Canadian businesses can charge credit card fees starting Oct. 6
Starting Thursday, businesses in Canada will be able to pass credit card fees on to their customers.
The change is the result of a multimillion-dollar class-action settlement involving Visa and Mastercard over what are known as interchange or swipe fees: the money credit card companies, banks and payment processors collect from merchants with every transaction.
Those fees can range from around one per cent to as much as three per cent for cards, with perks like cash back or loyalty points cutting into business profits.
According to the Canadian Federation of Independent Business, Visa and Mastercard previously restricted merchants' ability to include fee surcharges or refuse "premium" credit cards with higher costs. Some companies, like Telus, have already announced new credit card processing fees.
The new rule, which allows merchants to pass fees on to consumers, goes into effect on Oct. 6. Merchants are required to provide written notice to Visa and Mastercard. As part of the settlement with the companies, Canadian businesses were also able to claim up to $5,000 in credit card fee rebates.
Despite the change, retail expert Bruce Winder told CTV News Channel on Wednesday he does not believe restaurants or retailers will pass the fees on to consumers on a large scale.
"A lot of them are quite hesitant because they don't want to anger customers in this already inflationary environment," he said.
But the bigger issue, Winder said, is that Canadians pay some of the highest interchange fees in the developed world for credit cards.
Karl Littler, senior vice-president of public affairs for the Retail Council of Canada, said the issue is more of an "upstream" problem the government can address by lowering fees overall.
Speaking to CTV News Channel on Wednesday, he offered a more definitive take, saying he sees "next to no likelihood" that retailers would add on the surcharge.
"It is more a hypothetical possibility than a real one," he said.
With files from CTVNews.ca Writer Michael Lee
National Bank of Canada raised its dividend as it reported its fourth-quarter profit fell four per cent compared with a year ago. The increased payment came as National Bank said it earned $738 million or $2.08 per diluted share for the quarter ended Oct. 31, down from $769 million or $2.17 per diluted share in the same quarter last year. Revenue totalled $2.33 billion, up from $2.21 billion a year earlier.
Royal Bank of Canada is taking measures to prepare for a more uncertain year ahead, but results from the past quarter still show gains in key areas like loans and new client additions.
With the 2023 post-secondary education application deadlines approaching, many students across Canada are looking for alternatives to university and college, leaving parents anxious taking a ‘gap year’ could mean they never return to school.
Wouldn't it be nice to never have to work again? While this may sound like a dream to many, it is entirely possible. CTVNews.ca personal finance contributor Christopher Liew shares a handful of helpful tips on how to potentially achieve financial independence.
Recent homebuyers with variable-rate mortgages will find the adjustment to higher interest rates more painful, said Bank of Canada senior deputy governor Carolyn Rogers.
Buying your first car can be as exciting as it is daunting. Whether you’re buying a car off the lot from a dealership or purchasing a car in a private sale, contributor Christopher Liew shares in an exclusive column for CTVNews.ca a few basic tips that you should always keep in mind.
In March 2022 alone, food banks across Canada had 1.5 million visits, a 15 per cent increase from the year prior and the highest recorded usage on record.
Many Canadians have one or two old credit cards that they no longer use. Before you jump to close your old, unused credit card, CTVNews.ca contributor Christopher Liew outlines some of the pros and cons of closing a credit card account, so you can make the most informed decision.