The Canadian Federation of Independent Business says as a result of a recent class action settlement, Visa and Mastercard, starting today, are giving small businesses the green light to add a surcharge on some credit card transactions.

If you use your credit card to make the majority of your purchases in order to accumulate rewards or points, it costs the business, every time you swipe, in a fee they have to pay back to the credit card companies. The changes don’t immediately take effect and the intent behind the settlement is to offset credit card processing fees that Visa and Mastercard charge business. Businesses which intend to surcharge for credit card usage have to give card providers 30 days’ notice and make sure their customers are notified of the surcharge.

CFIB’s Corinne Pohlmann says, “Small businesses have long been dealing with expensive credit card processing fees and trying to find ways to absorb the cost of accepting premium cards without the ability to surcharge or refuse those cards. Surcharging gives them the ability to offset some of their costs and be transparent with their customers about the fees they pay.”

A recent survey of CFIB members found that 19% of merchants intend to use the new power to surcharge, while a further 26% said they will do it if their competitors or suppliers do. More than one-third (40%) of small firms said they are not sure yet if they will surcharge, while 15% said they don’t intend to do it.

The CFIB says businesses that often sell to other businesses, like construction, manufacturing and finance/insurance, were most likely to report they will surcharge for credit card usage, while businesses that serve consumers were less likely to say they will do it.