Spending_Credit

Have small-business-owner clients who complain about credit card transaction fees?

Just in time for the holidays: Visa and MasterCard have announced the first-ever reduction in the interchange fees that small business owners pay to accept credit cards, says the Canadian Federation of Independent Business.

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The new rates are for electronic, in-person transactions for the majority of small and medium-sized merchants. Both Visa and MasterCard have announced general rate reductions, with MasterCard also announcing a lower rate category for independent businesses in 25 sectors, including:

  • Taxis
  • Hardware stores
  • Lawn/garden supplies
  • Variety stores
  • Bakeries
  • Misc. food stores
  • Alterations/tailors
  • Eating places
  • Restaurants

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  • Drug stores
  • Book stores
  • News dealers
  • Pet shops
  • Drycleaners
  • Barber/beauty shops
  • Shoe repair/shine
  • Car washes

This announcement should mark an end to the regular fee hikes and ever-higher levels of premium cards which have become the norm in recent years. Consumers should also breathe a sigh of relief, as these fees are inevitably built into the price of everything they buy, to the tune of $5-7 billion a year.

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Originally published on Advisor.ca

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