In a recent partnership with the Government of Canada credit card companies Visa & Mastercard have decided to lower their percentages of fees for small business owners.
The following changes are taking place in the fall of 2024
reduce domestic consumer credit interchange fees for in-store transactions to an annual weighted average interchange rate of 0.95 per cent;
reduce domestic consumer credit interchange fees for online transactions by 10 basis points, resulting in reductions of up to 7 per cent; and,
provide free access to online fraud and cyber security resources to help small businesses grow their online sales while preventing fraud and chargebacks.
To be eligible Visa has suggested small businesses with Visa sales that are below $300k annually, and Mastercard for $175k.
Non-profit organizations will also benefit (given the threshholds).
In their press release (see below for link for more details) they give 2 examples of small businesses and how it would impact:
- Company with $300k in credit sales paying currently $4,000 in fees (1.33%), would be reduced to just $2,850 in fees (assuming the .95%, the example puts the change at .97%)
- Company with $120k in credit sales pays $1,600 in fees (same 1.33%) would have that reduced to $1140 (assuming .95%, the example puts the change at .97%)