The short answer
You can add a surcharge to credit card payments in every province except Quebec, if you:
- Surcharge credit cards only, never debit or prepaid.
- Keep it at or below your own cost of accepting the card, and never above 2.4%.
- Give your processor 30 days' written notice first, and Mastercard as well for Mastercard.
- Post it at the entrance and at checkout, in store and online.
- Show it on the receipt, and let customers pay another way instead.
Where the rules come from
Surcharging became possible after a class-action settlement with Visa and Mastercard. Both networks changed their Canadian rules to allow it from 6 October 2022. The rules below are theirs, confirmed by the Financial Consumer Agency of Canada (FCAC). There is no federal surcharging law. Quebec's ban comes from provincial consumer protection law.
Rule 1: credit cards only
Visa prohibits surcharges on Visa Debit and Visa prepaid cards. Mastercard prohibits them on Debit Mastercard and Mastercard prepaid cards. Only consumer and business credit cards can be surcharged.
Interac debit is separate. Interac allows a surcharge of up to $0.25 on a point-of-sale debit payment, but only your processor can apply it, it must show on the transaction record and the customer must be able to cancel. Merchants may not add one themselves. Ask your processor whether it offers this.
Rule 2: the 2.4% cap
The surcharge cannot be more than the lower of:
- 2.4% of the sale, or
- your average cost of accepting that card: what you pay your processor on those cards, as a percentage.
So if your average cost on Visa credit cards is 1.8%, your Visa surcharge cannot be more than 1.8%. As interchange falls for small businesses, the most you can surcharge falls with it. Your statement shows your real cost. See how to calculate your effective rate.
Rule 3: 30 days' notice
- Visa: at least 30 days' written notice to your acquirer (your processor).
- Mastercard: at least 30 days' notice to both Mastercard and your acquirer.
Keep a copy of both notices.
Rule 4: tell customers before they pay
Visa requires a notice at the point of entry, meaning the store door or your website's first page, and at the point of sale. The checkout notice must show:
- the surcharge amount or percentage,
- that the fee is charged by you, not by Visa,
- that it applies to credit cards only.
Customers must be able to cancel without penalty and pay another way.
Rule 5: show it on the receipt
The surcharge must appear as its own line on the receipt. A few more rules from Visa's guidance for businesses:
- Refunds: no surcharge on a refund, and a surcharge already charged is refunded in proportion.
- No double charge: you cannot add both a surcharge and a service fee to the same sale.
- No convenience fees: convenience fees are not permitted in Canada.
- No higher than other cards: your Visa surcharge cannot be higher than what you charge on American Express or PayPal.
Not allowed in Quebec
Quebec's Consumer Protection Act prohibits charging a consumer more than the advertised price. Quebec's consumer protection office (Office de la protection du consommateur) applies this to card fees directly: merchants may not charge consumers a fee for paying by debit or credit card, and a warning sign does not make it legal.
If you sell to consumers in Quebec, do not surcharge. For business-to-business sales the rules are less clear, so get advice before trying it.
Is surcharging worth it?
It is a business decision as much as a fee decision.
When it can make sense: high average sales, thin margins, many premium rewards cards, and customers who can easily pay another way, such as business clients paying invoices.
When it usually does not: small tickets like coffee, where a few cents look petty; competitive retail, where a customer can walk next door; and any business whose customers feel penalized.
What to try first: check your effective rate. If you are a small business not getting the small-business interchange rates, fixing that can save more than a surcharge, without annoying anyone.
Surcharging rules at a glance
| Question | Answer |
|---|---|
| Allowed since | 6 October 2022 |
| Which cards | Credit only, never debit or prepaid |
| Maximum | Lesser of 2.4% or your cost of acceptance |
| Notice | 30 days to your processor; also Mastercard, for Mastercard |
| Where posted | Store or website entrance, and checkout |
| On the receipt | Yes, as its own line |
| Quebec | Not allowed for consumers |
| Interac | Up to $0.25, applied by the processor only |
Common questions
Can I charge a credit card fee in Canada?
Yes, everywhere except Quebec, on credit cards only, up to your cost of acceptance and never more than 2.4%, with 30 days' notice to your processor and the fee posted and shown on receipts.
Can I charge a fee for debit cards?
No. Visa and Mastercard prohibit surcharges on their debit and prepaid cards. Interac allows a surcharge of up to $0.25 only when your processor applies it.
Is surcharging legal in Quebec?
No. Quebec's consumer protection office says merchants may not charge consumers a fee for paying by credit or debit card, and posting a sign does not change that.
What is the maximum credit card surcharge in Canada?
2.4%, or your own average cost of accepting that card if it is lower.
Do I have to tell Visa and Mastercard?
Visa requires 30 days' written notice to your processor. Mastercard requires 30 days' notice to Mastercard and your processor.
Sources
- Visa Canada, surcharging FAQ for businesses.
- Mastercard Canada, merchant surcharge rules.
- FCAC, credit card fees for merchants.
- Interac, understanding fees.
- Office de la protection du consommateur, frais interdits, and Quebec's Consumer Protection Act, section 224.
- CFIB, credit card surcharging.
