By Robert Skinner | WBN News | July 11, 2025
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Earlier this year, Visa and Mastercard reached a landmark $30 billion settlement with U.S. merchants to lower credit card interchange fees over the next five years. While the agreement is American, it’s already sparking discussions north of the border about whether Canadian businesses could see similar relief.

Interchange fees, sometimes called “swipe fees,” are the charges paid by merchants each time a customer uses a credit card. In Canada, these costs typically range from 1.4% to 2.5% per transaction—some of the highest in the developed world. For small businesses operating on thin margins, these fees can feel like a hidden tax.

The U.S. settlement promises to reduce fees and give merchants more freedom to steer customers toward cheaper payment methods. While Visa and Mastercard have not yet indicated any parallel changes in Canada, industry watchers expect competitive and regulatory pressure to build.

According to the Canadian Federation of Independent Business (CFIB), small retailers have long called for interchange reform. In 2020, Visa and Mastercard did agree to voluntary reductions that were expected to save merchants around $250 million annually, but critics argue those savings were quickly absorbed by rising card usage and premium rewards cards.

What should Canadian merchants watch for?

  • Potential fee reductions: If the U.S. model proves successful, Canadian regulators could revisit interchange caps.
  • Surcharging rights: The settlement reaffirms U.S. merchants’ ability to surcharge customers to recoup fees. Surcharging remains legally complicated in Canada, but this could evolve.
  • Negotiating leverage: Larger businesses may find more room to negotiate custom fee structures.

For now, Canadian merchants won’t see immediate changes. But the precedent set by this massive settlement could open the door to more equitable processing costs in Canada—and businesses should stay informed to prepare for shifts in the payment landscape.

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WBN News - South Delta Edition

Robert Skinner - Publisher

Tags: #WBN News - South Delta #Robert Skinner - Publisher #Credit Card Processing #Visa Mastercard Settlement #Canadian Business #Merchant Fees #Payment Solutions #Small Business Canada #Interchange Fees


Robert is an experienced business systems developer and coach. Give him a call at +1 604-220-4750 or connect on LinkedIn: https://www.linkedin.com/in/rlskinner/

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