Big credit card firms agree to cut merchant fees
http://www.cbc.ca/news/business/credit- ... -1.4779284The federal government is announcing today that major credit card companies have agreed to lower the fees they charge businesses.
A government source told The Canadian Press that Ottawa has reached voluntary, five-year deals with Visa, Mastercard and American Express that are expected to help small and medium-sized companies save about $250 million a year.
Starting in 2020, Visa and Mastercard will reduce the fees they collect from businesses to an average annual effective rate of 1.4 per cent — down from 1.5 per cent — and narrow the gap between the highest and lowest rates they charge retailers.
American Express has agreed to provide more fairness and transparency as part of a separate voluntary commitment that recognizes its unique business model.
The changes, which are also expected to help consumers, are being unveiled at an Ottawa grocery store later today by Finance Minister Bill Morneau and Mary Ng, the new minister for small business and export promotion.
The source, speaking on condition of anonymity to discuss matters not yet public, said the reductions could help smaller businesses save thousands of dollars over the five-year period — and the government is hoping the extra funds will encourage owners to invest, expand and create jobs.
From 1.5% to 1.4% a marginal change but always something. How will this impact CC perks? Full details to be unveiled later today.