Visa lowers card fees for more small Canadian businesses

Visa has expanded its program that cuts card fees for small businesses in Canada, so more small sellers can now qualify for a lower rate. Visa says it aims for an average fee of 95 basis points, or 0.95%, for eligible sellers. Mastercard has not widened its own program.

What changed

In 2024, Visa and Mastercard agreed with a Canadian government agency to lower interchange fees for small businesses. Interchange is a fee built into card payments that sellers end up paying. Visa's original limit was sales below CA$300,000. Mastercard's is sales below CA$175,000. Visa widened its program this month. The material does not say what the new limit is.

The lower Visa rate covers domestic consumer credit card sales where the customer is present for the purchase. The Canadian Federation of Independent Business, a group for small businesses, welcomed the move and asked Mastercard and other card brands to follow.

What to do

• Check your yearly sales against the program limits.
• Ask your payment provider whether you qualify for the lower Visa rate.
• Ask whether any savings will be passed on to you.

What is not known yet

The group wants savings to reach sellers, but the material does not say how that will happen. Mastercard did not immediately comment. Separately, Mastercard began charging a new fee to card processors last week. Visa will do the same starting in April 2027.