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
BREAKING King Charles' cancer treatment progressing well, says Buckingham Palace
King Charles III’s doctors are 'sufficiently pleased' with his cancer treatment and he is expected to return to public-facing duties, Buckingham Palace announced on Friday.
BREAKING Orca calf that was trapped in B.C. lagoon for weeks swims free
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
'Unacceptable': Trudeau reacts after AFN chief says headdress taken from plane cabin
After the Assembly of First Nations' national chief said her headdress was taken from an airplane cabin this week, Prime Minister Justin Trudeau called the incident 'unacceptable' and a 'mistake' on the part of Air Canada.
DEVELOPING Bird flu outbreaks: WHO weighs in on public health risk
The current overall public health risk posed by the H5N1 bird flu virus is low, the World Health Organization said on Friday, but urged countries to stay alert for cases of animal-to-human transmission.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
Regina police officer injured after being accidentally shot by fellow officer's gun
An investigation is underway after a Regina police officer was accidentally shot by a fellow officer’s gun during the search of a house early Friday morning.
From faulty kids' cribs to flammable kids' bathrobes, here are the recalls of the week
Health Canada issued recalls for various items this week, including kids’ bathrobes, cribs and henna cones.
Taylor Swift dons Montreal designer's dress in 'Fortnight' video
A pair of Montreal designers' work has now been viewed over 41 million times. Taylor Swift dons a Victorian throwback black gown in her latest music video, 'Fortnight', designed by UNTTLD due Simon Belanger and Jose Manuel Saint-Jacques.
Island near Mull of Kintyre for sale for US$3.1 million
An idyllic 453-acre private island is up for sale off the west coast of Scotland and it comes with sandy beaches, puffins galore, seven houses, a pub, a helipad and a flock of black-faced sheep.