Canadian businesses can soon charge credit card fees

Swipe fees from credit card usage originally charged to businesses can now be passed onto their customers, starting October 6, because of the class-action lawsuit settlement involving Visa and Mastercard.  

These swipe or interchange fees, set by Visa and Mastercard, were typically charged to retailers to cover processing costs as well as other measures like security, fraud prevention, and funding services associated with credit cards. However, starting tomorrow, businesses in Canada can now charge it to their customers at the point of sale should the customer wish to pay by credit card. 

Merchants wishing to have this come into effect will need to provide written notice to Visa and Mastercard. Details on how to start surcharging can be found on the Canadian Federation of Independent Business (CFIB) here. This, however, will not be available to Quebec-based merchants due to Consumer protection laws in Quebec. 

Furthermore, Canadian businesses can also claim rebates of up to $5,000 in credit card processing fees dating back two decades. Small merchants' rebates can range from $30 - $600 per year to $250 - $5,000 per year for more prominent merchants. The Claim Deadline for Documented claims is December 30, 2022. More information on the claims can be found here.