Visa, MasterCard to Reduce Interchange Fees in Canada
Wednesday, November 5, 2014
Posted by: Mike Rose
Visa and MasterCard will voluntarily reduce their interchange fees in Canada to an average rate of 1.5 percent over the next five years, the Canadian Department of Finance announced on Tuesday.
The fee reductions will be effective no later than April 2015.
“In total, the two commitments represent a reduction in credit card fees of approximately 10 percent," Canadian Minister of Finance Joe Oliver said in a press release. "These commitments represent a meaningful long-term reduction in costs for merchants that should ultimately result in lower prices for consumers."
We have been advised by our card provider that this reduction is not applicable to their corporate card products . . . here is a quote from our provider:
"You may have heard or will likely hear news reports stating that MasterCard and Visa have voluntarily reduced the interchange fees charged to merchants, to an average of 1.5%. These announcements are focused on retail/personal credit cards and will NOT impact the corporate card or small business card market. As a result, today’s announcements will have no impact on the current Canadian Corporate Card products, pricing or contracts."