Credit card processing in New Brunswick

Official languages: what the law covers

New Brunswick is Canada's only officially bilingual province, and that often leads business owners to assume their receipts, terminals and signs must be in both English and French. The provincial Official Languages Act applies to institutions: the Legislative Assembly, government departments, courts, Crown corporations, health authorities, certain municipalities and regional service commissions, and professional bodies with regulatory powers. The Office of the Commissioner of Official Languages for New Brunswick states that private companies do not have to offer service in both official languages. The exception is a private company that provides a service on behalf of the New Brunswick government, which must serve people in the official language of their choice. For an ordinary shop, restaurant or trade business, bilingual receipts and a terminal that can prompt in French are a customer-service choice rather than a legal obligation. Many payment terminals can display cardholder prompts in either language; ask your processor what yours supports. Businesses in regulated sectors or with government contracts should check their own obligations.

HST on card sales

New Brunswick uses the harmonized sales tax. The Canada Revenue Agency lists the HST rate for New Brunswick at 15%. HST is calculated on the taxable price of what you sell, and the full amount, including tax, is what goes through the card terminal. Paying by card does not change the tax owed on the sale. On credit card surcharges, CRA guidance (GI-200) says a surcharge is not subject to GST/HST when it is shown and charged separately from the price of the goods or services and from any other fees, disclosed before the transaction is completed, and the customer can opt out of paying by credit card. If a fee is folded into the price or does not meet those conditions, the treatment may differ, so confirm with your accountant.

Credit card surcharging from New Brunswick

The Financial Consumer Agency of Canada (FCAC) explains that merchants may add a surcharge to credit card transactions everywhere in Canada except Quebec, subject to a maximum surcharge cap of 2.4%. No separate New Brunswick rule restricting surcharges was found in the sources checked; confirm locally before relying on that. FCAC says surcharges and fees must be clearly disclosed before the transaction is completed, and the cardholder must be able to cancel without penalty before authorizing payment. Card networks also have their own requirements, which can include giving your acquirer or the network advance written notice before you start surcharging. FCAC notes that some networks prohibit surcharges on debit or prepaid cards, so confirm with your processor before applying any fee to a debit or prepaid payment. Businesses that sell to customers in Quebec, which borders northwestern New Brunswick, should note that the Quebec exception applies there.

Your rights under the federal payment card code

Card acceptance in New Brunswick is covered by the federal Code of Conduct for the Payment Card Industry in Canada, overseen by FCAC. According to FCAC, your payment service provider must notify you 30 to 60 calendar days before a fee increase or new fee takes effect. If you do not accept the change, you can cancel your agreement without penalty within 70 calendar days of the fee change, and you can also exit without penalty if you did not receive proper notice. Monthly statements must show your effective merchant discount rate and break down interchange, network and other fees by card type. Providers must also tell you if they are not passing on applicable domestic network fee reductions in full, and they must have a clear, accessible complaint process.