Toronto - Companies in Canada may be eligible to claim hundreds of dollars as credit card processing fees following a multi-million dollar class action settlement with Visa and Mastercard.

The Canadian Federation of Independent Business says merchants can now apply for rebates on what are called swipe fees charged on transactions dating back two decades.

This settlement comes as the pandemic accelerated the shift away from cash purchases towards digital payments with more consumers shopping online.

Corinne Pullman, Senior Vice President of National Affairs at CFIB, said credit card fees have become a growing problem for small businesses in Canada.

Credit cards impose what are called interchange rates on merchants, fees charged on every sale paid to credit card companies, payment processors, and banks.

Representatives from CFIB add that while the settlement may not change the fees, it will give merchants the option to pass these fees onto customers starting this fall.

Editor: Dima Abu Khair