New rule allowing businesses to charge credit card fees won't apply in Quebec
New regulations allowing businesses in Canada to pass credit card fees onto customers will not apply in Quebec.
The measure is prohibited by the province's Consumer Protection Act, according to the Canadian Federation of Independent Businesses (CFIB), but elsewhere in Canada, the rule officially takes effect on Thursday.
However, since businesses will need time to adapt their payment systems, consumers may not be affected until early November.
The rule is the product of a multimillion-dollar class-action settlement involving Visa and Mastercard over so-called "swipe fees" that cut into business profits.
The fees range from one to three per cent and are highest for cards with loyalty perks such as cashback rewards and points-earning systems.
"In the end, it’s the small and medium-sized business owners that pay for the points of consumers," said Francois Vincent, the CFIB’s vice-president for Quebec.
Vincent said it’s a financial burden that is increasingly difficult for businesses to shoulder, especially small retailers.
"In a medium-sized grocery store you can have 1,000, 2,000 transactions a year. It can cost $200,000 in fees to a giant company and less than $10,000 for debit transactions," he said.
Should they sign up, merchants would be permitted to charge an additional fee to consumers at the point of sale to make up for the loss.
Vincent said the charge has been capped at 2.4 per cent of the purchase price. He said shoppers could always opt to use a debit card or cash to complete their purchase to avoid the fee, though they'll miss out on any perks the card offers.
QUEBEC BUSINESSES SHUT OUT
According to a CFIB survey, only 19 per cent of businesses in the nine other provinces would opt to charge customers a credit card fee.
Still, Vincent said even if the fee isn’t very popular at the moment, all provinces should be governed by the same regulations.
He points out that business owners in Ottawa will be permitted to charge a fee if they choose, while merchants across the river in Gatineau, Que. are prohibited from doing the same.
"We are living in Canada and why could some businesses in the rest of the country have the possibility that retailers or small businesses in Quebec would not have?" he said.
To that end, the CFIB intends to meet with Quebec’s new justice minister and ask for an update to the province's Consumer Protection Act to level the playing field.
"Businesses don’t want to put that surcharge on the customers," but the reality of small business owners — now grappling with inflation, high payroll taxes, and rents — also needs to be taken into account, he said.
CTVNews.ca Top Stories
NEW Toxic forever chemicals in drinking water: Is Canada doing enough?
As the United States sets its first national limits on toxic forever chemicals in drinking water, researchers say Canada is lagging when it comes to regulations.
Why drivers in Eastern Canada could see big gas price spikes, and other Canadians won't
Drivers in Eastern Canada face a big increase in gas prices because of various factors, especially the higher cost of the summer blend, industry analysts say.
How to avoid the trap of becoming 'house poor'
The journey to home ownership can be exciting, but personal finance columnist Christopher Liew warns about the trappings of becoming 'house poor' -- where an overwhelming portion of your income is devoured by housing costs. Liew offers some practical strategies to maintain better financial health while owning a home.
'A living nightmare': Winnipeg woman sentenced following campaign of harassment against man after online date
A Winnipeg woman was sentenced to house arrest after a single date with a man she met online culminated in her harassing him for years, and spurred false allegations which resulted in the innocent man being arrested three times.
Arrest made, manslaughter charge pending in 2022 death of Calgary toddler
Calgary police have arrested a man and a charge is pending in connection with the death of a toddler in 2022.
When new leaders took over in ancient Maya, they didn't just bury the former royals. They burned their bodies in public
New archeological investigations in Guatemala reveal that the ancient Maya people had a ritual of burning royal human remains as a public display of political regime change.
Where did the gold go? Crime expert weighs in on unfolding Pearson airport heist investigation
Almost 7,000 bars of pure gold were stolen from Pearson International Airport exactly one year ago during an elaborate heist, but so far only a tiny fraction of that stolen loot has been found.
Some customers steaming after McDonald's ends free hot drink sticker program
It took years for Vinnie Deluca to collect more than 400 cards worth of free McDonald's McCafe coffee, a collection that now has "zero value" after the company discontinued the program.
Prince William returns to public duties after wife Kate's cancer revelation
Prince William will return to public duties on Thursday for the first time since his wife Kate revealed she was undergoing preventative chemotherapy for cancer.