Finance Minister Bill Morneau announced that the Government has helped secure new, separate and voluntary commitments from three payment card networks that will lead to lower costs for small and medium-sized businesses. With lower interchange fees, businesses will be able to save money that they can use to invest, grow, and create more jobs—an important part of strengthening and growing the middle class.
“This is a good step, but the Surrey Board of Trade notes the word voluntary in these commitments by credit card companies. The Surrey Board of Trade will observe the results and impacts to businesses as a result of this announcement,” said Anita Huberman, CEO, Surrey Board of Trade.
The Government of Canada released a statement on lower credit card transaction costs for small and medium-sized businesses. Businesses will now pay lower transaction fees when consumers use American Express, Mastercard, or Visa credit cards. Visa and Mastercard have committed to reducing transaction fees to 1.40 per cent for five years, narrow the range of transaction fees charged to businesses, and require annual verification by an independent third party that these fees are indeed being implemented. American Express has committed to support greater fairness and transparency in the Canadian credit card market, since American Express uses fees other than transaction fees.
Businesses are to save an estimated $250 million per year based on credit sales of $250 billion per year. For medium sized businesses with credit sales of $5 million per year, they could save up to $25,000 over five years. For small businesses with credit sales of $1 million per year, they could save up to $7,500 over five years.
“The Surrey Board of Trade is thrilled that small and medium sized businesses are finally being given a break. Surrey’s economy is mainly made up of small to medium-sized businesses, and this change will surely bolster Surrey’s already growing economy.”
“The Surrey Board of Trade will always instigate positive bottom-line change for Surrey businesses. This reduced interchange fee will only help both consumers and businesses. With over 2,600 members of the Surrey Board of Trade – and most of them small to medium-sized businesses – this change is great news.”
Surrey will be the largest city in B.C very soon. Business needs every chance of remaining competitive and reducing bottom line costs.
For more information on the recent change visit this LINK