Visa vs Mastercard Small Merchant Limits in Canada

What changed on October 24

Visa Canada raised the ceiling of its Small Merchant Interchange Program from CAD 300,000 to CAD 750,000 in annual Visa volume, effective October 24, 2026, and lowered several small merchant rates on the same date. CFIB called the expansion a big win for small businesses. Mastercard is not expanding its program, CFIB said, and its threshold remains $175,000 in annual sales. Our earlier article lists the new Visa rates in full.

Why the two limits matter

Because the limits differ, the same business can sit inside one program and outside the other. For example, a shop with $400,000 a year in Visa sales and $250,000 in Mastercard sales would be under Visa's new limit but over Mastercard's. It could get Visa's small merchant rates and still pay standard Mastercard rates on the same day. The example is only an illustration: your own split between card brands decides where you land.

How to check where you stand

Your processor or acquirer applies the program, not you. If you think you qualify and nothing changes, ask.

Interchange is not your whole rate

Small merchant programs lower interchange, the part of the fee paid to the card-issuing bank. How much of that reaches you depends on how you are priced. On interchange-plus pricing, a lower interchange shows up on your statement. On a flat or tiered rate, your processor may keep charging the same rate. Ask one question in writing: if my interchange drops, will my rate drop with it?

New network fees on the way

CFIB also warned that new fees are coming. Both networks are adding a fee of 1.8 US cents per domestic transaction: Mastercard from this month and Visa from April 2027. These fees are usually passed through to merchants and can eat into interchange savings, so look at the whole statement, not one line.

What changes for larger and multi-location merchants

Thresholds are usually measured on annual volume. Growing businesses near a limit should watch their numbers, because crossing it can mean higher rates. Businesses with several locations or several merchant accounts should ask their processor how volume is counted across accounts, whether each location is assessed separately, and which program each account is in. Enterprise merchants well above both limits will not qualify for either program, but should still check that the networks' standard rates and new per-transaction fees are passed through at cost.

Get a second look at your statement

CELER Merchants is an independent agent, not a processor. Send us a recent statement and we will check your Visa and Mastercard volume, which programs should apply, and whether the savings are reaching you, free.