The reimbursement is a 'welcome bit of financial relief to small businesses'
The Canadian Federation of Independent Business (CFIB) has reminded small business employers that they have only until the end of the month to apply for rebates related to the multimillion-dollar settlement. The settlement stems from a recent class action lawsuit against Visa and Mastercard for restricting merchants from surcharging or refusing higher-cost credit cards, leaving the so-called interchange rates on purchases to be shouldered by businesses.
The settlement sees to it that employers who accepted Visa and/or Mastercard credit cards as payment between March 23, 2001, and September 2, 2021, are eligible for rebates to up to $5,000. Corinne Pohlmann, Senior Vice-President of National Affairs at CFIB, said the settlement provides a "welcome bit of financial relief to small businesses" that paid for credit card processing fees. The application for these rebates, however, end on September 30.
"Businesses that have not yet applied should do so today, especially as the process does not require most to submit documentation," said Pohlman.
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Claims can be filed through the Credit Card Class Action website, where applicants will be requested to provide proof that they collected credit card payments within the settlement's covered period.
"Note: No documentation is required for merchants classified as 'small businesses,'" as per the CFIB website.
In addition to rebates, the settlement also gives merchants the authority to pass credit card fees to customers. Meanwhile, the CFIB reiterated its call to the government to deliver on its 2019 promise to reduce credit card processing fees for small businesses.
"The Liberal government has frequently promised to lower credit card fees in its election campaigns and budgets," said Pohlmann. "This would be an excellent way of helping small businesses deal the massive inflationary pressures they are facing."
