News Release

Brampton, Ontario

In recent years, small businesses have noticed that during and after the COVID-19 pandemic, customers have predominantly been using cards as a method of payment. Businesses in Brampton and across Canada must pay an ‘interchange fee’ to process credit card transactions, which has resulted in small businesses paying out larger amounts of their revenue to these institutions to keep their businesses running. The federal government recognizes this disadvantage and MP Sidhu has been working closely with colleagues in an attempt to lower these fees. 

Today, MP Sidhu was pleased to welcome the Deputy Prime Minister and Minister of Finance, the Hon. Chrystia Freeland to the Knowledge Bookstore in Brampton South, where she highlighted commitments from Visa and Mastercard to lower the interchange fee while still protecting and maintaining the reward points that loyal customers have acquired through their programs. Through this deal, the government estimates that over 90% of card accepting businesses will see their interchange fee reduced by 27% from the average transaction fee rate. This will save small businesses an estimated $1 billion over 5 years.

By reducing interchange fees, small businesses like Knowledge Bookstore can save money on credit card processing fees and reinvest those savings into other areas of their business, such as hiring more employees, expanding their product offerings, or improving customer service.

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CONTACT:

The Office of Sonia Sidhu, Member of Parliament, Brampton South

P: (905) 846-0076   |  E: [email protected]