Credit card processing and merchant services in Oakville, ON
In Oakville, as everywhere in Ontario, 2.4% is only the ceiling on a credit card surcharge. Your real limit is your own cost of acceptance, and last year's statements tell you what it is.
Ask an Oakville owner how much they can add to a credit card bill and you'll usually hear 2.4%. That's the ceiling. Visa and Mastercard cap a Canadian credit card surcharge at the lesser of 2.4% or your own average cost of acceptance, which Visa calls your merchant discount rate. If cards cost you less than 2.4%, the surcharge has to shrink to match.
Your statements give you the number. Say a year of Visa credit sales came to $150,000 and you paid $3,150 in processing fees on them. Divide the fees by the sales and you get 2.1%, so 2.1% is the most you could add to a Visa credit payment. Do the same sum for Mastercard on its own, and redo both each year, because your cost moves with your card mix and your pricing. On interchange-plus pricing, each card type's cost is listed separately, so you can see what drives your average.
Everything else follows the provincial rules. You can surcharge credit cards only, never Visa or Mastercard debit or prepaid cards. Give 30 days' notice before you start, and disclose the fee at your entrance, at the till and on the receipt. Our surcharging program covers setup and disclosure.
Oakville's hotels, inns and bed and breakfasts have a second percentage to set up. The Town has applied a 4% Municipal Accommodation Tax since January 1, 2019, to stays of less than 30 consecutive days, and it covers lodging sold online as well as at the front desk.
The 2021 Census put Oakville at 213,759 residents, a 10.3% rise over 2016. Send us a recent statement for a free statement review and we'll work out your surcharge limit with you. The Ontario page has the province-wide rules and sources.
Rules that matter in Oakville
Oakville's 4% Municipal Accommodation Tax
The Town of Oakville applies a mandatory 4% Municipal Accommodation Tax, effective January 1, 2019, to accommodations of less than 30 consecutive days. It covers hotels, motels, motor hotels, lodges, inns, resorts, bed and breakfasts and other lodging, including lodging sold online.
Payment services we provide
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Common questions
How do I work out the most I can surcharge in Oakville?
Take what you paid in processing fees on one card brand's credit sales over a period and divide it by those sales. That's your average cost of acceptance for the brand, and your surcharge can't go above it or above 2.4%, whichever is lower. For example, $3,150 in fees on $150,000 of Visa credit sales works out to 2.1%, so 2.1% is your Visa limit.
Does Oakville's accommodation tax apply to a five-week stay?
No. The Town of Oakville applies its 4% Municipal Accommodation Tax to accommodations of less than 30 consecutive days at hotels, motels, inns, lodges, resorts and bed and breakfasts, including stays sold online. A booking of 30 days or more falls outside it, so set your booking system to leave the tax off long stays.
Who has to hear from me before I start surcharging?
Your acquirer, for Visa, and both Mastercard and your acquirer, for Mastercard, at least 30 days before your first surcharged sale. Visa wants that notice in writing. Once the 30 days are up, post the surcharge at your entrance and at the point of sale and print the amount on every receipt. Our surcharging program covers setup and disclosure.
Is raising prices a better option than a surcharge?
It depends on your customers. A price increase needs no notice, no signs and no separate receipt line, and it covers every payment method, debit included. A surcharge lands only on credit card users, but they see it on every bill. Our guide to dual pricing vs surcharging compares the options. Lowering what you pay to accept cards helps whichever way you go.
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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