Credit Card Surcharging in Canada: Rules by Province

The national rule

Canadian merchants have been able to surcharge Visa credit cards since October 6, 2022, when Visa changed its rules following a court-approved legal settlement, according to Visa Canada's surcharging FAQ for businesses. FCAC now summarizes the position for merchants: you may add surcharges to credit card transactions except in Quebec. Visa says provincial or federal law takes precedence over its rules, so a card network allowing a surcharge does not by itself make it legal where you do business.

The cap: 2.4% or your cost, whichever is lower

FCAC says the maximum surcharge is 2.4% and that a surcharge cannot be higher than your actual cost to accept the credit card. Visa Canada says the surcharge cannot exceed the lesser of the 2.4% cap or the average merchant discount rate you pay for Visa credit card acceptance. Visa lets you surcharge at the brand level (all Visa credit cards) or the product level (certain Visa credit products), but not both, and at the product level the amount must be the same for every card of that product type. Visa also says a surcharge on Visa transactions must not be greater than any surcharge on Amex and PayPal transactions. Mastercard sets its own rules; its Canadian surcharge FAQ did not load when we checked, so check Mastercard's current rules with your processor.

Notice and disclosure

Visa Canada says a merchant must give its acquirer at least 30 days' advance written notice of its intention to surcharge, and contact the acquirer for instructions. FCAC says to give your payment processor advance written notice, clearly disclose surcharges before a transaction is completed, and post notice at the point of sale, in store and online, and at the entrance of physical stores. Visa says the point-of-transaction disclosure must include the exact amount or percentage of the surcharge, a statement that the merchant, not Visa, is charging it and that it applies only to credit transactions, and the surcharge amount on the receipt. Visa also says a surcharge cannot be charged on a refund; when a sale is refunded, the surcharge must be credited back, pro-rated for partial refunds.

Debit, prepaid and Interac

Visa Canada says surcharges are permitted only on Visa consumer and corporate credit cards and are prohibited on Visa debit and prepaid cards. FCAC says some networks forbid surcharging prepaid cards and some do not allow debit surcharges, so ask your processor first. Interac says merchants may not directly apply a surcharge to a cardholder for using Interac Debit; where a surcharge is imposed, it is applied by the acquirer, capped at $0.25, printed on the transaction record, disclosed, and the customer must be able to cancel at no cost. Your terminal or gateway needs to tell credit from debit before any fee is added.

Service fees and convenience fees

FCAC says merchants who charge service or convenience fees are not allowed to surcharge as well. Visa Canada says a merchant that surcharges credit transactions cannot also apply a service fee to Visa credit transactions, that service fees are permitted only in certain circumstances, and that convenience fees are not permitted in Canada. FCAC also notes that under the Code of Conduct for the Payment Card Industry in Canada you may offer discounts for different payment methods and between card networks.

Quebec

The Office de la protection du consommateur (OPC) says a merchant cannot charge fees when a customer uses a debit or credit card to pay, and such fees cannot be added to the price at the time of purchase. The OPC says telling customers at the register, or posting a sign, does not entitle the merchant to charge the fee, and that the advertised price must be the total the consumer pays, with only taxes such as the GST and QST added. If you sell to customers in Quebec from another province, including online, take advice before applying any card fee to those sales.

Rules by province and territory

The table shows what we could confirm from primary sources on September 16, 2026. Only Quebec has a provincial prohibition confirmed in the sources we checked. For every other province and territory, FCAC's national guidance and card network rules apply, and we did not confirm a specific provincial rule on card surcharges; that is not the same as confirming none exists, so check current rules where you trade.

HST and GST on a surcharge

Canada Revenue Agency guidance GI-200 says a credit card surcharge is not subject to GST/HST when it is shown and charged separately from the price of the property or service and from all other fees, is charged to the cardholder solely for accepting the credit card, is imposed by the merchant making the sale, and is subject to payment card network rules. If a card fee does not meet those conditions, the tax treatment may differ, so check with your accountant.

Advertised prices

The Competition Bureau says drip pricing, advertising a low price and then adding mandatory fees so the advertised price cannot be obtained, raises concerns under the Competition Act; the only fixed charges it excludes are those imposed by government on purchasers, such as sales tax. A surcharge the customer can avoid by paying another way is a different situation from a fee every customer must pay, but how you present prices still matters. Keep card fees out of any price that no customer can actually get.

Checklist before you surcharge

1. Confirm you are not surcharging sales to customers in Quebec. 2. Ask your processor what notice it needs, and give Visa's 30 days' written notice; check Mastercard's current rules. 3. Work out your average cost to accept credit cards, and set the surcharge at or below that and at or below 2.4%. 4. Configure terminals and checkout so debit, Interac and prepaid cards are never surcharged. 5. Post notice at the store entrance and the point of sale, and on your checkout page online. 6. Show the surcharge amount on every receipt, and credit it back on refunds. 7. Do not combine a surcharge with a service or convenience fee. 8. Confirm the GST/HST treatment with your accountant. 9. Review the rules at least once a year. This guide is general information, not legal advice, current as of September 16, 2026. CELER Merchants is an independent merchant services agent, not a processor or a law firm. Confirm your plan with your processor and your own counsel before you add a card fee.