Canadian merchants may add a surcharge to credit card transactions — with one hard exception, one hard cap, and a disclosure regime that most programs get wrong. The rules come from two directions at once: the federal government's merchant guidance and each card network's own surcharge rules. Here's the Canadian rulebook, in the order you'd actually implement it.
The rules in 60 seconds (and the Quebec exception)
As a merchant, you may add a surcharge to a credit card transaction except in Quebec, where provincial rules prohibit it. The surcharge must not exceed the lower of the 2.4% cap and your actual cost of accepting that card. You must give your acquirer or network advance written notice before you start. And you must disclose the surcharge at the point of sale (in store and online), at the store entrance, and on every receipt — with the dollar amount shown on the receipt. Some networks also forbid surcharging prepaid cards, so check each network's rule.
The cap: 2.4%, and never above your cost
The 2.4% figure is a ceiling, not a default. Mastercard's rule: your surcharge may not exceed the lower of (i) the 2.4% maximum cap and (ii) your average effective merchant discount rate for that network's credit cards — measured over the preceding one or twelve months, your choice. If your effective Mastercard rate is 1.9%, your maximum surcharge is 1.9%, not 2.4%. The federal guidance says the same thing in plainer language: the surcharge must not be higher than your actual cost to accept the card.
Run the number from a real statement, not from memory: total Mastercard credit fees ÷ total Mastercard credit volume over your chosen lookback period. That's your cap for Mastercard. Repeat per network — each network's rules apply to its own cards.
Brand level vs product level: pick one
You can surcharge at the brand level — one rate across all credit cards of a network (for example, 1.9% on every Mastercard credit card) — or at the product level, where the rate may differ between card categories (for example, 1.5% on standard cards and 2.2% on premium cards). Product-level surcharging must be uniform within the product type: every premium card gets the same surcharge. Brand level is simpler to disclose and harder to get wrong; product level recovers costs more precisely but multiplies your disclosure and calculation burden. Most small merchants should start with brand level.
The compliance procedure, in order
- Confirm eligibility. Not operating in Quebec; credit cards only (never debit — check with your processor, as several networks don't permit debit surcharging); check whether your networks restrict prepaid-card surcharging.
- Calculate your maximum per network. The lower of 2.4% and your average effective discount rate over the last 1 or 12 months, from real statements. Write the number down — it's your legal ceiling.
- Choose brand or product level and set the rate at or below your calculated maximum. Keep it consistent: the same rate for every card in the chosen group.
- Notify in writing, in advance. Give your acquirer (or downstream participant) and the card network advance written notice of your intent to surcharge before you collect the first one. Keep the confirmation on file.
- Post disclosures. Clear surcharge notices at the store entrance, at the point of sale (in store and online), stating the surcharge amount. A customer should know before they commit to pay.
- Itemize every receipt. The surcharge appears as a separate line item with its dollar amount on every receipt, in store and online.
- Never stack it. The surcharge must not be charged in addition to a service or convenience fee on the same transaction — one or the other.
What success looks like: mystery-shop your own business. The notice is visible at the entrance, the disclosure appears before payment (including in the online checkout flow), and the receipt shows the surcharge as its own line with the dollar amount. Your acquirer confirms the written notice is on file. The rate on the sign matches the rate on the receipt matches your calculated maximum. If all four hold, the program survives an audit.
What surcharging cannot do
It cannot exceed 2.4% or your actual cost, whichever is lower. It cannot apply to debit cards. It cannot ride on top of a service or convenience fee. It cannot operate in Quebec. And it cannot be applied arbitrarily — the rate must be consistent within the brand or product level you chose, disclosed the same way to every customer. Break any of these and you're not running a surcharge program; you're running a compliance incident.
FAQ
What is the maximum credit card surcharge in Canada?
2.4% — and never more than your actual cost of accepting the card. If your effective rate is 1.9%, your cap is 1.9%. The 2.4% is a ceiling set by the card networks' Canadian rules, not a recommended rate.
Do I have to notify anyone before surcharging?
Yes. You must give your acquirer or downstream participant and/or the card network advance written notice of your intent to surcharge before you start. Keep the confirmation — it's your proof of compliance.
Can I surcharge in Quebec?
No. Quebec's provincial rules prohibit credit-card surcharging, and the federal merchant guidance carves Quebec out explicitly. If you operate in multiple provinces, the Quebec locations must not surcharge.