Outside Quebec, merchants want to charge consumers credit card fees

About one in five Canadian merchants are considering charging customers who pay with a credit card a surcharge to offset processing fees, a new survey from the Canadian Federation of Independent Business (CFIB) reveals. But most are reluctant to do so for fear of losing customers.

The CFIB report comes ahead of new rules taking effect Thursday that will give small and medium-sized businesses the power to add a surcharge on certain credit card transactions. However, this possibility will not be offered to Quebec merchants, since the Consumer Protection Act prohibits it.

While 19% of CFIB survey respondents say they will charge the extra fee, 26% said they plan to do so only if their competitors or suppliers do. Around 40% of small traders say they are still unsure of their decision, and 15% have no intention of asking for the supplement.

Businesses that often sell to other businesses are more likely to charge extra for credit card use, the survey found, while businesses that serve consumers were less likely to say they would.

CFIB Senior Vice President of National Affairs Corinne Pohlmann said small merchants have long struggled with high credit card processing fees. The ability to charge additional fees should further help smaller merchants cope with the steep rise in their operating costs.

CFIB Vice-President for Quebec, François Vincent, however, regretted that the Quebec plan is different from that of other provinces.

“It is necessary to modernize the Consumer Protection Act in order to adapt it to today’s context,” he said in a press release, specifying that he intended to deal with this “priority file”. with the next Quebec Minister of Justice, after the formation of the new Council of Ministers.

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