Credit card processing and merchant services in London, ON
Opening or growing a business in London? The merchant agreement you sign now can follow you for years. Here's what to check, plus the local tax rates your payment setup needs.
London's census metropolitan area grew 10% between 2016 and 2021, to 543,551 people, and the city itself counted 422,324, according to Statistics Canada. If you're opening a business into that growth, the merchant agreement you sign in your first month can follow you for years, so read it closely.
Look first at how you get out. We don't use long-term contracts or cancellation fees, but if an agreement in front of you has them, find the clause and the dollar amount before you sign. Then look at how fees can change. Under the Code of Conduct for the Payment Card Industry in Canada, your processor has to give you 30 to 60 calendar days' notice of a new or higher fee, and you can leave without penalty if you give notice within 70 days after it takes effect. Last, ask whether interchange is passed through at cost or folded into a flat rate. Our guide to interchange-plus vs flat-rate pricing explains the difference.
Retailers have a tax detail to set up as well. Ontario rebates the 8% provincial part of the HST at the till on children's clothing and footwear and on books, so a children's clothing store rings those items up at 5%. And if you rent rooms, London's Municipal Accommodation Tax is 5%, between Hamilton's 4% and Toronto's 6%.
Surcharging Visa and Mastercard credit cards is allowed in Ontario within the 2.4% cap. Already taking cards? Start with a free statement review. Opening soon? Talk to us before you sign anything, and keep our Ontario page handy for the provincial rules.
Payment services we provide
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Common questions
What should I check before signing a merchant agreement in London?
Check the term and any cancellation fee, how fees can change, and whether interchange is passed through at cost. The Code of Conduct requires merchant agreements to include a cover page with prescribed information, so ask for it and read it first. If you already take cards, a free statement review shows what you pay now.
Can my processor raise fees without warning?
No. Under the Code of Conduct for the Payment Card Industry in Canada, your processor must notify you 30 to 60 calendar days before a new or higher fee takes effect. If that happens, you can end the agreement without penalty, provided you send notice within 70 calendar days after the change takes effect.
What is London's Municipal Accommodation Tax?
The City of London says hotels, motels and short-term accommodation rental providers must pay a 5% Municipal Accommodation Tax. Give the tax a line of its own in your booking and payment systems. Rates differ across Ontario, with Hamilton at 4% and Toronto at 6%, so operators with several properties need a setting per city.
Do children's clothes and books get the HST rebate in London stores?
Yes. Ontario's point-of-sale rebate removes the 8% provincial part of the HST on children's clothing and footwear and on books, so you collect only the 5% federal part. Put those products in their own tax category in your POS so the rebate applies automatically.
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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