selling to retailers. other businesses.

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Research by the Bank of Canada last year found that consumers already pay more for the privilege of using a credit card, as most merchants pass the cost of credit card processing into their retail price.

The article shows that consumers can pay anywhere from $17 to $52 a month for credit card processing costs, which comes in the form of price increases.

© 2022 Canadian Press


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