Lower credit card fees for small businesses coming this fall

CFIB’s letter on the credit changes

CFIB sent a letter to acquirers, asking if they're ready to pass on credit card fee savings to small businesses as of the October deadline.

The letter asks about implementation details, timeline concerns, rate structures and increases, verification processes as well as issues around merchants with multiple locations.

Out of 11 payment processors, five acknowledged the letter, with four of them working on a response. CFIB will publish responses from acquirers on its website and share information with members upon request.

"In the two previous rounds of interchange reductions, we've heard from some members that fee reductions weren't always properly passed on to merchants,” said Pohlmann.

“By sending this letter, we want to ensure that all major players are willing and ready to implement the cost savings, so smaller merchants can benefit from them as soon as reductions come into force.”

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The upcoming reductions

When the changes were first announced in May 2023, CFIB naturally welcomed them. At the time, their analysis showed that nearly three-quarters (73%) of its members will benefit from these rate reductions of up to 27%.

CFIB's savings partnership with Chase Merchant Services helps to guarantee that all savings from the reductions will be passed on to Chase merchants as of October 19.

CFIB is Canada's largest association of small and medium-sized businesses with 97,000 members across every industry and region.