Canadian businesses can now add credit card surcharges as restrictions lift – National | Pro IQRA News

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Canadians may see a jump in the number of businesses applying credit card usage surcharges as restrictions on the practice increase Thursday.

Businesses have won the right to add a surcharge, which they must clearly disclose, to credit card transactions as part of a class-action lawsuit against MasterCard, Visa and Canadian banks.

A survey by the Canadian Federation of Independent Business found that nearly one in five businesses are considering adding a surcharge to offset the merchant fees they pay for credit card processing. The CFIB says these fees can eat up to 2.5 percent of a business’s total sales.

But the group says consumer-facing businesses are less likely to pass on costs for fear of losing customers, so credit card surcharges will be more common among businesses that sell to other businesses.

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Research by the Bank of Canada last year found that consumers are already paying extra for the privilege of credit card use, as most merchants pass the cost of credit card processing into their retail prices.

The paper found that consumers are likely to pay between $17 and $52 per month in credit card processing fees, which are passed on in the form of increased prices.

© 2022 The Canadian Press

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