About one in five Canadian merchants are considering charging customers who pay with a credit card a surcharge to offset processing fees, a new survey by the Canadian Federation of Independent Business (CFIB) shows. But most are reluctant to do so for fear of losing customers.

The CFIB report precedes new rules, which take effect Thursday, that give small and medium-sized businesses the power to levy a surcharge on certain credit card transactions. However, this option is not offered to Quebec traders as the Consumer Protection Act prohibits it.

While 19% of CFIB survey respondents say they will charge the additional fee, 26% said they will only do so if their competitors or suppliers do so. Around 40% of retail traders say they are not yet sure of their decision and 15% have no intention of claiming the bid.

Businesses that frequently sell to other businesses were more likely to charge additional fees for using credit cards, while businesses that serve consumers were less likely to say so, according to the survey.

Corinne Pohlmann, CFIB senior vice president of national affairs, said small merchants have long struggled with high credit card processing fees. The ability to charge additional fees should further help smaller traders cope with the sharp increase in their operating expenses.

However, CFIB Vice President for Quebec, François Vincent, regretted that Quebec’s plan differed from that of other provinces.

“It is necessary to modernize the consumer protection law in order to adapt it to today’s context,” he said in a press release, specifying that he intends to deal with this “priority dossier” with the next Quebec Minister of Justice forming the new Council of Ministers .

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