Canada's small- and medium-sized businesses keep main streets flourishing across the country, create good-paying jobs and deliver the dream of entrepreneurship. It is essential that these businesses thrive so they can continue to be the bedrock of our communities and our economy.
Today in Vancouver, the Honourable Carla Qualtrough, Minister of Sport and Physical Activity, and Member of Parliament (Delta), met with the Cloverdale Chamber of Commerce and local businesses to discuss the federal government's new support to help small- and medium-sized businesses start up, grow and thrive.
First, the federal government announced a revised Code of Conduct for the Payment Card Industry in Canada, to protect more than 1 million businesses that accept credit and debit card payments. Starting October 30, 2024, the revised code will help businesses compare prices and offers from different payment processors and reduce the complaint-handling response time by nearly 80 percent, from 100 business days to just 20. All major payment card network operators in Canada have agreed to the terms of the revised code. Certain obligations requiring complex or technical system changes will take effect by April 30, 2025.
Second, the federal government announced that new, reduced credit card transaction fees for small businesses will take effect October 19, 2024. More than 90 percent of small- and medium-sized businesses that accept credit cards will receive lower rates and see interchange fees reduced by as much as 27 percent. These fee reductions are expected to save eligible small businesses about $1 billion over five years. Reduced credit card transaction fees will save small businesses thousands of dollars every year. For example, if a store processes $300,000 in credit card payments, it currently pays nearly $4,000 in annual fees. With these new agreements, the store could save $1,080 in fees every year.
The government is taking action to help businesses start up, grow and thrive, by reducing the costs of running a business. These new supports for business owners build on our government's move to lower the small business tax rate to nine percent, which saves small businesses $6 billion every year. In Budget 2022, our government lowered small business taxes further by making the nine-percent federal small business tax rate available to more businesses as they grow, which is saving businesses another $660 million in taxes from 2022-23 to 2026-27.
