Canadian tradespeople have three main ways to get paid: Interac e-Transfer, card payments through a processor, and the older standbys of cheque and cash. Interac e-Transfer is the dominant method for collecting from residential clients. Card acceptance is easy to add through a processor such as Square, Stripe or Moneris, but the fee comes out of your margin. Since 6 October 2022 you are allowed to pass that credit-card fee on to the customer as a surcharge, within strict limits, except in Quebec, where surcharging is prohibited.
Interac e-Transfer
For residential work, Interac e-Transfer is the workhorse. The limits depend on the account:
- Personal accounts have daily limits typically in the range of a few thousand dollars, with weekly and monthly caps set by the bank.
- Business accounts can use Interac e-Transfer for Business, which supports transactions up to $25,000. That $25,000 ceiling is set by Interac; your own bank may set a lower cap and can often raise it on request, so confirm your limit with the bank.
Interac e-Transfer is Canada-only and cannot be used for cross-border payments. For a job that exceeds your e-Transfer limit, you will need a wire transfer, a cheque, or staged instalments.
Card processors
For in-person and mobile card payments, a few processors dominate the Canadian market. Rates change, so verify the current pricing directly with the processor before you sign up:
- Square and Stripe have no monthly fee on their base plans and no setup cost, which makes them the easiest entry point for a tradesperson who only occasionally takes a card. Square is strong for in-person and mobile; Stripe leans toward online and e-commerce.
- Moneris is a Canadian-owned processor widely used by established trades businesses, with physical terminals and broader enterprise features. It typically involves a terminal rental.
- Helcim uses interchange-plus pricing that can work out cheaper at higher volumes.
A typical card fee is a percentage of the transaction plus a small fixed amount, charged differently for tapped or dipped in-person sales versus keyed or online ones. Confirm the exact rate for each before choosing.
The credit-card surcharge rules
Before 6 October 2022, card network rules stopped Canadian merchants from passing credit-card processing fees to customers. After a court-approved class-action settlement, merchants across Canada have been allowed to surcharge Visa and Mastercard credit-card transactions since that date. The rules are tight:
- Two caps, whichever is lower. The surcharge may not exceed 2.4% of the transaction, and it may not exceed your actual cost of acceptance (your effective merchant discount rate for that card). You cannot profit from surcharging; it is cost-recovery only. If your cost of acceptance is below 2.4%, that lower figure is your ceiling.
- Credit cards only. A surcharge may be applied to credit-card payments only. You may not surcharge Interac debit, Visa Debit, Mastercard Debit, or prepaid cards.
- 30 days' notice. You must give 30 days' written notice to your acquirer (your payment processor) before you start surcharging.
- Clear disclosure. Post a sign at every entrance and point of sale stating the surcharge percentage, disclose it online before the payment page, and show it as a separate, clearly labelled credit-card surcharge line on the receipt. It cannot be buried in the total or dressed up as a vague "service fee."
- An alternative and refunds. Let the customer cancel without penalty and offer another way to pay, such as debit, cash or e-Transfer. If you refund a sale, you must refund the surcharge too.
Quebec: surcharging is prohibited
Quebec is the only province where surcharging is explicitly banned. Section 224.1 of Quebec's Consumer Protection Act prohibits a merchant from charging more for paying by credit card. This applies to any transaction by a Quebec customer, including an online sale to a Quebec resident even if your business is based in another province. The Office de la protection du consommateur enforces this and can levy fines. If you work with Quebec clients, do not surcharge them.
Common mistakes
- Surcharging the maximum 2.4% regardless of cost. If your real cost of acceptance is lower, that lower figure is your legal ceiling.
- Surcharging debit or Interac. The rules cover credit cards only. Debit and Interac e-Transfer can never be surcharged.
- Surcharging a Quebec customer. Prohibited under the Consumer Protection Act, even on online sales to Quebec residents from elsewhere.
- Skipping the notice and signage. You must give 30 days' notice to your acquirer, post signs, and label the receipt line clearly.
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