Canadian Consumer Rewards Coalition

The Canadian Consumer Rewards Coalition (CCRC) is a not-for-profit organisation dedicated to protecting the rights of Canadian consumers.

Our mission is to protect and preserve the credit card rewards and points that Canadians have rightfully earned, while ensuring they can continue to earn and enjoy these valuable loyalty benefits in the future.
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Every year, millions of Canadians depend on their reward points for essential purchases – whether it’s filling up at the gas station, stocking up on groceries, or booking flights and hotels. In fact, around 75% of Canadians take part in rewards programs annually, with the average household earning over $500 in points each year.

But the future of consumer rewards programs remains at risk. Frequent changes in government policy and regulations threaten to limit access to these programs. That’s why the CCRC is dedicated to continuous advocacy – ensuring that the voices and concerns of consumers are heard by elected representatives, officials, regulators, and key decision-makers nationwide.

Time and again, with the support of tens of thousands of Canadians, CCRC has stepped up to defend loyalty rewards. Our efforts have successfully prevented government actions – like arbitrary reductions in transaction fees – that would have made it harder for Canadians to earn and enjoy their credit card points.

Together, we’re working to keep consumer rewards strong and accessible for all

Ongoing cost-of-living and affordability pressures are making it harder than ever for Canadians to feel secure about their finances. During tough times like these, every little bit helps when it comes to making ends meet.

Credit card reward programs offer genuine value to Canadians, offering tangible benefits for daily spending. Whether it’s helping to cover the cost of groceries, gas, or making family holidays travel more affordable, reward points make a meaningful difference in people’s lives.

Unfortunately, when Canadians need these rewards the most, they’re at risk of being cut back or eliminated. For years, some retailer associations have been urging the government to lower credit card transaction fees to boost business profits. While they claim these changes will save consumers money, the reality is that businesses are more likely to keep the extra profits for themselves, leaving you without savings or valuable reward points. We have seen this happen in other jurisdictions around the world.

Wha'ts the Solution?

The most effective way for Canadians to protect their points and rewards is to stand together and make their voices heard in Ottawa. By uniting as a community, we can guarantee that the interests of consumers are impossible to ignore. When you sign up as a CCRC supporter, you join a community of tens of thousands of Canadians who are committed to defending and safeguarding the credit card points and rewards you’ve earned. Together, we can keep up the momentum and continue advocating for your rights. Join the campaign today – invite your friends, family, and colleagues to get involved. Follow CCRC on social media for the latest updates and action alerts. Your support makes all the difference.

Persistent Government Threats

Canadians’ credit card points and rewards are at risk thanks to the government’s constant threats to impose more regulations on credit card fees that in part help fund these programs. Every few years, proposals to cut or cap fees resurface, threatening the rewards millions of Canadians rely on for groceries, gas and everyday essentials. The threat isn’t going away. That’s exactly why the CCRC exists: to represent consumer voices in the halls of power and defend the credit card points and rewards that Canadians count on from government overregulation and merchant lobby demands.

November 2014

Voluntary Agreement to Reduce Fees

In 2014, the biggest payment networks in Canada agreed to reduce fees charged to merchants for each transaction to an average of 1.5%. Despite that, merchant organizations immediately claimed that the cuts did not go far enough and asked for more.

August 2018

Further Fee Reductions for Small and Medium-Sized Businesses

In August 2018, the federal government announced new voluntary commitments from payment networks to further lower credit card costs for small and medium-sized businesses. Under the agreement, networks reduced domestic consumer interchange fees to an average effective rate of 1.40% for five years, while narrowing the gap between the highest and lowest fees charged to merchants.

October 2018

Rising Political Focus

In 2018, politicians and political parties in Ottawa began zeroing in on potential changes to credit card fees again ahead of an election. Political parties started using the issue of credit card fee reductions in their platforms. They only stopped after being faced with constituent pressure not to do anything that could threaten points and rewards.

August 2021

Department of Finance Consultation

In the summer of 2021, The Department of Finance once again launched a public consultation on reducing credit card fees. This was a key moment, showing that the government was actively considering policy changes that could affect the current system and the value of your credit card rewards. The consultation became one of the most engaged in the Department’s history, with hundreds of Canadians across the country participating to let the government know they wanted their points and rewards to be protected.

2022 - 2023

Ongoing Policy Reviews

Despite the government backing away from immediate action thanks to the strong response received in 2021, the next few years saw continued attempts to reduce fees. The Department of Finance launched another informal consultation with the same results. However, continued attention showed that despite strong consumer pushback, the issue was not going away.

2023 - 2024

Fees Further Reduced

In the spring of 2023, payment networks once again reached a voluntary agreement with the government, reducing fees for in-store transactions to an average of 0.95% specifically for small businesses. This was a reduction of more than 27%. Despite this, many merchant groups once again complained that the agreement did not go far enough, signaling that the issue was far from closed.

2024 - 2025

Renewed Scrutiny and Continued Threat

Scrutiny on credit card fees continued. In the fall of 2024, the House of Commons Industry Committee launched a study of “credit card practices”, looking at a host of issues including more cuts to fees that could threaten points and rewards. The study was interrupted by the 2025 election. During the campaign, the Bloc Quebecois once again made credit card fees part of their election platform.

There are typically four parties in a credit card transaction:

The consumer makes their payment.

The consumer’s bank which holds their funds and issues their credit card.

The retailer receives payment from the consumer.

The retailer’s bank holds the retailer’s funds and accounts and processes payments through various Point-of-Sale systems.

After you tap your card, the payment goes through a series of fraud checks and authroisations within the credit card networks before your money is deposited in the retailer’s account, minus the interchange fee that funds and enables the checks and other features offered by the networks.

Additional Reading

What is the current interchange fee landscape?

In November 2014, Visa and Mastercard agreed to voluntarily freeze interchange fees at 1.5% for five years in Canada. The move came as the retail lobby complained of rising costs and pressured the federal government to intervene. Nearly ten years later, the situation has remained the same. The retail lobby has kept pushing for lower fees, complaining that costs are still rising and that the pandemic and inflation have made things worse. As a result, credit card companies again agreed to lower interchange fees further. Under the new agreement announced in May 2023, in-store credit card transactions will be reduced to an average of 0.95%. That represents a reduction of more than 30%. However, despite the new agreement, the retail lobby started complaining again, asking for broader and even more significant cuts. It is clear they will not stop putting pressure on the government. If these cuts continue to happen, they could lead to disappearing reward points and programs for Canadians nationwide.

What are interchange fees?

Banks and other retailers offer loyalty points, rewards, and cashback programs to encourage you to choose and use their credit cards over the competition. Retailers pay interchange fees, also known as transaction fees or swipe fees, to accept and receive secure payments via credit card. These fees also help fund in part loyalty programs enabling consumers to collect and enjoy reward points, cash-back programs, and other discounts. The average fee of the two major credit card providers is already under 1.5%. Under a recent new agreement with the federal government, fees for small businesses are set to be cut yet again to under 1%. Despite these significant fee reductions, retailers continue to pressure the government for additional reductions to increase profits. For more information, click here

Would lower fees benefit consumers?

No. In fact, the evidence points to the contrary. The retail lobby claims that lower fees will result in savings for businesses, some of which will be passed down to consumers through lower prices. We know from examples in other jurisdictions that this will likely not happen. When Australia cut credit card transaction fees, the Royal Bank of Australia hoped to see more savings passed on to consumers. However, a Macdonald-Laurier Institute study found that in the years since credit card fees were cut there were no measurable savings for consumers. On the contrary, banks increased the annual fees people paid for credit cards to offset losses resulting from lower transaction fees. There is no reason to think that a further cut of credit card fees in Canada would result in anything different. It will be a win for big box retailers, and a loss for everyone else.

How would lower fees affect you?

Businesses promise that the significant cost savings from reduced fees will be passed down to consumers at checkout. But in reality, while business profits rise after fees are cut, prices either remain the same or often continue to increase. In addition, consumer reward points are usually among the first benefits to disappear entirely or are significantly reduced, as points accrue more slowly with less value. This is not speculation. This has already occurred in other countries and could easily happen here in Canada. For more information, click here

Would lower fees help small businesses?

Lower fees will only help big businesses. Large retailers would save billions of dollars, and increased profits would be passed onto shareholders, not small businesses or consumers. As the payment networks incur revenue losses due to lower fees, small businesses and mom-and-pop stores will no longer negotiate discounted prices for using credit card networks, negatively impacting their bottom line. While big banks can absorb the costs of lower transaction fees, smaller community banks and credit unions would likely need help as their revenues diminish.

What else would lower fees impact?

Innovation. Transaction fees go toward funding a lot of convenience and safety features that have made card payments the preferred payment method in this country. But they also support further innovation, research, and new offers and products. If transaction fees are cut, banks will cut any non-essential part of their business related to those fees, which will mean fewer offers, less innovation, and a drop in the quality of service you get as a customer.

Canadians have already added their names. Join our growing list of supporters.

Every day, millions of Canadians use reward-based credit cards to make purchases from basic necessities to fun and novelty items, collecting reward points while doing so. The CCRC fights to protect Canadians’ hard-earned points and rewards, and their ability to keep collecting and using them against any encroachment by government or other groups. We have been able to do so thanks to the support of everyday Canadians across the country. Join us to help us keep up our fight.

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