A global payment company will give members of Canada’s largest small- and medium-business association lower rates on American Express transactions.
Chase Merchant Services will charge a new lower rate to Canadian Federation of Independent Business members that process less than $500,000 in Amex transactions.
CFIB says the deal aims to make it easier for small businesses to accept Chase payment cards.
CFIB president Dan Kelly says the partnership means many of the federation’s members could see significant savings thanks to the offer, with some members potentially seeing fees reduced by almost 50 per cent.
“This new deal is a big step forward for small business and recognizes their importance to the Canadian economy,” Kelly said. “Many of our members could see significant savings with the new offer. This will benefit CFIB members by lowering the cost of offering Amex as a payment option, while ultimately providing value to consumers with greater access and payment choice.”
Retailers pay fees each time consumers use a credit card. The fees differ based on type of credit card, business and other considerations.
As well, Amex transactions delivered through Chase will be processed quickly, give merchants next-day payment in most cases, and administration time will be cut by having one statement only, covering both Amex and Chase transactions.
The retail industry has been advocating for lower fees, arguing that Canadian businesses pay some of the highest fees worldwide.
CFIB’s 110,000 members collectively process more than $12 billion in electronic payments through Chase every year.
More information on the agreement can be found here.
— with files from Financial Post staff