With credit card usage rising due to the pandemic, growing online shopping and tight consumer budgets, small merchants are urging the federal government and the payments industry to move quickly to deliver on the Fall Economic Statement’s promise to lower processing fees for small business.
Nearly three-quarters (74%) of small businesses said that they want to see credit card processing fees drop to no more than 1% of the total dollar sale, according to a new survey by the Canadian Federation of Independent Business (CFIB). This would require interchange rates for small firms to be set at 0.7% or less – half of the current average of 1.4%.
CFIB research shows most (81%) small businesses take a hit to their bottom line to cover the costs of accepting credit cards. Yet, many small merchants feel they have no choice but to continue accepting credit cards if they want to attract and retain customers and grow their business.
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