Businesses can now pass on credit card fees to customers in Ontario
Businesses in Ontario are now allowed to pass on credit card fees to customers.
The change comes as part of a settlement in a recent multimillion-dollar class-action lawsuit involving Visa and Mastercard.
While it was never illegal in Ontario for businesses to pass on credit card fees to customers, Visa and Mastercard had their own rules against surcharging, which merchants were required to follow.
The Canadian Federal of Independent Businesses told CTV News Toronto there are a few things businesses and consumers in Ontario "need to know" about the new rules that came into effect on Oct. 6.
Firstly, businesses must notify their credit card network at least 30 days before starting to surcharge. They must also post notice they are surcharging, and the amounts of any surcharges at point-of-sale, as well as clearly itemize any surcharges on receipts.
According to the CFIB, the maximum surcharge customers can be charged is capped of 2.4 per cent.
Businesses are also required to clearly itemize in a dollar figure the cost of the surcharge on receipts.
The CFIB said a recent survey of its members in Ontario found that 19 per cent of merchants intend to use the new power to surcharge. A further 24 per cent said they will surcharge only if their competitors or suppliers do.
According to the survey, forty per cent of small firms in Ontario told the CFIB they are not sure if they will begin adding a surcharge and 17 per cent said they don't intend on doing it.
“We’ve asked the Ontario government to not stop small merchants from surcharging to cover the high costs of accepting credit cards,” Julie Kwiecinski, CFIB’s Director of Provincial Affairs for Ontario, told CTV News Toronto in a statement. “Each individual business should be able to decide on their own whether surcharging is right for them by weighing factors like competitiveness against the need to address rising operating costs.”
Kwiecinsk said she believes many smaller merchants are still "on the fence" about including a surcharge because they don't want to lose customers.
CTVNews.ca Top Stories
4th Indian national arrested, charged with murder of Hardeep Singh Nijjar
Homicide investigators in B.C. say murder charges have been laid against a fourth Indian national in connection to the killing of Sikh activist Hardeep Singh Nijjar outside a Surrey gurdwara last year.
'I am angry': Alberta farmers will continue fight over world class motorsport resort
The rolling hills leading to the hamlet of Rosebud are dotted with sprawling farms and cattle pastures -- and a sign sporting a simple message: No Race Track.
Man ticketed after allegedly trespassing again at Drake's Bridle Path mansion to get his bike
A man who tried to access Drake’s Bridle Path mansion earlier this week returned to the property Saturday and was apprehended again for allegedly trespassing, Toronto police say.
Couple randomly attacked, 1 stabbed, by group of teens in Toronto, police say
A man has been transported to hospital after police say he was stabbed in a random attack carried out by a group of teens in Toronto on Friday night.
Millions of Canadians have been exposed to potentially toxic chemicals, and they're not going anywhere
For decades, North Bay, Ontario's water supply has harboured chemicals associated with liver and developmental issues, cancer and complications with pregnancy. It's far from the only city with that problem.
Biden calls Trump 'unhinged,' says 'something snapped' in former president after he lost 2020 U.S. election
U.S. President Joe Biden on Saturday called Donald Trump “clearly unhinged” and claimed that “something snapped” in the former president after he lost the 2020 election.
Wildfire that forced evacuation of Fort Nelson, B.C., caused by tree falling on wires, mayor says
The wildfire that prompted the evacuation of more than 3,000 people near Fort Nelson, B.C., was caused by a tree falling on wires, according to the municipality's mayor.
Switzerland's Nemo wins 68th Eurovision Song Contest
Swiss singer Nemo won the 68th Eurovision Song Contest on Saturday night with 'The Code,' an operatic ode to the singer’s journey toward embracing their nongender identity.
IN PICTURES Northern lights dance across the night sky in southern Ont.
From London, to Grand Bend, Collingwood and Guelph, here are some highlights of Friday night and Saturday morning's northern lights display.