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
B.C. tenants evicted for landlord's use after refusing large rent increase to take over neighbouring suite
Ashley Dickey and her mother rented part of the same Coquitlam duplex in three different decades under three different landlords.
Mountain guide dies after falling into a crevasse in Banff National Park
A man who fell into a crevasse while leading a backcountry ski group deep in the Canadian Rockies has died.
Expert warns of food consumption habits amid rising prices
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
MPP Sarah Jama asked to leave Ontario legislature for wearing keffiyeh
MPP Sarah Jama was asked to leave the Legislative Assembly of Ontario by House Speaker Ted Arnott on Thursday for wearing a keffiyeh, a garment which has been banned at Queen’s Park.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Ex-tabloid publisher testifies he scooped up possibly damaging tales to shield his old friend Trump
As Donald Trump was running for president in 2016, his old friend at the National Enquirer was scooping up potentially damaging stories about the candidate and paying out tens of thousands of dollars to keep them from the public eye.
Here's why provinces aren't following Saskatchewan's lead on the carbon tax home heating fight
After Prime Minister Justin Trudeau said the federal government would still send Canada Carbon Rebate cheques to Saskatchewan residents, despite Saskatchewan Premier Scott Moe's decision to stop collecting the carbon tax on natural gas or home heating, questions were raised about whether other provinces would follow suit. CTV News reached out across the country and here's what we found out.
Montreal actress calls Weinstein ruling 'discouraging' but not surprising
A Montreal actress, who has previously detailed incidents she had with disgraced Hollywood producer Harvey Weinstein, says a New York Court of Appeals decision overturning his 2020 rape conviction is 'discouraging' but not surprising.
Caleb Williams, Jayden Daniels and Drake Maye make it four NFL drafts with quarterbacks going 1-3
Caleb Williams is heading to the Windy City, aiming to become the franchise quarterback Chicago has sought for decades.