B2B Payments

Canada Post Strike Is Bad News For SME Payments


Canada Post is ready to strike, and that could mean significant disruptions to small businesses making and receiving payments.

Reports on Friday (Aug. 26) said Canada Post’s largest union gave its 72-hour strike notice, and while the Canadian Federation of Independent Business (CFIB) is pushing for a resolution, a strike is likely to force small businesses to make changes to the way they accept payments.

In addition to shipping out goods to consumers, small businesses rely on the post to accept payments, the CFIB said. Small businesses also rely on the post when sending or receiving B2B payments to and from suppliers when paying by check.

In response to the threat of a strike, the CFIB said it will open its ZoomShipR service, typically reserved only for CFIB members, to all independent Canadian businesses until Oct. 1.

“Many small businesses rely heavily on Canada Post, and the current dispute is causing a lot of uncertainty and scrambling,” CFIB President Dan Kelly said in a statement.

“We urge the union to compromise to ensure the long-term sustainability of Canada Post,” Kelly continued. “The longer the uncertainty drags on, the more Canada Post customers, including small businesses, are going to find other ways to accept payments and ship goods. And those customers may never come back.”

Reports said Canada Post’s dispute stems from a disagreement over pension liabilities.


New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

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