Credit card processing and merchant services in Canada
Surcharging is legal outside Quebec, small business interchange dropped in 2024, and every province taxes sales its own way. Here's what applies to you, with the official sources.
Canada's card rules have changed more in the last four years than in the decade before. Since October 6, 2022, Visa and Mastercard have allowed merchants to add a surcharge to credit card payments, the result of settlements in class actions that Canadian merchants first brought in 2011. In October 2024, lower interchange rates for small businesses took effect, and so did a new Code of Conduct for the Payment Card Industry. Quebec still bans card surcharges outright.
So the right setup for a café in Halifax isn't the same as the one for a clinic in Calgary or a shop in Laval. The card network rules, the Code of Conduct, and Interac Debit work the same way across the country. Surcharge law and sales tax are set province by province. The national rules are below, each with its official source, followed by a table of every province and territory.
Here's where we fit. Clearo prices card processing on interchange-plus, so when interchange falls, the lower cost shows up on your statement instead of staying inside a flat rate. There's no long-term contract, no cancellation fee, and every account gets a dedicated rep.
If you aren't sure what you pay today, start with a free statement review. We'll show your effective rate, point out the fees worth questioning, and tell you whether surcharging is even an option where you operate.
Facts on this page were last checked on October 6, 2026.
Rules that apply across Canada
National card network and federal rules apply everywhere in Canada. Each province or territory can add its own rules on top, listed in the table below.
Credit card surcharges
You may add a surcharge to Visa and Mastercard credit card payments, but never to their debit or prepaid cards. The surcharge can't exceed the lesser of 2.4% or your own cost of acceptance, and you must give 30 days' notice first. Visa wants written notice to your acquirer; Mastercard wants notice to both Mastercard and your acquirer.
Disclose the surcharge at the store entrance and at the point of sale, and show the amount on the receipt. Visa also requires the surcharge to be credited back on a refund. Quebec prohibits card surcharges entirely, so see the Quebec page if you sell there.
Sources: Visa Canada, Surcharging FAQ for businesses; Mastercard, What merchant surcharge rules mean to you in Canada; Financial Consumer Agency of Canada, Merchant surcharges, service and convenience fees, and discounts
Interac Debit fees
Interac says Interac Debit has a single flat fee regardless of the purchase amount, around 10 cents per transaction, and that interchange on Interac Debit is currently set at zero. Your processor sets the price you actually pay.
You can't add your own surcharge to Interac Debit. Interac's fee page says merchants may not apply one directly and caps any surcharge fee at $0.25. In Quebec, charging any fee for paying by debit or credit card is prohibited.
Sources: Interac, Understanding fees; Interac, How Interac Debit helps your small business in the busiest times; Office de la protection du consommateur, Paiement par carte : frais interdits
Your rights under the Code of Conduct
The Code of Conduct for the Payment Card Industry in Canada took effect on October 30, 2024. Your processor must notify you 30 to 60 calendar days before a new or higher fee takes effect. You can then give notice to exit your agreement without penalty within 70 calendar days after the change takes effect.
You must also receive, or have access to, statement information at least monthly, including interchange, network assessment fees, and all other fees. If your statement doesn't show those, ask why.
Sources: Financial Consumer Agency of Canada, Code of Conduct for the Payment Card Industry in Canada; Financial Consumer Agency of Canada, Merchant rights under the Code of Conduct
Lower interchange for small businesses
Since October 19, 2024, Visa and Mastercard have applied lower interchange rates to qualifying small businesses: an annual weighted average of 0.95% on domestic consumer credit cards in store, and 10 basis points less online. Visa's lower rates applied below $300,000 in annual Visa sales, and Mastercard's below $175,000 in annual Mastercard sales. Visa has announced that its small merchant threshold rises to $750,000 in annual Visa volume on October 24, 2026.
The government's "up to 27 per cent" figure is about interchange, not your whole processing bill. On a flat-rate plan you may not see the cut at all, so check your statement.
Sources: Finance Canada, Government reduces credit card fees by 27 per cent for small business owners; Visa Canada, Upcoming interchange modifications (September 4, 2026)
Sales tax at the till
Every province and territory charges the 5% GST. Ontario uses a 13% HST, Nova Scotia's HST is 14% since April 1, 2025, and New Brunswick, Newfoundland and Labrador, and Prince Edward Island use a 15% HST. British Columbia adds a 7% PST, Saskatchewan a 6% PST, Manitoba a 7% RST, and Quebec a 9.975% QST. Alberta and the three territories charge the GST only.
Set your terminals and online checkout to the rate for where you sell, and check each province's page for the details.
Sources: Canada Revenue Agency, Charge and collect the GST/HST: which rate to charge; Revenu Quebec, Basic rules for applying the GST/HST and QST
Advertised prices and drip pricing
Since June 2022, the Competition Act treats an advertised price that customers can't actually pay, because of mandatory fixed fees on top, as misleading. Government charges such as sales tax are the exception.
We found no Competition Bureau guidance on whether an optional credit card surcharge counts as drip pricing, so get advice before you change how you advertise prices.
Sources: Competition Bureau Canada, Drip pricing; Competition Bureau Canada, Guide to the 2022 amendments to the Competition Act
Card payment rules by province or territory
A quick view of where credit card surcharges are allowed and how sales tax is set up. Open a province or territory for the details and the official sources.
| Province or territory | Credit card surcharges | Sales tax |
|---|---|---|
| Alberta | Allowed with limits Allowed on Visa and Mastercard credit cards only, capped at the lesser of 2.4% or your cost; no Alberta ban found. | 5% GST only, no PST |
| British Columbia | Allowed with limits Allowed on Visa and Mastercard credit cards up to the lesser of 2.4% or your cost, with notice and disclosure; never on debit or prepaid. | 5% GST + 7% PST (12% combined) |
| Manitoba | Allowed with limits Allowed on Visa and Mastercard credit only, up to the lesser of 2.4% or your cost, after 30 days' notice; no Manitoba ban found. | 5% GST + 7% RST (12% combined) |
| New Brunswick | Allowed with limits Allowed within Visa and Mastercard rules: credit cards only, at most 2.4% or your cost of acceptance, 30 days' notice, clear signage. | 15% HST |
| Newfoundland and Labrador | Allowed with limits No provincial ban. Visa and Mastercard credit surcharges are capped at 2.4% or your cost, need 30 days' notice, and can't touch debit. | 15% HST |
| Northwest Territories | Allowed with limits Credit cards only, capped at the lesser of 2.4% or your cost of acceptance, with 30 days' notice; no NWT ban found. | 5% GST only, no territorial tax |
| Nova Scotia | Allowed with limits Allowed on Visa and Mastercard credit only, capped at the lesser of 2.4% or your cost, after 30 days' notice. Debit and prepaid are excluded. | 14% HST (since April 1, 2025) |
| Nunavut | Allowed with limits Allowed on Visa and Mastercard credit cards only, up to the lesser of 2.4% or your cost; no Nunavut ban found. | 5% GST only, no territorial tax |
| Ontario | Allowed with limits Allowed on Visa and Mastercard credit cards, up to 2.4% or your cost of acceptance, with 30 days' notice and disclosure. Never on debit. | 13% HST |
| Prince Edward Island | Allowed with limits Allowed on credit cards under Visa and Mastercard rules: up to 2.4% or your cost, 30 days' notice, disclosed at entry, till and receipt. | 15% HST |
| Quebec | Surcharging prohibited Prohibited. Quebec law bars any fee for paying by debit or credit card, and warning customers first does not make it legal. | 5% GST + 9.975% QST (14.975%) |
| Saskatchewan | Allowed with limits Credit cards only, up to 2.4% or your cost of acceptance if lower, with 30 days' notice and signage; no Saskatchewan ban found. | 5% GST + 6% PST (11% combined) |
| Yukon | Allowed with limits Allowed on Visa and Mastercard credit cards up to the lesser of 2.4% or your cost, with notice and disclosure; no Yukon ban found. | 5% GST only, no territorial tax |
Cities we cover in Canada
- Calgary, AB
- Edmonton, AB
- Red Deer, AB
- Lethbridge, AB
- Grande Prairie, AB
- Airdrie, AB
- St. Albert, AB
- Strathcona County, AB
- Medicine Hat, AB
- Fort McMurray, AB
- Vancouver, BC
- Surrey, BC
- Victoria, BC
- Burnaby, BC
- Kelowna, BC
- Richmond, BC
- Abbotsford, BC
- Kamloops, BC
- Nanaimo, BC
- Coquitlam, BC
- Saanich, BC
- Winnipeg, MB
- Brandon, MB
- Moncton, NB
- Saint John, NB
- Fredericton, NB
- St. John's, NL
- Yellowknife, NT
- Halifax, NS
- Cape Breton, NS
- Iqaluit, NU
- Toronto, ON
- Mississauga, ON
- Brampton, ON
- Hamilton, ON
- Ottawa, ON
- London, ON
- Kitchener, ON
- Windsor, ON
- Markham, ON
- Vaughan, ON
- Oakville, ON
- Kingston, ON
- Barrie, ON
- Guelph, ON
- Greater Sudbury, ON
- Burlington, ON
- Oshawa, ON
- St. Catharines, ON
- Richmond Hill, ON
- Charlottetown, PE
- Montreal, QC
- Quebec City, QC
- Laval, QC
- Gatineau, QC
- Longueuil, QC
- Sherbrooke, QC
- Trois-Rivières, QC
- Saguenay, QC
- Lévis, QC
- Terrebonne, QC
- Saint-Jean-sur-Richelieu, QC
- Saskatoon, SK
- Regina, SK
- Whitehorse, YT
Payment services we provide
Guides for merchants in Canada
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Choosing a POS system in Canada? Set up GST, HST, PST, and QST correctly, take Interac, meet Quebec's French rules, and know what to ask before you sign.
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How to accept e-Transfer payments as a business
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Interac fees: what merchants pay to accept debit
Interac fees for merchants are a flat amount per debit sale, not a percentage. What you pay, how tap pricing works, the surcharge rule and e-Transfer fees.
Common questions
Can a business in Canada charge a credit card surcharge?
Yes, everywhere except Quebec. Since October 6, 2022, Visa and Mastercard have allowed a surcharge on credit cards of up to the lesser of 2.4% or your cost of acceptance, with 30 days' notice and clear disclosure. Their debit and prepaid cards can't be surcharged, and Quebec's Consumer Protection Act bans card fees outright.
Can I charge customers a fee for paying with Interac?
Not on your own. Interac's fee page says merchants may not directly apply a surcharge to Interac Debit, and it caps any surcharge fee at $0.25. In Quebec, any fee for paying by debit or credit card is prohibited. Interac also says Debit costs merchants around 10 cents per transaction, so the amount you could recover is small.
What can I do if my processor raises its fees?
Under the Code of Conduct for the Payment Card Industry, your processor must give you 30 to 60 calendar days' notice of a new or higher fee. You can then exit the agreement without penalty, as long as you give notice within 70 calendar days after the change takes effect. A free statement review will show whether switching is worth it.
Does my business qualify for the lower small business credit card rates?
Mastercard's lower interchange applies if your annual Mastercard sales are below $175,000. Visa's applied below $300,000 in annual Visa sales, and Visa has announced that threshold rises to $750,000 on October 24, 2026. Non-profits under the thresholds qualify too. The cuts apply to interchange, so check that your pricing passes them through to you.
Does Clearo work with businesses outside Ontario?
Yes. Clearo works with merchants across Canada and in the US, with interchange-plus pricing, no long-term contract, no cancellation fees, and a dedicated rep for every account. Pick your province above for its rules, or book a call and tell us where you sell.
Looking for the other side of the border?
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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