Credit card processing and merchant services in Vancouver, BC
Vancouver kitchens, cafes and shops deal with liquor PST, bag fees and a cup fee that no longer exists.
Here's a quick test for a Vancouver cafe: does your POS still add 25 cents to every single-use cup? The City's cup by-law required that fee until it was repealed effective May 1, 2023, so it's no longer a required line on anyone's receipt. Bags are a different story. The provincial rules that took effect on July 15, 2024 set a minimum of 25 cents per new paper bag and $2 per new reusable bag, in Vancouver as everywhere else in B.C.
Restaurants and bars need more than one PST setting. Food is exempt from B.C.'s PST, soda carries 7%, and liquor carries 10%. A tab with wings, a cola and two pints has three different PST treatments, and a POS set to a single rate gets at least one of them wrong.
Professional firms can relax for now. B.C. paused its plan to extend PST to accounting, engineering, architecture and some other services, so invoices and payment links sent through a virtual terminal shouldn't add PST for that work.
The licensing side is short. Every business operating in the city needs a City of Vancouver business licence, and trades that cross municipal lines can look at the Metro West Inter-Municipal Business Licence, one licence that lets certain businesses work in 6 participating cities.
If you want a second opinion on your rates, send a recent statement for a free review. We'll show you what each card type would cost on interchange-plus pricing, and since there's no long-term contract, you're free to leave whenever you like. The British Columbia page has every provincial rule and its source.
Rules that matter in Vancouver, BC
Single-use cup fee repealed
Vancouver businesses are no longer required to charge a minimum 25-cent fee on single-use beverage cups. The City repealed its single-use cup by-law and the fee effective May 1, 2023. B.C.'s provincial shopping bag fees still apply.
Sources: City of Vancouver, Cups: single-use items; Government of British Columbia, Single-Use and Plastic Waste Prevention Regulation
Business licences and the Metro West IMBL
The City of Vancouver says all businesses in Vancouver require a licence to operate. The Metro West Inter-Municipal Business Licence is a single licence that allows certain types of businesses to operate in 6 participating cities. If your business is located in one of the other participating municipalities, apply for it through your home municipality.
Sources: City of Vancouver, Apply for a business licence; City of Vancouver, Get a Metro West Inter-Municipal Business Licence (IMBL)
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Common questions
Do Vancouver cafes still have to charge a cup fee?
No. The City of Vancouver repealed its single-use cup by-law, including the minimum 25-cent cup fee, effective May 1, 2023. B.C.'s shopping bag fees still apply, though: at least 25 cents for a new paper bag and $2 for a new reusable bag.
How much PST goes on a Vancouver restaurant bill?
It depends on the line. Food, including restaurant meals, is exempt from B.C.'s PST. Soda beverages are taxable at the general 7% rate, and liquor carries 10% PST. Set separate tax codes on your POS terminals so a mixed bill is taxed item by item.
Does every Vancouver business need a city licence?
The City of Vancouver says all businesses in Vancouver require a licence to operate, and home-based businesses may need one too. If you work in several municipalities, the Metro West Inter-Municipal Business Licence lets certain types of businesses operate in 6 participating cities on one licence.
Can a Vancouver business surcharge credit cards?
Yes. B.C. doesn't ban it, so the Visa and Mastercard limits apply: credit cards only, up to 2.4% or your cost of acceptance if that's lower, 30 days' notice, and disclosure at the door, at the till and on the receipt. For a cafe with small tickets, lowering your processing cost may go over better with regulars than a surcharge.
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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