Visa Inc., MasterCard Inc. and American Express Co. agreed to cut Canadian credit-card transaction fees in a move that could save smaller businesses C$250 million ($192 million) a year and crimp revenue for Canadian lenders.
The U.S. companies agreed to reduce the average annual interchange rate in Canada by 10 basis points to 1.4 percent on cards, Canada’s finance department said Aug. 9 in a statement. The new rate takes effect in 2020, and runs for five years. The government estimated that a medium-sized business could save C$25,000 over the period.
“The voluntary commitments announced today are good news for ...
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