by Morinville News Staff
A drop from 1.5 per cent to 1.4 per cent set for 2020 had the Canadian Federation of Independent Business (CFIB) celebrating new agreements between the federal government and major payments brands announced last week.
Visa and Mastercard have agreed to reduce fees they charge retailers to an average annual effective rate of 1.4 per cent in 2020, a drop of 0.1 per cent.
“These new measures build on the positive momentum in improving the power balance between major card brands and smaller merchants that began with the adoption of the Code of Conduct for the Credit and Debit Card Industry in Canada,” said CFIB president Dan Kelly in a media release. “For years, CFIB has encouraged the payments industry to close the gap between the rates small businesses pay and those available to large firms. The new agreements with Visa, Mastercard and American Express provide greater opportunities for small firms to benefit from lower credit card processing fees.”