Fees, pricing models and 2026 rules
Credit card surcharge rules in Canada: the cap, disclosure and the Quebec exception
When a Canadian merchant may add a credit card surcharge, the 2.4% maximum, the cost-of-acceptance limit, notice and signage rules, debit and Quebec exceptions.
Outside Quebec, Canadian merchants may add a surcharge to credit card payments, under rules Visa and Mastercard introduced on 6 October 2022 following the settlement of merchant class actions. The Financial Consumer Agency of Canada (FCAC) summarises the conditions: the surcharge may not exceed 2.4%, may not be more than your actual cost of accepting that credit card, must be disclosed before payment (at the store entrance, at the point of sale in store and online, and on every receipt), and the customer must be able to cancel and pay another way, such as debit or cash. You usually must notify your processor or the network in advance. Surcharges are not allowed in Quebec, and debit and some prepaid cards follow different rules.
This guide belongs to the fees and rules section. It reflects FCAC's merchant guidance as checked in October 2026; network rules can change, so confirm with your processor before you start.
The conditions at a glance
| Condition | What applies |
|---|---|
| Which payments | Credit cards. Some networks prohibit surcharging prepaid cards. Debit: check with your processor; some networks do not allow it |
| Maximum | 2.4% (FCAC) |
| Cost limit | The surcharge cannot exceed your actual cost to accept the credit card |
| Brand or product level | Same surcharge for all of a network's credit cards (brand level), or different by product category such as standard vs premium (product level) |
| Cross-network | Some networks do not let you surcharge their cards more than other networks' cards |
| No stacking | No surcharge on top of a service or convenience fee |
| Advance notice | Network rules may require written notice to your acquirer or processor and/or the network |
| Disclosure | At the point of sale (in store and online), at physical store entrances, and on every receipt; clearly before the transaction is completed |
| Customer choice | Cardholder must be able to cancel without penalty before authorising and pay another way |
| Quebec | Not allowed |
Working out your maximum surcharge
Your surcharge for a card cannot be more than what that card costs you to accept, and never more than 2.4%. Your cost of acceptance is usually calculated from your statements as the fees for that card brand (or product) divided by the sales on it.
Worked example (illustrative). A furniture store's last twelve months of Visa credit statements show $180,000 of sales and $3,330 of related processing fees. Cost of acceptance: $3,330 ÷ $180,000 = 1.85%. The store may surcharge Visa credit at up to 1.85%, not 2.4%. On a $1,200 sofa, the surcharge is $1,200 × 1.85% = $22.20, total $1,222.20.
Use the card fee calculator to find your fee on a month of sales, then divide total fees by sales to get your cost.
Steps before you start surcharging
- Check your location. If you sell in Quebec or to Quebec consumers, see the Quebec section below.
- Ask your processor what notice it and the networks require, how much notice, and whether your terminal or gateway can add the surcharge as a separate line.
- Calculate cost of acceptance per network (and per product if you surcharge at product level).
- Set up signage at entrances and at the till, and disclosure online before checkout.
- Configure receipts to show the surcharge amount separately.
- Train staff to tell customers before payment and to offer debit or cash.
- Review cost of acceptance regularly, especially after rate changes.
Debit and prepaid cards
The 2022 surcharging rules concern credit cards. FCAC says some networks do not allow surcharging debit cards and advises checking with your processor; some networks also prohibit surcharging prepaid cards. Interac debit is a separate network with its own rules. Because Interac debit is usually inexpensive for merchants, adding a debit fee also risks customer complaints for little gain. See Interac debit fees.
Service and convenience fees
Some network rules allow eligible merchants, in certain transaction types, to charge a service fee or convenience fee (terminology varies). Eligibility must be confirmed with your processor. If you charge such fees on credit or debit, you cannot also surcharge.
Quebec
Credit card surcharges are not allowed in Quebec. Quebec's Consumer Protection Act requires merchants to charge consumers no more than the advertised price (s. 224(c)), which rules out adding a card surcharge at the till; the Office de la protection du consommateur (OPC), which enforces that Act, states that merchants may not charge fees to consumers who pay by debit or credit card, and that a sign or verbal warning does not make such a fee lawful. Businesses with locations in several provinces, or online businesses selling to Quebec consumers, should set up their systems so that no surcharge is applied to Quebec consumer sales, and should check the OPC's guidance and get legal advice if unsure.
Discounts instead of surcharges
Under the Code of Conduct, you may offer discounts for different payment methods and different discounts between card networks. A "2% off for debit or cash" offer is a lawful alternative to a surcharge, including in Quebec, as long as the advertised price is respected. Discounts tend to be easier on customer relations. See merchant rights under the Code.
Advertising and the total price
Under the federal Competition Act, advertising a price that cannot be attained because of fixed obligatory charges (drip pricing) can be misleading. A surcharge that customers can avoid by paying with debit or cash is different from a mandatory fee, but your prices and checkout should still make the surcharge clear before payment. If in doubt, read the Competition Bureau's guidance or ask a lawyer.
FAQ
Can I surcharge only premium cards?
Network rules may allow surcharging at product level, so a premium card category could carry a different surcharge from standard cards, within the cap and your actual cost for that category. Confirm with your processor.
Can I set a minimum purchase for cards instead?
That depends on network rules and your processor agreement. Ask before posting a "minimum purchase" sign; some networks restrict minimums.
What happens if I surcharge without following the rules?
You may breach your processing agreement and network rules, which can lead to fees, required refunds or termination, and, in Quebec, consumer protection enforcement. Customers may also complain to your processor or the network.
Sources
- FCAC: Accepting card payments — "Merchant surcharges, service and convenience fees, and discounts"
- Financial Consumer Agency of Canada — Code of Conduct (discounts)
- Office de la protection du consommateur — Quebec Consumer Protection Act and advertised prices
- Competition Bureau Canada — drip pricing and price representations
- Justice Laws Website — Competition Act
