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
2-hour wildfire evacuation notice issued for some Fort McMurray neighbourhoods
A wildfire evacuation alert for some Fort McMurray residents has been updated to a two-hour evacuation notice.
Sask. RCMP provide update on 'significant' sexual assault, child exploitation investigation
Saskatchewan RCMP are set to provide an update on what the service calls a 'significant' sexual assault and internet child exploitation investigation.
Maximum payout for LifeLabs class-action drops from $150 estimate to $7.86
Canadian LifeLabs customers who filed an application for a class-action settlement began receiving their payments this week, though at a much lower amount than initially expected.
Alice Munro, Nobel literature winner revered as short story master, dead at 92
Nobel laureate Alice Munro, the Canadian literary giant who became one of the world's most esteemed contemporary authors and one of history's most honoured short story writers, has died at age 92.
Latest updates on air quality alerts, and when the smoke may reach Ontario and Quebec
Wildfires have led Environment Canada to issue air quality advisories for parts of B.C., Alberta, Manitoba, Saskatchewan and the Northwest Territories, as forecasters warn the smoke could drift farther east.
American sought after 'So I raped you' Facebook message detained in France on 2021 warrant
An American accused of sexually assaulting a Pennsylvania college student in 2013 and later sending her a Facebook message that said, 'So I raped you,' has been detained in France after a three-year search.
Are these Canada's best restaurants? Annual top 100 list revealed
The annual list of Canada's top restaurants in the country was just released and here are the places that made the 2024 cut.
1 killed, 3 injured in head-on crash on Hwy. 417 in Ottawa
Ontario Provincial Police are responding to a fatal collision involving two vehicles on Highway 417 in Ottawa's west end on Tuesday morning.
Significant police presence as Israeli flag flies at Ottawa City Hall
The Israeli flag is flying at Ottawa City Hall today to mark the country's national day, with plans to hold a private ceremony to mark Israel's Independence Day. There is a significant police presence at City Hall, including security barriers outside the main doors.