Merchant surcharges, service and convenience fees, and discounts
Surcharges
A surcharge is a fee that a merchant may add to a transaction when a consumer pays by payment card.
Surcharges for credit card payments
As a merchant, you have the option of adding a surcharge to a credit card transaction (except in Quebec). Some payment card network operators (PCNOs) forbid surcharging for prepaid cards.
PCNOs also have different surcharging requirements, such as:
- providing your acquirer or downstream participant and/or your payment card network with advance written notice of your intention to surcharge
- not applying a surcharge that is:
- higher than your actual cost to accept the credit card
- in addition to a service or convenience fee
- a maximum surcharge cap of 2.4%
- displaying information on surcharges at
- the point of sale, both in store and online
- the entrance of physical stores
- on every receipt
You have the option of surcharging at the brand or product level for a specific PCNO’s credit card. If you decide to surcharge at the brand level, the surcharge must be the same across all credit cards for that specific payment card network.
If you decide to surcharge at the product level, the surcharge may differ between categories of credit card. For example, standard vs premium card.
Certain PCNOs don’t allow merchants to surcharge more for their credit cards than for other PCNOs’ credit cards.
You should consult your payment processor regarding these rules.
Surcharges for debit card payments
You should contact your payment processor about your ability to surcharge for accepting debit card payments. Some networks don’t allow merchants to do so.
Service and convenience fees
Certain PCNO rules allow eligible merchants to charge a service or convenience fee for certain types of transactions. Terminology may vary by PCNO. You may verify with your payment processor if you‘re eligible or not. Merchants who choose to charge those fees for credit or debit payments are not allowed to surcharge.
Disclosure of surcharges and fees
You must clearly disclose surcharges and fees to cardholders before a transaction is completed. Cardholders must be able to cancel the transaction without penalty before authorizing payment. They must also be able to pay with an alternative form of payment, like debit or cash.
Discounts
Under the Code of Conduct for the Payment Card Industry in Canada, you may choose to offer discounts for different payment methods and between different payment card networks.
Learn more about the Code of Conduct for the Payment Card Industry in Canada.
For more information on eligible types of transactions, visit the payment card network operators’ websites:
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