(OTTAWA) Small business owners welcomed a move in Tuesday’s federal budget to lower credit card transaction fees, but some industry officials say the move won’t really help consumers save money. ‘to save money.
Ottawa said it has reached agreements with Visa and Mastercard to reduce these fees by up to 27% from their current average rates for more than 90% of businesses accepting credit cards.
The government calculates that this will save companies 1 billion over five years.
Canadian Federation of Independent Business (CFIB) President Dan Kelly called it the “most important victory” of the federal budget, but added that details were still missing on which small businesses will qualify, and when they can take advantage of it.
Meanwhile, the Retail Council of Canada played down the move, saying households pay an average of $600 a year in credit card transaction fees and the announcement may only reduce that amount by $12 a year. year.
The government says it expects lower transaction fees for small businesses will not result in other businesses having to pay higher fees.