Out of 11 payment processors, five acknowledged the letter, with four of them working on a response. CFIB will publish responses from acquirers on its website and share information with members upon request.

“In the two previous rounds of interchange reductions, we’ve heard from some members that fee reductions weren’t always properly passed on to merchants. By sending this letter, we want to ensure that all major players are willing and ready to implement the cost savings, so smaller merchants can benefit from them as soon as reductions come into force,” said Corinne Pohlmann, Executive Vice-President of Advocacy at CFIB.

As of October 19, 2024, small businesses with up to $300,000 in annual Visa sales and up to $175,000 in annual Mastercard sales will qualify for a 0.95% average interchange rate for in-store sales and a 0.1% cut in ecommerce fees. This will provide fee reductions of up to 27% for the majority of small businesses.

“These are important changes that we’ve long been fighting for, and we want our members to be fully informed. It’s imperative that acquirers be transparent and prepared to implement these changes ahead of time, given that many of our members are their clients,” Pohlmann added.

In spring 2023, CFIB welcomed the new agreement between the federal government, Visa and Mastercard to lower credit card processing fees for smaller merchants. CFIB continues to put pressure on the government to expand the agreement to additional credit card providers and to review size thresholds to benefit more small- and medium-sized businesses.

CFIB’s savings partnership with Chase Merchant Services helps to guarantee that all savings from the reductions will be passed on to Chase merchants as of October 19. For more on CFIB’s work to reduce credit card fees for small businesses, visit cfib.ca/credit-cards.

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Nearly three-quarters (74%) of small businesses said that they want to see credit card processing fees drop to no more than 1% of the total dollar sale, according to a new survey by the Canadian Federation of Independent Business (CFIB). This would require interchange rates for small firms to be set at 0.7% or less – half of the current average of 1.4%.

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The credit card categories on creditcardGenius have expanded to better represent Canadian business owners. The 3 new categories are:

• Best Cash Back Business Credit Card,
• Best Travel Business Credit Card, and
• Best Business Credit Cards With No Annual Fee.

moneyGenius ranks over 36 categories, working relentlessly to find the most trusted and rewarding financial products that could save (and earn) Canadians the greatest amount of money possible.

Painstakingly analyzed using a refined math-based algorithm or feature-based rating system, the trusted rankings are bolstered by an ever-growing cash back program called GeniusCash. The initiative was launched with an unprecedented Tesla giveaway, officially handed off to Tony Yip in November.

Continuing the spirit of giving back, moneyGenius has recently launched the Mountain Of Prizes giveaway, with multiple tiers of prizes worth over $20,000.

“Personal finance education is only getting more important as Canadians struggle in the face of a difficult economy,” said Stephen Weyman, Co-Founder of moneyGenius and creditcardGenius. “Our goal is to provide readers with unbiased, trustworthy information and reward them for taking control of their finances. We hope to give back even more in 2023.”

Sneak peek of the best credit card and personal finance winners:

For full details, see Best Credit Cards 2023 and Money Awards 2023.

The post Best Canadian Credit Cards And Personal Finance Products For 2023 Announced appeared first on Muskoka411.

As a result of a recent class action settlement, Visa and Mastercard will give small businesses the power to add a surcharge on some credit card transactions starting October 6, 2022, to offset their merchant fees. Due to consumer protection laws in Quebec, this option will not be available in that province.

“Most smaller merchants are still on the fence or don’t plan to surcharge as they don’t want to risk losing customers. However, it’s important for them to know they will have this option,” said Corinne Pohlmann, Senior Vice-President of National Affairs at CFIB. “Small businesses have long been dealing with expensive credit card processing fees and trying to find ways to absorb the cost of accepting premium cards without the ability to surcharge or refuse those cards. Surcharging gives them the ability to offset some of their costs and be transparent with their customers about the fees they pay.”

A recent survey of CFIB members found that 19% of merchants intend to use the new power to surcharge, while a further 26% said they will do it if their competitors or suppliers do. More than one-third (40%) of small firms said they are not sure yet if they will surcharge, while 15% said they don’t intend to do it.

Businesses that often sell to other businesses (B2B), like construction, manufacturing and finance/insurance, were most likely to report they will surcharge for credit card usage, while businesses that serve consumers were less likely to say they will do it. Among consumer-facing sectors, a total of 19% of hospitality (e.g. restaurants), 17% of personal services businesses (e.g. salons) and 12% of retailers intend to surcharge.

“These data reveal the frustration so many business owners feel about the high cost of credit card processing, which can eat about 1.5 to 2.5% of every sale,” said CFIB president Dan Kelly. Currently, 35% encourage customers to use other forms of payment and 28% said they increase their prices to absorb credit card fees.

CFIB continues to call on the federal government to deliver on its 2021 election promise to further reduce ongoing credit card processing fees for small business. Small businesses in Quebec should also have the right to surcharge to offset their credit card fees.

“The power to surcharge will allow merchants to address their rising operating costs, push back against future credit card fee hikes and keep their prices competitive,” Kelly said. “With mounting pressures small businesses are facing due to inflation and government-imposed costs, surcharging is another way to reduce their cost burden.”

Merchants can now apply to surcharge by registering their plans with their credit card processor and Mastercard (Visa requires registration with the processor only). Once they have registered their intent to surcharge, merchants must then wait 30 days before they can start to apply a surcharge on Visa and Mastercard transactions.

“All payment processors should be ready to support merchants interested in surcharging as soon as possible. If the processors aren’t ready, CFIB is urging them to find a solution for merchants who wish to start surcharging,” Pohlmann added.

For more information and some tools related to surcharging, business owners can visit cfib.ca/surcharging.

The post Credit Card Surcharges Coming Soon, Nearly 20 Per Cent Of Small Businesses Intend To Use It appeared first on Muskoka411.

“The cost of doing business is at an all-time high, and small businesses are finding it more and more difficult to deal with accumulating credit card fees as consumers shift away from cash payments due to the growth of e-commerce and even for small, in-store purchases,” said Corinne Pohlmann, Senior Vice-President of National Affairs at CFIB.

Change in small business payment options throughout the pandemic

• 92% of businesses now accept debit/credit cards as payment
• 55% started accepting or increased their acceptance of contactless debit or credit payment methods
• 33% started accepting or increased their acceptance of online/e-commerce payment methods
• 53% decreased or stopped accepting cash as payment

“While credit card processing fees for some in-store transactions have come down in recent years, this has been more than offset by the massive growth in higher costs for e-commerce transactions and the shift away from cash during the pandemic,” added Dan Kelly, CFIB president.

Small businesses are also less likely to have dedicated experts to manage their financial matters. More than half (54%) of businesses have difficulty in understanding their contract with their payment processor and 41% are unsure of their pricing model. Processors are not obliged to use consistent verbiage or display information in the same way, making understanding and comparing statements or contracts more complex than necessary for merchants.

CFIB is urging both the federal government and the payments industry to help small business owners by:

• Lowering the average overall cost of credit card fees and ensuring that small merchants benefit from similar pricing as larger ones as promised by government in the 2021 federal budget.
• Simplifying contracts and monthly statements by having different credit card processors use consistent wording and format.
• Creating an independent dispute resolution process for merchants who have issues with their payments.
• Eliminating credit card processing fees on sales tax (HST/GST/PST).

“Consumer preferences are leading more businesses to adopt digital payment methods, but many of them come with significant processing fees. Some of these costs will inevitably be passed down to consumers, but businesses also worry about pricing themselves out of their markets. As we start to come out of the pandemic, the payment services industry and government have an opportunity to do the right thing and address the unique needs of small businesses by finding ways to level the playing field and lower processing fees,” concluded Pohlmann.

SOURCE Canadian Federation of Independent Business

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Pre-pandemic, travel cards were preferred by creditcardGenius Canadian readers because of their higher value rewards. This trend shifted to cash back cards during the beginning of the pandemic in 2020. Then in the summer of 2021, travel rewards led the pack once more ‒ until Omicron uncertainties loomed in December.

“The last 2 years have been uncertain at the best of times,” said Stephen Weyman, Co-Founder of creditcardGenius. “I hope our data-driven and mathematical approach can help Canadians find clarity and confidence in their finances, and benefit from the extra cash back boost.”

This year, creditcardGenius added 2 new categories. The Best Newcomers category spotlights cards with low credit score requirements, to help new Canadians build their score and earn rewards. As well, the Best Challenger category compares cards from up-and-coming fintech companies, which often offer unique features, including planting trees and earning bonus rewards at Amazon.

Select preview of the best Canadian credit card winners:

The Best Credit Cards in Canada 2022 page lists all 28 categories.

SOURCE Weymedia Inc

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