Credit card processing and merchant services in Nanaimo, BC
Nanaimo grew 10.3% between the 2016 and 2021 censuses. Its hotels, motels and B&Bs add a 3% MRDT and 8% PST to each room night, often on cards taken by phone or online.
Nanaimo reached 99,863 residents at the 2021 Census, up 10.3% from 2016, and ranked 11th in the province by population. For its hotels, motels and B&Bs, two taxes sit on top of the room rate. B.C. charges 8% PST on short-term accommodation, and the City of Nanaimo's March 2024 booklet for accommodation providers says hotels, motels and other fixed-roof short-term accommodation apply a 3% municipal and regional district tax (MRDT) to the room price for stays of less than 30 days.
On a $160 room night, that's $12.80 of PST and $4.80 of MRDT, before GST. Put each on its own line in your booking engine, and set the MRDT to drop off bookings of 30 days or more. The booklet is from March 2024, so confirm the rate with the City before you change anything.
Not all of it is paid at the front desk, either. A guest books by phone, or reserves online and pays a deposit weeks ahead. Those card-not-present payments carry more fraud risk than a tap at the front desk. A payment link from our virtual terminal lets the guest enter their own card details, so nobody reads a number over the phone or copies it onto a reservation card. For bookings on your own website, our online payments setup adds AVS, CVV checks and velocity rules.
Cancellations need planning too. If you surcharge credit cards, which B.C. allows within Visa and Mastercard's 2.4% cap, Visa requires the surcharge to be credited back whenever you refund the purchase. Visa also says convenience fees aren't permitted in Canada, so a flat "phone booking fee" on Visa cards is out.
We price on interchange-plus, so phone and online bookings show their real cost next to front-desk taps. A free statement review will show what you pay now, and the British Columbia page lists every provincial rule with its source.
Rules that matter in Nanaimo
MRDT on short-term accommodation
The City of Nanaimo's March 2024 information booklet for accommodation providers says all hotels, motels and other providers of fixed-roof, short-term accommodation in Nanaimo apply a 3% municipal and regional district tax (MRDT) to the price of the accommodation, meaning the room price, for stays of less than 30 days. It's charged in addition to B.C.'s 8% PST on short-term accommodation. Confirm the current rate before you change your booking system.
Sources: City of Nanaimo, Information booklet for accommodation providers, March 2024 (PDF); Government of British Columbia, PST and MRDT on accommodation
Payment services we provide
Guides worth reading next
All guidesCanada
Credit card fees in Canada: what merchants pay in 2026
What credit card fees cost merchants in Canada: interchange, network fees, and markup, the small-business rate cuts, your Code of Conduct rights, and more.
Canada
Credit card surcharges in Canada: the rules for 2026
Can you add a credit card surcharge in Canada? The 2.4% cap, 30-day notice, disclosure rules, what's off limits, Quebec's ban, and when it's worth it.
Canada
Merchant account in Canada: what to check before you sign
Getting a merchant account in Canada: what providers ask for, your rights under the Code of Conduct, contract terms to check, and how pricing models compare.
Canada
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.
Canada
How to accept e-Transfer payments as a business
How to accept e-Transfer payments as a Canadian business: set up Autodeposit, handle security questions, limits and fees, reconcile, and know when cards fit.
Canada
Chargebacks in Canada: how card disputes work for merchants
How chargebacks work in Canada: Visa and Mastercard disputes, why Interac Debit has none, Quebec's chargeback law, and how merchants can prevent them.
Common questions
What taxes go on a Nanaimo hotel room?
B.C.'s 8% PST on short-term accommodation, plus a 3% MRDT on the room price for stays of less than 30 days, according to the City of Nanaimo's March 2024 booklet for accommodation providers. On a $160 night, that's $12.80 of PST and $4.80 of MRDT, before GST. Confirm the MRDT rate is current before you update your rates.
Does the MRDT apply to a Nanaimo bed and breakfast?
The City's March 2024 booklet applies the 3% MRDT to hotels, motels and other providers of fixed-roof, short-term accommodation, for stays of less than 30 days. A B&B renting rooms by the night fits that description, so add the MRDT as its own line on the room charge, apart from the PST, and confirm with the City if you're unsure.
How should I take a booking deposit by card?
Send a payment link or invoice from a virtual terminal so the guest types in their own card details. That keeps card numbers out of your email, your phone notes and your reservation book, which also keeps PCI compliance simpler. For bookings on your own website, turn on AVS and CVV checks.
Can I charge guests a fee for booking by phone?
Not as a convenience fee on Visa: Visa's Canadian surcharging FAQ says convenience fees aren't permitted in Canada. What B.C. allows is a surcharge on Visa and Mastercard credit cards, up to 2.4% or your cost of acceptance, with 30 days' notice and disclosure before the guest pays. It applies however the booking is made, and it's refunded with the purchase.
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.
Let's talk about your payments
Tell us about your business and how you take payments now, and a Clearo rep will reach out within one business day.