Visa widens Canada's small-merchant interchange rate to $750,000 in sales as both networks add a per-transaction fee

Visa is raising the sales ceiling for its reduced small-business credit card interchange rate in Canada. From 24 October 2026, businesses with up to CAD 750,000 in annual Visa volume will qualify, up from the CAD 300,000 limit set when Ottawa reached its fee agreement with the networks in 2024. The Canadian Federation of Independent Business (CFIB) announced the change on 14 October and said tens of thousands of firms will now be eligible. Merchants already on the lower rate will also pay less. Mastercard is not following. Its small-merchant programme stays capped at CAD 175,000 a year in Mastercard sales, so a business can now qualify for Visa's lower rate while paying standard interchange on Mastercard. Both networks are also adding a new charge. According to CFIB, Mastercard is applying a fee of 1.8 US cents to every domestic transaction from this week, and Visa plans to bring in the same fee in April 2027. The fee is billed to processors first, but CFIB warns it is usually passed down to merchants. For businesses with many low-value sales, a flat per-transaction charge can cancel out much of what the rate cut saves. The changes matter to Canadian online sellers because interchange is the biggest part of card acceptance costs, and the size of the saving depends on how each processor reprices its plans. CFIB is asking for the small-merchant rates to cover more card brands, for the thresholds to be reviewed regularly and for processors to pass the savings on in full. Merchants on blended or flat-rate pricing may see no change at all unless their provider updates their plan.