Dick Durbin, D-Ill., and Roger Marshall, R-Kan., are co-sponsoring the Credit Card Competition Act which aims to cut credit card interchange fees for merchants by mandating a lower-cost card-processing option. In the U.S.,the Federal Reserve recently proposed lowering the cap on debit card interchange, while Sens. have cut credit card interchange below 1% in recent years. Jurisdictions in Asia, Europe and the U.K.
Overall, small businesses' interchange fees will decline by about 27% from existing levels, amounting to small-business savings of about $1 billion over five years, the release said.Ĭurrently the average interchange fee for a credit card processed in Canada on Visa's network is 1.4% and some credit cards charge merchants up to 3% per transaction, CBC News reported earlier this year. Agreements with the card networks, affecting more than 90% of Canada's credit card-accepting businesses, will take effect in the fall of 2024, the release said. The card networks also agreed to adjust their rules so that interchange fees small businesses pay for online transactions will fall by 10 basis points. The Government of Canada has finalized agreements with San Francisco-based Visa and Purchase, N.Y.-based Mastercard to reduce the credit card interchange fees small businesses pay to banks for in-store transactions to 0.95% from about 1.4%, according to a press release on Tuesday.
