Have small-business-owner clients who complain about credit card transaction fees?
Just in time for the holidays: Visa and MasterCard have announced the first-ever reduction in the interchange fees that small business owners pay to accept credit cards, says the Canadian Federation of Independent Business.
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The new rates are for electronic, in-person transactions for the majority of small and medium-sized merchants. Both Visa and MasterCard have announced general rate reductions, with MasterCard also announcing a lower rate category for independent businesses in 25 sectors, including:
- Taxis
- Hardware stores
- Lawn/garden supplies
- Variety stores
- Bakeries
- Misc. food stores
- Alterations/tailors
- Eating places
- Restaurants
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- Drug stores
- Book stores
- News dealers
- Pet shops
- Drycleaners
- Barber/beauty shops
- Shoe repair/shine
- Car washes
This announcement should mark an end to the regular fee hikes and ever-higher levels of premium cards which have become the norm in recent years. Consumers should also breathe a sigh of relief, as these fees are inevitably built into the price of everything they buy, to the tune of $5-7 billion a year.