Majority of B.C. businesses not expected to pass on credit card surcharges to customers
One of the most popular ways Canadians pay for just about everything may be getting more expensive.
Starting Thursday, businesses will be able to pass on credit card transaction fees to customers.
The fees can range from 1.5 to 2.5 per cent for cards with perks like cash back or loyalty points. Local businesses are concerned that those additional costs could drive customers away.
“We're hearing from some of our members, ‘How should I stay in business? How can I stay in business?’,” said Anita Huberman, President and CEO of the Surrey Board of Trade.
Huberman says many businesses are already operating on razor-thin margins and can’t afford to lose any customers.
“It's so difficult to be an entrepreneur these days, in the face of so much bottom line erosion and economic challenges. This credit card piece is yet another nail in the coffin for some of our businesses in our community,” said Huberman.
Credit card companies are raking in between $5 billion and $7 billion a year from processing fees. Telus has already announced it will start charging a fee for paying with credit.
However, some small retail shops are hesitant to do the same, for fear of losing business.
“They don't want to burden their consumers, but they don't feel that they should wear that burden of paying that additional fee to these credit card companies,” said Huberman.
The new rule comes after Visa and Mastercard settled a multi-million-dollar class action lawsuit. But it appears most B.C. businesses will not be passing their fees on.
“The vast majority of our own members, around 80 per cent, said that they're really, really not interested in implementing this in their business. And 20 per cent – only one in five – are actually looking at this as an option,” said Annie Dormuth, provincial director of the Canadian Federation of Independent Business for British Columbia and Alberta.
She would like to see Ottawa take action to help businesses.
“Something that the federal government can do is honor its 2021 election promise, and that is lowering credit card fees,” said Dormuth.
Businesses are required to notify their credit card network at least 30 days before starting to surcharge.
They must also post notice they are surcharging, and the amounts of any surcharges at point-of-sale, as well as clearly itemize any surcharges on receipts.
“Business owners are also consumers themselves. They're British Columbians themselves and I think they're all recognizing, of course, the challenging times that are being placed on consumers right now,” said Dormuth.
With files from CTV National’s Kevin Gallagher
CTVNews.ca Top Stories
What is whooping cough and should Canadians be concerned as Europe declares outbreak?
There is currently a whooping cough epidemic in Europe, with 10 times as many cases compared to the previous two years. While an outbreak has not been declared nationwide in Canada, whooping cough is regularly detected in the country.
Ontario Provincial Police arrest 64 suspects in child sexual exploitation investigation
Ontario Provincial Police say 64 suspects are facing a combined 348 charges in connection with a series of child sexual exploitation investigations that spanned the province.
'Summer of discontent': Federal unions vow to fight new 3-day a week office mandate
Federal unions are launching legal challenges and encouraging public sector workers to file "tens of thousands" of grievances over the new mandate requiring federal workers to return to the office at least three days a week in the fall.
Watch fighter jet pilots pummel fake enemy ship off coast of Philippines
The United States and Philippines held annual joint-training drills just off the Southeast Asian nation’s western coast on Wednesday. Military forces sunk a 'mock' enemy warship – the BRP Lake Caliraya, which was a decommissioned tanker made in China.
U.S. presidential candidate RFK Jr. had a brain worm, has recovered, campaign says
Independent U.S. presidential candidate Robert F. Kennedy Jr. had a parasite in his head more than a decade ago, but has fully recovered, his campaign said, after the New York Times reported about the ailment.
'Ozempic babies': Reports of surprise pregnancies raise new questions about weight loss drugs
Numerous women have shared stories of 'Ozempic babies' on social media. But the joy some experience in discovering pregnancies may come with anxiety about the unknowns.
OPINION What King Charles' schedule being too 'full' to accommodate son suggests
Prince Harry, the Duke of Sussex, has made headlines with his recent arrival in the U.K., this time to celebrate all things Invictus. But upon the prince landing in the U.K., we have already had confirmation that King Charles III won't have time to see his youngest son during his brief visit.
TSB concludes investigation into cause of London, Ont. freight train fire
More than two weeks after a freight train with several railcars ablaze rolled through the heart of the Forest City, the Transportation Safety Board (TSB) has concluded its investigation.
'I killed four people': Trial hears video evidence of Jeremy Skibicki at Winnipeg trial
“I killed four people,” alleged serial killer Jeremy Skibicki told two homicide detectives during a recorded interview played as evidence in his trial Wednesday.