About 400 local merchants will see some relief from high credit cards fees thanks to a lobbying effort from the Canadian Federation of Independent Business.
CFIB District Manager, Paul McLean says this is good news for local merchants .”It helps them by saving money on there business bottom line we are there to help them survive by lobbying for them for a stronger voice in laws and regulations”
The CFIB represents about 100,000 small businesses across the country and announced a deal with MasterCard that will reduce transaction fees to levels that have only been available to a small number of the country’s largest merchants or those who obtained sale of $3billion or more in MasterCard sales annually.
Starting on April 3 of this year, most CFIB member businesses fees will drop by 12.5 percent to just 1.26 percent.
The move comes after rising pressure from retailers such as Wal-Mart who stopped accepting Visa cards in two markets, namely Thunder Bay and Manitoba last summer citing the fees were unacceptably high” They have since reached agreements with Visa and MasterCard.
Dan Kelly, president of the CFIB told the Globe&Mail “merchants have felt rather powerless in terms of influencing the rates that they pay. But in the last few years, with a lot of leadership from the credit-card industry, from the payments industry and some help from government, things have changed an awful lot.”
CFIB’s efforts may encourage other retail associations and small business owners to seek their own deals or join the CFIB to take advantage of the lower fees. “This is like winning a lottery for small businesses to get a major player like MasterCard on and give this special rate, this has never been done before” McLean told Saultonline.com
McLean urges small business owners who have not joined the association to do so, for more information you can contact Paul McLean at 1-705-206-1928 or [email protected]