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The Canadian Federation of Independent Business (CFIB) would like to help small businesses get some of their money back.
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Small businesses that have been accepting MasterCard and/or Visa credit cards as payment for the last two decades — any time since March 23, 2001 — could receive a portion of a recent multimillion-dollar class action settlement with Visa and MasterCard.
Those hoping to receive some cash must apply for a rebate by Sept. 30.
What most consumers don’t know is that their high-end, super point-collecting credit cards cost the merchants who accept them big bucks.
CFGIB President Dan Kelly said his organization has no part in the lawsuit, but has followed it closely.
“The suit has been settled. There’s money coming back to merchants as a result, but many small businesses will be unaware that they are eligible for a rebate. And they must act by Sept. 30.”
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The portal to apply went live monday and is contained online in a CFIB guide sheet.
The settlement is another small step towards ensuring fairness for many small businesses that have been dealing with expensive credit card processing fees, said CFIB.
How much will businesses get? Depends on size and average annual revenue. Small merchants with an annual revenue of less than $5 million may claim a maximum of $600, for example.
“These days, with every line on their budget under pressure, every little bit helps,” said Kelly.
As part of the settlement, MasterCard and Visa will now modify their surcharge rules. Small businesses can pass on their extra credit card fees from merchant to consumer directly, should they wish to do so, in October.
Consumers, meanwhile, should know that the points and benefits they get with a premium Visa or MasterCard come at a cost.
“Canadian love points! What people don’t know is that when points pay for their trip to Paris, they’ve really paid for that trip three times over,” said Kelly.
The system rewards the rich on the backs of the poor. Merchants bury the price of accepting those high-end credit cards in the cost of their product.
The person who pays with debit, cash or a regular credit card is now paying a little more so someone else can use a fancy credit card.