On October 6, 2022, the new Canadian Government law allowing businesses to pass on credit card fees to customers came into effect. The law is designed to help businesses by reducing the amount of money they must pay in credit card fees. This is great news for businesses such as those with a gas station for sale.
The new law is a positive step for businesses in Canada. It will help them to compete with businesses in other countries who do not have to pay credit card fees. For example, a gas station for sale in Canada will now be able to charge a customer slightly more per liter of gas if the customer pays with a credit card. This will help businesses to offset the cost of credit card fees and keep prices down for consumers.
The new law is also good news for consumers, as it will help to keep prices down. A gas station for sale that can pass on credit card fees, is less likely to raise prices on other products and services. This will help to keep inflation low and help consumers save money.
What Does the New Law Require?
The new law applies to all businesses in Canada. It comes as a result of a multi-million-dollar lawsuit involving both Visa and Mastercard.
Specifically, the new law requires businesses to:
- Get explicit consent from customers before charging them any fees for using a credit or debit card
- Disclose all fees upfront in a clear and conspicuous manner
- Give customers the option to pay by cash, check, or debit card
The new law is also intended to crack down on businesses that surreptitiously add credit card fees to customers’ bills. This is a practice that has been increasingly common in recent years.
How Does the New Law Affect Sellers?
This is good news for sellers as it gives another benefit to a potential new owner. For example, a seller who has a gas station for sale can show their businesses with an increased profit margin that could be as high as an additional upto 30 – 40% in fuel sales profits. This is a massive increase for a gas station as they typically have tight profit margins.
How Does the New Law Affect Buyers?
Because the new law gives businesses the right to pass on credit card fees to their customers, buying a commercial property, such as a gas station for sale, becomes an even more attractive proposition, especially with the anticipated 30 – 40% increase in fuel sales profit margin.
This is good news for those looking to invest in a gas station for sale. The increased profit margin will make it easier to obtain financing and recoup the investment quickly.
Controversy
The new law has been controversial, with some people arguing that it will lead to businesses passing on the cost of credit card fees to customers in the form of higher prices. However, the Government has said that companies will only be able to pass on the cost of credit card fees if they can show that they have made efforts to reduce their credit card fees. This means businesses, such as a gas station for sale, still need to be careful about pricing their products and services.
In A Nutshell
Only time will tell how the new law will affect businesses and consumers in Canada. In the meantime, if you have a gas station for sale, the Government has just handed you a great new selling point. If you are a buyer, it will undoubtedly make that gas station for sale a lot more attractive. Contact us today at GasStationFor Sale.ca and discover how this could be the boost you need to becoming self-employed.
