In recent years, Stripe has seen an increase in network fees and other costs, like new CVV check fees and higher commercial card fees. In October of this year, Visa and Mastercard will decrease the fees Stripe pays for personal credit cards by up to 0.10% for qualifying small businesses. These changes increase total costs for Stripe. Under your current standard pricing plan, Stripe simplifies this for your business by providing a single consistent price per transaction and your pricing will remain the same.
No, your pricing will remain the same.
Each card transaction that your business processes incurs many fees from card networks like Visa or Mastercard. These fees change multiple times a year. Under your current pricing plan, Stripe simplifies this for your business by providing a single, consistent price per transaction.
In recent years, Stripe has seen an increase in network fees and other costs for Canadian businesses. Starting October 19 of this year, Visa and Mastercard will decrease the fees Stripe pays for personal credit cards by up to 0.10% for qualifying small businesses. Together, these changes increase costs for Stripe. However, your pricing will remain the same.
There are two main types of fees charged to Stripe for processing a Visa or Mastercard transaction: Scheme fees (paid to card networks) & interchange fees (paid to issuing banks).
Starting October 19, 2024, Visa and Mastercard are decreasing the domestic interchange fees Stripe pays for transactions processed by qualifying small businesses in Canada. Changes include reducing:
There have also been recent increases to network costs and other costs which include new CVV check fees, higher fees for commercial cards, new types of authorization fees and introduction of GST/ HST for all scheme fees. When averaged together, these increased fees and costs exceed the interchange fee reduction. However, instead of passing on a net increase in costs and fees, your pricing will remain the same.
Visa and Mastercard determine small business eligibility based on the annual transaction amount with each card network, in addition to other criteria. The annual transaction amounts are CAD $175,000 or below for Mastercard and CAD $300,000 or below for Visa, from Apr 1, 2023 to Mar 31, 2024.
If you only process with Stripe, you can see your annual transaction amount in your Dashboard:
There are no changes to Stripe fees for you or your connected accounts.
Under an IC+ pricing model, any change in network costs is passed through to you. If you are on IC+ pricing with Stripe and are a qualifying small business, the decrease in domestic interchange fees for Visa and Mastercard will be passed on to you, effective October 19, 2024. Note that per the IC+ pricing model, other network costs and fees will also be passed through to you, and your overall costs may have increased more than the recent interchange reduction. Refer to the network cost updates page for more details (you’ll need to log into your Stripe account for access).
This support page provides you with more details on the notice we sent to Canadian businesses. That notice is a legal notice sent to Stripe users, even those who have unsubscribed from optional marketing notices. You cannot unsubscribe from legal notices, but if you’d prefer not to receive any further legal notices from Stripe, you can close your account by following these steps.
If you use Stripe Connect, your connected accounts use the Stripe Dashboard, and Stripe manages risk: There’s no action needed from you. Stripe will automatically notify your connected accounts with these updates.
For all other businesses that use Stripe Connect: You are responsible for sharing this update with your Canadian users in a timely manner.