Shop owners across the country have complained for years that high credit card fees are hurting them. Research by the Canadian Federation of Independent Business (CFIB) found that 81 per cent of small businesses cut into their profits to cover the costs of accepting credit cards.
Maureen Horne-Paul, who co-owns an ice cream and a fish and chips shop in Annapolis Royal, said these changes will have minimal to no impact on her bottom line.
“It doesn’t offset in any way shape or fashion the increase in operating costs that I have,” she said.
“My costs have gone up almost 20 per cent,” Horne-Paul said. “Some of my costs have gone up 300 per cent because I operate a restaurant.”
She said she has noticed significantly fewer people use debit cards compared to credit cards which have higher transaction fees for businesses.
“Even for small purchases [like] fries and a drink, people are using credit cards instead of using their debit card,” Horne-Paul said.
Following a legal settlement last year, Visa and Mastercard changed rules to allow Canadian businesses to pass on the cost of interchange fees to customers.
However, Beattie said his businesses have not implemented any surcharges because credit cards form a big part of the business.
Lobbying for higher income limits
Ruiz Salvador, Beattie and Horne-Paul each expressed concern that businesses are shouldering the cost of the convenience and benefits that credit cards can provide.
Duncan Robertson is the Nova Scotia policy analyst for the CFIB lobby group. He said the fee reductions will be a “good first step.”
“At CFIB we’re pushing … to increase [the $300,000 and $175,000 thresholds] to make sure it includes as many small businesses as possible,” Robertson said.
Robertson said the fee reductions will be automatic for merchants and that the CFIB is pushing for the fee reduction to be in place earlier than the fall of 2024.
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