Credit card processing and merchant services in Prince Edward Island
Prince Edward Island has more employer businesses per adult than Canada as a whole, and nearly all of them are small. We help Island merchants cut card fees and set up HST correctly.
Card surcharges
Allowed with limitsAllowed on credit cards under Visa and Mastercard rules: up to 2.4% or your cost, 30 days' notice, disclosed at entry, till and receipt.
Sales tax
15% HST
Last checked
October 6, 2026
Per adult, Prince Edward Island has more employer businesses than Canada as a whole: 36.2 for every 1,000 people aged 18 and over at the end of 2024, against 32.7 nationally, by ISED's count. Of the Island's 5,339 employer businesses, 5,246 had fewer than 100 employees. When nearly every business is that small, a tenth of a point on card fees is real money, so start with a cut you may already be entitled to.
Since October 19, 2024, Visa and Mastercard have charged lower interchange to qualifying small businesses. Visa's lower rates apply if your annual Visa sales are under $300,000, and Mastercard's if your annual Mastercard sales are under $175,000. Visa's cutoff moves up to $750,000 on October 24, 2026. On in-store consumer credit cards the target is an annual weighted average of 0.95%. Because the cut is to interchange, it only reaches you if your pricing passes interchange through. On a flat-rate plan, it's worth asking where the savings went.
HST on the Island is 15%, and CRA's rate table shows it rose from 14% on October 1, 2016. The province's Revenue Tax Guide 197 lists point-of-sale rebates on heating oil, children's clothing, children's footwear and books, so those items need their own tax setting in your POS.
Credit card surcharges are allowed on the Island within Visa and Mastercard's limits: credit cards only, 2.4% or your cost of acceptance, whichever is lower, and 30 days' notice. On a $40 sale, a 2.4% surcharge is 96 cents. Whether that's worth a sign at your door is your call, and we'll show you the numbers either way.
If you think the small business rates should be reaching you, send us a statement for a free statement review and we'll check. We work with Island businesses remotely, on interchange-plus pricing with no long-term contract.
What Prince Edward Island merchants should know
15% HST and point-of-sale rebates
Prince Edward Island's HST is 15%: the 5% federal part plus a 10% provincial part. CRA's rate table shows the 15% rate in effect since October 1, 2016, up from 14%.
The province's Revenue Tax Guide 197 lists point-of-sale rebates on heating oil, children's clothing, children's footwear and books. Set each of those up as its own tax category in your POS and online checkout.
Sources: Canada Revenue Agency, Charge and collect the GST/HST: which rate to charge; Government of Prince Edward Island, Revenue Tax Guide 197: Point-of-Sale Rebates for Prince Edward Island HST
Surcharging credit cards in PEI
PEI has no surcharge ban, so Visa and Mastercard's Canadian rules set the limits:
- Credit cards only; their debit and prepaid cards are excluded.
- Up to 2.4% or your cost of acceptance, whichever is lower.
- 30 days' notice: written notice to your acquirer for Visa, and notice to both Mastercard and your acquirer for Mastercard.
- Disclosure at the store entrance and the point of sale, and the amount on the receipt.
The FCAC adds that the customer must be able to cancel without penalty once they see the fee.
Sources: Visa Canada, Surcharging FAQ for businesses (PDF); Mastercard Canada, What merchant surcharge rules mean to you in Canada; Financial Consumer Agency of Canada, Merchant surcharges, service and convenience fees, and discounts
Lower interchange for PEI's small businesses
Since October 19, 2024, qualifying small businesses get lower Visa and Mastercard interchange: an annual weighted average of 0.95% on domestic consumer credit cards in store, and 10 basis points less online. Visa's rates apply under $300,000 in annual Visa sales (rising to $750,000 on October 24, 2026) and Mastercard's under $175,000 in annual Mastercard sales. Non-profits below those thresholds qualify too.
Sources: Department of Finance Canada, Government reduces credit card fees by 27 per cent for small business owners; Visa Canada, Upcoming interchange modifications (September 4, 2026)
Interac debit fees in PEI
Interac's fee page says merchants may not apply a surcharge to Interac Debit directly, and any surcharge fee is capped at $0.25 and applied by the acquirer.
Source: Interac, Understanding fees
Cities we cover in Prince Edward Island
Payment services we provide
Guides worth reading next
All guidesCanada
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.
Canada
PCI compliance in Canada: what merchants need to know
PCI compliance in Canada follows the same standard as the US. Who enforces it, which SAQ fits, how Interac fits in, and when you must report a privacy breach.
Canada
Business expenses the CRA lets you deduct on T2125
Business expenses the CRA lets you deduct on Form T2125 for 2025: where card processing fees go, the 50% meal rule, home office and vehicle limits, records.
Common questions
What is the HST rate in Prince Edward Island?
15%. CRA's rate table shows PEI's HST at 15% since October 1, 2016, when it rose from 14%. The province's Revenue Tax Guide 197 lists point-of-sale rebates on heating oil, children's clothing, children's footwear and books, so those items ring up differently at the till.
Can I surcharge credit cards in PEI?
Yes. Prince Edward Island has no surcharge ban, and the FCAC names Quebec as the only exception. You can add up to 2.4% or your cost of acceptance, whichever is lower, to Visa and Mastercard credit card payments after 30 days' notice, with signs at the entrance and the till and the amount on the receipt. Debit and prepaid cards are excluded.
Am I getting the lower small business interchange rates?
Check two things: your sales volume and your pricing. Since October 19, 2024, Visa's lower rates have applied under $300,000 in annual Visa sales and Mastercard's under $175,000 in annual Mastercard sales. Visa raises its threshold to $750,000 on October 24, 2026. On interchange-plus, the lower interchange shows up on your statement. On a flat rate, it may not. A free statement review will tell you.
Do I charge HST on a credit card surcharge in PEI?
Generally no, as long as the surcharge is shown and charged separately. CRA's info sheet GI-200 says a separately charged credit card surcharge is consideration for a financial service, which carries no GST or HST. Ask your accountant to confirm how your receipts present it.
Can I add a fee for Interac debit on the Island?
Not yourself. Interac's fee page says merchants may not apply a surcharge to Interac Debit directly, and any surcharge fee is capped at $0.25 and applied by the acquirer. Visa and Mastercard debit cards are completely off limits for surcharges.
Other provinces and territories we serve besides Prince Edward Island
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.