In May 2023, the federal government announced an agreement with Visa and Mastercard for lower credit card merchant fees for small businesses. Under the new deal, small businesses with up to $300,000 in annual Visa sales and $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 e-commerce fees. This represents interchange fee reductions of up to 37% for the majority of small businesses.  

Credit unions are encouraged to ensure their small business members are aware of these potential savings. 

Savings may include:   

• Visa: Depending on the industry and type of card, rates should drop between 25-35% (savings of $300-400 per $100,000 in transactions)  

• Mastercard: Depending on the type of card, rates should drop around 20% (savings of $200 per $100,000 in transactions)  

Please note that only select card processors will pass on the savings.   

Click here for more information provided by the Canadian Federation of Independent Business.