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by lyrrad
1134 days ago
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Looks like this is an agreement between Visa/Mastercard and banks with the Canadian Federal government to lower credit card transaction fees for small businesses. The government's press release is here: https://www.canada.ca/en/department-finance/news/2023/05/gov... Applies to annual charges below $300K/$175K CAD for Visa/Mastercard. They still will charge higher fees to large businesses. "As part of these new agreements with Visa and Mastercard, Canada’s large banks have agreed to protect Canadians’ reward points." Notably, this seems to be a partial extension to a 2018 agreement with Visa, Mastercard and Amex to lower fees to 1.40% for five years for "small and medium sized businesses": https://www.canada.ca/en/department-finance/news/2018/08/new... The prior agreement was for medium businesses with credit sales under $5 million CAD and small businesses with sales under $1 million CAD. The 2018 agreement claimed that it would save businesses "$250 million [CAD] per year", while the 2023 agreement claims "$1 billion [CAD] over five years". Since less companies are covered in the 2023 agreement, I assume rates will be going up for some businesses that no longer qualify under the voluntary agreement. |
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