Credit card processing and merchant services in Lethbridge, AB
Lethbridge licenses home-based businesses in two types, depending on whether clients come to your door. That same question decides whether you take payments remotely or across a table.
Lethbridge counted 98,406 people at the 2021 Census, up 6.1% from 2016. The City requires a valid business licence from all businesses and individuals providing a good or service in Lethbridge, unless they're exempt provincially or federally, and home-based businesses are no exception.
The home-based licence comes in two types, split by customer traffic. Type A is for a home used for a desk, a phone and an authorized vehicle only, with no customer or student visits, and the City lists it at $193. Type B covers other home occupations and workshops with customer visits, up to six customers a day, one at a time and by appointment, and it's listed at $288. Only permanent residents of the home can work in the business. The general licence is $193 a year for residents and $774 for non-residents.
Your licence type is a good guide to your payment setup. On Type A, nobody comes to you, so every payment is remote: online payments for a website, or the virtual terminal for invoices, payment links and recurring billing. On Type B, the client is sitting across from you, so tap to pay or a mobile card reader usually does the job, and a payment link can collect a deposit when the appointment is booked.
Sales tax won't complicate either one. Alberta has no PST, so taxable sales carry the 5% GST, and small suppliers under the $30,000 threshold don't have to register.
A surcharge is legal in Alberta, but it fits awkwardly in a home business. Visa wants it disclosed where customers enter and where they pay, and Lethbridge doesn't allow signs on home-based businesses, so the notice would have to go inside your door. Cheaper processing is usually simpler. We use interchange-plus pricing with no long-term contract, a free statement review will show what you pay now, and the Alberta page lists the provincial rules with their sources.
Rules that matter in Lethbridge
Home-based business licences
All home-based businesses need a valid City of Lethbridge business licence unless they are federally or provincially exempt. Type A covers a residence used for a desk, a phone and an authorized vehicle only, with no customer or student visits. Type B covers other home occupations and workshops with customer visits, to a maximum of six customers a day, one at a time, by appointment.
Only permanent residents of the home may carry out the business, no aspect of it may be visible from outside the building, and signs are not permitted.
Sources: City of Lethbridge, Home based business; City of Lethbridge, Business licences
Payment services we provide
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Common questions
Does a home-based business in Lethbridge need a City licence?
Yes. The City says all home-based businesses require a valid City of Lethbridge business licence, unless they're federally or provincially exempt. Which type you need depends on visits: Type A is for a home used only for a desk, a phone and an authorized vehicle with no customer visits, and Type B is for home businesses that see customers by appointment.
How does a Type A home business take card payments?
Remotely, since clients don't come to the house. The virtual terminal lets you send invoices and payment links or take a card over the phone, and online payments add a hosted checkout to your website with AVS and CVV checks. Our guide to payment links compares links, invoices and hosted checkout.
What does a Lethbridge licence cost if my business is based outside the city?
The City lists the general business licence at $774 a year for non-residents, against $193 for Lethbridge residents. If you're based elsewhere and take work in the city, budget for the higher fee, and check the City's page for current amounts before you apply.
Can a Lethbridge home studio add a credit card surcharge?
Alberta doesn't ban it, so Visa and Mastercard's rules apply: credit cards only, up to 2.4% or your cost of acceptance if that's lower, with 30 days' notice. Visa also requires disclosure at the point of entry and the point of sale. Lethbridge doesn't permit signs on home-based businesses, so that notice would have to sit inside, where clients come in.
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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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