Businesses may be eligible to claim hundreds of dollars in credit card fees

Businesses in Canada may be eligible to claim hundreds of dollars in credit card processing fees following a multimillion-dollar class action settlement with Visa and Mastercard.

The Canadian Federation of Independent Business says merchants can now apply for rebates on so-called swipe fees charged on transactions dating back two decades.

The settlement comes as the pandemic quickened a shift away from cash towards digital payments as more consumers shopped online.

Corinne Pohlmann, senior vice-president of national affairs at CFIB, says credit card fees have become a growing issue for small businesses in Canada.

Credit cards charge merchants so-called interchange rates, a fee charged on every sale and paid to credit-card companies, payment processors and banks.

The CFIB says while the settlement doesn’t change the fees, it will give merchants the option to pass those charges on to customers starting this fall.