Businesses in Ontario and across Canada can now charge you a fee if you pay with your credit card. But does that mean you could be paying more for your alcohol at the LCBO?
The change went into effect on Oct. 6 following a June settlement in a multimillion-dollar class-action lawsuit involving Visa and Mastercard over what’s known as “interchange fees.”
Before the settlement, credit card companies, banks and other payment processors in Canada were able to charge businesses a fee for every transaction where their services are used.
Now, merchants can pass those fees onto customers to a limit of 2.4 per cent, according to the Canadian Federal of Independent Businesses (CFIB).
It’s unclear exactly how many businesses will be charging the new fees, though a recent survey by the CFIB of its Ontario members found that 19 per cent of merchants intend to use it. Another 24 per cent said they would only use the surcharge if their competitors or suppliers do.
In light of the change, CTV News Toronto reached out to the LCBO to see if the Crown corporation plans on introducing the surcharge — to which they said they are not.
“At the moment, we are not considering charging surcharges for customers who use credit cards,” a spokesperson said in an email.
The LCBO and other businesses are free to implement the surcharge in the future if they choose, but they must also notify their affiliated credit card networks at least 30 days before doing so.
With files from Sean Davidson
