Every time a customer taps a Visa or Mastercard at your counter or pays on your website, part of that sale goes to the cardholder’s bank. That cost is called interchange, and it is the largest piece of most card processing bills. This guide covers current interchange rates in Canada, the Visa and Mastercard changes taking effect in October 2026, and practical ways to keep your Canada interchange fees under control.
Card networks such as Visa and Mastercard set interchange rates in Canada. The fee goes to the bank that issued the customer’s card. Qualifying small businesses pay an annual weighted average interchange rate of 0.95% on domestic consumer credit sales made in store. Premium and business cards can carry rates above 2%. On October 24, 2026, Visa lowers small merchant rates both online and in store, brings an optional authentication program to Canada, and raises the Small Merchant Program volume limit to CAD $750,000.
What Are Interchange Rates?
Visa sets interchange, and the merchant’s financial institution (the acquirer) pays it to the cardholder’s financial institution (the issuer). Consumers do not pay interchange, and Visa says interchange is not revenue to Visa in Canada. Mastercard sets its own default interchange rates and states that it does not earn revenue from interchange either. It earns revenue from the fees it charges its financial institution customers for processing and other payment services.
Why does the issuing bank collect this fee? The issuing bank extends credit to the consumer, which makes the sale possible, and it takes on the risk that the consumer will not pay. Issuers also say these fees help cover the costs and risks of issuing cards, including fraud.
You still feel the cost. Your provider passes interchange to you, adds network fees, and then adds its own markup.
How a Card Payment Moves
- Your customer taps, inserts, or types in their card details.
- Your acquirer sends the payment to the card network.
- The network routes it to the issuing bank, which approves or declines it.
- The issuer collects interchange. The network collects its own fees.
- Your payment processor deposits the rest into your account, minus its markup.
Key Terms in Plain Language
| Term | What it means |
| Issuer (issuing bank) | The cardholder’s bank, which gave your customer the card |
| Acquirer (merchant’s bank) | The financial institution that lets your business accept card payments |
| Merchant service provider | A company, such as a payment processor, that sets up and supports your card acceptance |
| Card present | The customer pays in person with a physical card, by chip or tap |
| Card not present (CNP) | The customer pays online, by phone, or through a keyed entry |
| Tokenized | A secure stand-in code replaces the real card number |
| DCAP | Digital Commerce Authentication Program. An optional Visa program that launched in the United States in April 2026 and reaches Canada on October 24, 2026. It lowers interchange on qualifying online consumer credit payments when the merchant sends enhanced transaction data. Tokenization is not required to qualify, but it roughly doubles the net benefit |
| Assessment fees | Fees the card brand charges on top of interchange, also called association fees or network fees |
| Merchant discount rate | Your total rate to accept cards, which bundles interchange, network fees, and provider charges |
| Effective rate | Your total card fees divided by your total card sales |
Interchange Rates in Canada: The 2026 Snapshot
Canada’s rates have shifted over the past decade. Here is how the averages have changed.
| Year | Commitment | Who it covers |
| 2015 | Visa and Mastercard average domestic consumer interchange of 1.50% | All businesses |
| 2020 | Average interchange lowered to 1.40% | All businesses |
| 2024 | Annual weighted average of 0.95% on in-store consumer credit sales | Small business merchants under the sales limits |
In November 2014, Visa and Mastercard each committed to an average annual effective rate of 1.50% on domestic consumer interchange, which took effect in April 2015. This was an average, not a cap on every card. A 2018 agreement then lowered the average to 1.40%, effective 2020. Visa Canada’s interchange page states that it continues to adhere to a voluntary commitment with the Department of Finance managing domestic consumer credit interchange to an average level of 1.40%, verified annually by an independent third party.
Here is where things stand today:
- Small business relief is in place. Since October 19, 2024, small businesses under the Visa and Mastercard sales thresholds have paid lower credit card acceptance costs.
- In-store rates dropped the most. Eligible businesses pay an annual weighted average of 0.95% on in-store domestic consumer credit sales, and online consumer credit rates dropped by 10 basis points.
- The savings add up. The federal government expects the cuts to save eligible small businesses about $1 billion over five years.
- Free fraud tools come with the deal. Visa and Mastercard agreed to give qualifying small businesses free access to online fraud and cybersecurity resources.
- More changes arrive in October 2026. Visa trims rates both online and in store and brings a new optional authentication program to Canada, and Mastercard adds a new network fee.
Key 2026 Dates for Canadian Merchants
| Effective date | What changes | Who it affects |
| October 19, 2026 | Mastercard adds the Network Access and Brand Usage (NABU) fee, which replaces the Acquirer Clearing Fee | Most businesses that accept Mastercard. Account status inquiries and Mastercard B2B Wholesale Program transactions are excluded |
| October 24, 2026 | Visa lowers small merchant online and in-store rates, brings the Digital Commerce Authentication Program to Canada, and raises the program volume limit | Small businesses that accept Visa |
| October 24, 2026 | Visa raises the Business Credit Standard rate | Businesses that accept Visa business cards |
| October 24, 2026 | Mastercard raises Wholesale Travel rates and adds Flex Program rates | B2B and travel businesses |
Visa Canada Interchange Rates: October 24, 2026 Changes
Visa’s update touches domestic consumer and business credit transactions and brings DCAP to Canada. Most small merchant rates, online and in store, fall by 0.07 to 0.10 percentage points. Visa Infinite Plus rates fall by 0.15 points. One rate goes up: Visa Business Credit Standard.
Visa Small Merchant Card Not Present Rates
The table shows the new rate first and the current rate in brackets. DCAP is new to Canada, so those two columns have no prior Canadian rate.
| Card tier | CNP | CNP, tokenized | CNP, DCAP | CNP, DCAP and tokenized |
| Core (Classic, Gold, Platinum) | 1.20% (was 1.30%) | 1.15% (was 1.25%) | 1.10% (new) | 1.05% (new) |
| Visa Infinite | 1.45% (was 1.55%) | 1.40% (was 1.50%) | 1.35% (new) | 1.30% (new) |
| Visa Infinite Plus | 2.05% (was 2.20%) | 2.00% (was 2.15%) | 1.95% (new) | 1.90% (new) |
| Visa Infinite Privilege | 2.20% (was 2.30%) | 2.15% (was 2.25%) | 2.10% (new) | 2.05% (new) |
Look across any row, and you will spot a pattern. Tokenized payments cost 0.05 points less than basic online payments. Payments that meet Visa’s DCAP criteria cost 0.10 points less. The two discounts stack, so a payment that is both tokenized and DCAP-qualified lands 0.15 points below the basic online rate.
Those are interchange figures, and the net benefit is smaller. A separate Enhanced Data Program fee of 0.05 percentage points applies to DCAP transactions. That makes DCAP on its own worth about 0.05 points net, and DCAP combined with network tokens worth about 0.10 points net. The practical takeaway: if you adopt DCAP without tokenizing, the fee cancels half the incentive. Tokenization is where the economics land.
Other Visa Infinite Plus Rate Changes
| Program | CNP | CNP, tokenized | CNP, DCAP | CNP, DCAP and tokenized |
| Performance Program | 2.10% (was 2.25%) | 2.05% (was 2.20%) | 2.00% (new) | 1.95% (new) |
| Card Not Present (outside the small merchant program) | 2.15% (was 2.30%) | 2.10% (was 2.25%) | 2.05% (new) | 2.00% (new) |
Visa also cuts the Infinite Plus Standard rate from 2.35% to 2.20%.
Visa’s In-Store and Industry Program Cuts
The same October 24 notice lowers card-present and industry rates. If you sell in person or run a restaurant, drug store, grocery or gas business, these matter more to you than the online table above.
| Rate program | Core | Visa Infinite | Visa Infinite Plus | Visa Infinite Privilege |
| Small Merchant Electronic Card Present | 0.70% (was 0.77%) | 0.89% (was 0.99%) | No change (1.05%) | 1.70% (was 1.80%) |
| Industry Program – Everyday Needs | No change | 1.10% (was 1.20%) | No change | 1.85% (was 1.95%) |
| Industry Program – Gas | No change | 1.24% (was 1.34%) | No change | 1.85% (was 1.95%) |
| Industry Program – Grocery and Food Retail | No change | 1.05% (was 1.15%) | No change | 1.85% (was 1.95%) |
Visa Business Credit
The Visa Business Credit Standard rate rises from 2.00% to 2.15%. If you sell to other businesses, check how many of your customers pay with business cards.
A Higher Sales Limit for Visa’s Small Merchant Program
Visa is raising the maximum annual volume threshold for its Small Merchant Interchange Program. The limit moves from CAD $300,000 to CAD $750,000 in total net VisaNet retail sales volume. The change covers the Small Merchant Electronic Card Present program as well as the Card Not Present programs, across Core, Visa Infinite, Visa Infinite Plus, and Visa Infinite Privilege cards.
Keep these details in mind:
- You qualify with each network on its own. Small businesses must meet each credit card network’s criteria separately.
- The threshold counts all your Visa volume. Visa defines it as total net VisaNet retail sales volume. Moneris reads that as Visa credit, debit and prepaid volume together, not credit alone, so a merchant with heavy Visa Debit volume can cross CAD $750,000 without processing anywhere near that much on credit.
- Mastercard’s limit is lower. Mastercard’s lower fees apply to businesses with annual Mastercard credit card volume below CAD $175,000 during the applicable qualifying period. The October notice does not list a change to that limit.
- Surcharging can cost you eligibility. Merchants that surcharge do not qualify for the Visa small merchant interchange program.
- Qualification is reassessed every year. Visa and Mastercard use a 12-month qualifying window running October 1 to September 30, and a merchant can be removed from the program at any time, with or without notice, for failing the criteria.
- Losing eligibility can cost you retroactively. Moneris states in its published program terms that if a merchant is found ineligible following an assessment, interchange savings already provided may be reversed, and it reserves the right to charge the merchant the difference between the reduced rates applied and the standard rates that should have applied during the period of ineligibility. Check whether your own agreement carries the same provision.
Mastercard Canada Interchange Rates and Fees: October 2026 Updates
Mastercard Canada publishes two sets of rates for Canadian merchants. Canadian rates apply when a customer uses a Canada-issued card, and interregional rates apply when a customer uses a card issued outside Canada.
The New NABU Fee
Starting October 19, 2026, Mastercard charges a Network Access and Brand Usage fee on domestic and cross-border authorizations and authorization reversals. It replaces the Acquirer Clearing Fee. Moneris publishes the pass-through rates as follows.
| Billing event | Mastercard base amount (USD) | Rate published by Moneris (USD) |
| Domestic authorization | $0.0195 | $0.022035 |
| Interregional authorization | $0.0295 | $0.033335 |
| Domestic authorization reversal | $0.0098 | $0.011074 |
| Interregional authorization reversal | $0.0148 | $0.016724 |
The published figures are the Mastercard base amounts plus 13%, an uplift acquirer notices attribute to taxes tied to Bill C-47. Bill C-47 clarified that services from payment card network operators generally stay subject to GST/HST. Mastercard sets these fees in US dollars, and Moneris converts them to Canadian dollars where applicable.
The NABU fee is an assessment fee, not interchange. It still shows up on your statement, so it helps to know the name. Interregional authorizations cost more than domestic ones, which is one reason cross-border fees add up for businesses that serve visitors or sell abroad.
Two things to watch alongside it. First, the retired Acquirer Clearing Fee had a cheaper tier for small tickets, at roughly USD $0.0057 on transactions of $25 or less. NABU is a single flat amount with no small-ticket tier, so if your average ticket is low, expect this swap to cost you more rather than less.
Second, and larger: on July 20, 2026, Mastercard’s cross-border assessment on transactions settled in Canadian dollars rose from 0.60% to 1.00% published, or roughly 0.678% to 1.13% as passed through. For a merchant serving tourists or selling abroad, that single change costs far more than NABU does.
Mastercard Wholesale Travel Program Rates
On October 24, 2026, Mastercard raises rates on its existing Wholesale Travel products and adds new ones. These rates apply to commercial B2B card products settled with virtual Mastercard account numbers. The increases are steep: Products 20, 21 and 22 all sit at 2.00% today and move to 2.70%, 2.60% and 2.50%.
| Product | Rate | Product | Rate |
| B2B Product 20 | 2.70% | B2B Product 29 | 2.10% |
| B2B Product 21 | 2.60% | B2B Product 30 | 2.20% |
| B2B Product 22 | 2.50% | B2B Product 31 | 2.30% |
| B2B Product 24 | 0.50% | B2B Product 32 | 2.40% |
| B2B Product 25 | 0.60% | B2B Product 33 | 2.80% |
| B2B Product 26 | 0.70% | B2B Product 34 | 2.90% |
| B2B Product 27 | 0.80% | B2B Product 35 | 3.00% |
| B2B Product 28 | 0.90% |
Read this table with care. The October notice publishes two overlapping rate sets for several of the same product codes. Products 29 through 32 appear at both the figures above and at a flat 2.00%, and Products 33 through 35 appear at both the figures above and at 2.70%. Which one applies depends on the product code and program your supplier is enrolled in. These October figures also come from acquirer notices rather than Mastercard’s published Interchange Programs document, which still shows Products 20, 21 and 22 at 2.00%. Confirm the applicable code with your provider before you budget off any single number.
Mastercard Flex Program Rates
Mastercard also adds new commercial credit rates for its Flex Program on October 24, 2026. The rates run from 0.35% to 2.00%, with a large gap in the middle: Product 26 sits at 0.45% and Product 27 jumps to 1.65%.
| Product | Rate | Product | Rate |
| Commercial B2B Product 24 | 0.35% | Commercial B2B Product 30 | 1.80% |
| Commercial B2B Product 25 | 0.40% | Commercial B2B Product 31 | 1.85% |
| Commercial B2B Product 26 | 0.45% | Commercial B2B Product 32 | 1.90% |
| Commercial B2B Product 27 | 1.65% | Commercial B2B Product 33 | 1.95% |
| Commercial B2B Product 28 | 1.70% | Commercial B2B Product 34 | 2.00% |
| Commercial B2B Product 29 | 1.75% |
Debit vs. Credit Transactions: How Interac Debit Compares
Interac is one of Canada’s major payment card networks, alongside Visa and Mastercard. Interac prices most in-person debit as a per-transaction amount rather than a percentage of the sale, which is the key difference from credit card interchange.
It is not one flat fee, though. Interac’s published schedule tiers contactless fees by merchant tier and by transaction size, running from $0.020 to $0.035 per transaction under $100, and $0.055 per transaction between $100.01 and $250. Interac eCommerce through Apple Pay and Google Pay is priced in basis points rather than cents, at roughly 0.55% to 0.60%.
That still matters for everyday in-person purchases. At a 1.20% credit rate, a $50 sale costs $0.60 in interchange and a $200 sale costs $2.40. On Interac, that same $200 in-person sale carries a per-transaction fee measured in cents. For businesses with larger in-person tickets, steering customers to Interac debit can lower total fees. The advantage does not carry over to Interac online payments, which are priced as a percentage.
One caveat worth remembering: Visa Debit volume counts toward the CAD $750,000 Small Merchant Program threshold. Steering customers to debit lowers your per-sale cost but does not protect your small merchant eligibility on the Visa side.
Why Interchange Rates in Canada Vary
Two sales of the same amount can cost you different fees. These factors explain why.
- Card type. Interchange is higher on premium cards that offer rewards, cash back, and other perks.
- In person vs. online. Online and phone payments carry higher rates because they pose a higher security risk than in-person payments, where the merchant sees the customer use the card.
- Online payment method. Visa’s October table shows lower online rates for tokenized payments and payments that meet DCAP criteria.
- Industry programs. Visa’s Industry Program covers gas, grocery and food retail, everyday needs, and utilities businesses within set merchant categories. Its Everyday Needs category targets places where Canadians shop most often, such as drug stores, dry cleaners, variety stores, taxis, and restaurants.
- Recurring and charity payments. Separate rates apply to recurring payments and to charity and non-profit payment processing. Visa’s recurring payments category applies when the cardholder agrees to let the merchant charge their card on a regular schedule.
- Transaction amount. Because most credit interchange is a percentage, bigger sales mean bigger dollar fees. At a 2.00% rate, a $10 sale costs $0.20 and a $1,000 sale costs $20. Mastercard also runs a Large Ticket category for transactions over CAD $10,000, though it applies only to Mastercard’s Large Market commercial products, meaning Fleet, Purchasing, Multi and Corporate cards, not to ordinary consumer sales.
- Business size. Small merchant programs give eligible businesses lower rates than standard schedules.
- Consumer vs. commercial cards. Business and B2B cards often sit at the top of the range. Visa Business Credit Standard reaches 2.15% in October, and one Mastercard Wholesale Travel rate reaches 3.00%.
How Interchange Fits Into Your Total Processing Cost
Interchange is the largest of several charges bundled into your merchant discount rate. The other charges pay your provider and the card network. Your monthly bill has three layers:
- Interchange, which goes to the card issuer
- Assessment fees, such as Mastercard’s new NABU fee and cross-border fees
- Provider markup, which your merchant service provider sets
Your pricing model decides how clearly you see each layer. Interchange-plus pricing separates network fees from provider markups. Tiered pricing hides interchange and assessment fees inside vague “qualified” and “non-qualified” rates, which makes hidden fees and rate cuts harder to spot.
That matters in Canada. When the small business cuts started in 2024, the Canadian Federation of Independent Business (CFIB) warned that some payment processing companies did not plan to pass the savings on.
Illustrative Example: What the October Changes Mean in Dollars
Say an online shop brings in CAD $120,000 a year on Visa Infinite cards and qualifies for the small merchant program.
- At today’s basic CNP rate of 1.55%, interchange on those sales comes to $1,860.
- At the new rate of 1.45%, it drops to $1,740. That is $120 less per year.
- If the same shop’s payments also qualify as tokenized and DCAP, the rate falls to 1.30%. Interchange drops to $1,560, which is $300 less than today on interchange alone, or roughly $240 once the 0.05-point Enhanced Data Program fee is applied.
Now flip it. A wholesaler that takes CAD $40,000 a year on Visa Business cards at the Standard rate pays $800 today. After October 24, it pays $860.
These figures cover interchange and the DCAP fee only. They do not include other assessment fees or provider markup.
Your Rights Under Canada’s Code of Conduct
The Code of Conduct for the Payment Card Industry in Canada protects merchants. Before October 30, 2024, it was called the Code of Conduct for the Credit and Debit Card Industry in Canada. Most parts of the revised Code took effect on October 30, 2024, with the remaining parts taking effect on April 30, 2025.
The Financial Consumer Agency of Canada (FCAC) monitors how payment card network operators implement the Code. Merchants can file complaints directly with the FCAC at any stage of the complaint process.
Under the Code:
- Your provider must give you at least 30 and no more than 60 days’ notice before a new fee or a fee increase takes effect, and before any reduction in network fees that it does not pass on to you in full.
- You can cancel your agreement without penalty within 70 calendar days after the effective date of the change. If your provider fails to give you notice inside the 30 to 60 day window, you can cancel at any time.
- That right also applies if your acquirer does not fully pass on savings from lower interchange rates.
- The cancellation right does not apply to fee increases made in accordance with pre-determined schedules, such as those based on merchant sales volume or the end of a promotional offer, provided those schedules are included in your merchant agreement. That last condition is the one to check. If the schedule is in your agreement, you have no cancellation right for increases made under it. If it is not, you do. This matters here, because small merchant program rates are themselves set out as a pre-determined schedule.
- Your monthly statement must show your effective rate for each card type, plus all fees and volumes.
- You can choose which card payment methods to accept.
The October 2026 changes are a good reason to read every notice closely. When one arrives, compare it with your next statement and check whether the change carries a cancellation right.
Credit Card Surcharging in Canada
Card network rules have allowed Canadian merchants to surcharge credit card payments since October 6, 2022. The rules are strict:
- Cap: You can only surcharge what you pay, up to a maximum of 2.4%.
- Location: Quebec’s Consumer Protection Act does not allow surcharges on consumers.
- Notice: You must give 30 days’ notice to Visa, Mastercard, your provider, and your customers before you start.
- Disclosure: You must tell the customer about the surcharge before the payment is complete, and they must have a chance to opt out of paying by credit card.
- Credit only: You cannot surcharge Interac debit transactions.
Before you add a surcharge, weigh it against your small merchant eligibility. A surcharge can recover costs, but it can also remove you from Visa’s lower small merchant rates. Our guide to credit card processing breaks down surcharging, dual pricing, and cash discount models.
How to Lower Your Interchange Costs in Canada
Follow these steps to cut what you pay.
- Pull your last three statements. Find your effective rate for each card type. The Code of Conduct requires your provider to show it.
- Check your small merchant status. Compare your total annual Visa volume, meaning credit plus debit plus prepaid, to the new CAD $750,000 limit. Compare your Mastercard credit card volume to the CAD $175,000 limit.
- Ask about tokenization and DCAP. If you sell online, ask your provider whether your checkout qualifies for Visa’s lower tokenized and DCAP rates, and what net benefit remains after the Enhanced Data Program fee. Tokenizing is what makes DCAP worth adopting.
- Encourage debit for in-person sales. Per-transaction Interac fees can cost less than percentage-based credit fees on larger in-person tickets.
- Use the free fraud tools. Qualifying small businesses can access free online fraud and cybersecurity resources from Visa and Mastercard.
- Confirm the savings reach you. Ask your provider in writing whether it passes interchange cuts through in full.
- Clean up your authorizations. Mastercard’s NABU fee applies to each authorization and each reversal. Mastercard also charges network fees on certain non-compliant transactions, such as excessive authorizations.
- Think twice before surcharging. Run the numbers on surcharge revenue against the small merchant rates you could lose.
- Read every fee notice. Your cancellation window runs 70 days from the effective date of the change, and it does not apply to increases made under a pre-determined schedule in your agreement. Mark the date when a notice arrives.
- If you are new to Mastercard, check the Underpenetrated Verticals Program. Mastercard is running a limited-time program from May 1, 2026 through July 31, 2027 offering discounted interchange to merchants newly accepting Mastercard in selected categories, including charities, religious organizations, schools, child care, dentists, nursing facilities, contractors and trades, insurance, real estate rentals, legal services and consulting. Core card-present EMV drops from 0.92% to 0.42% under the program. It applies only to merchants that do not already accept Mastercard, so the window closes the moment you board.
Pros and Cons of Interchange-Plus Pricing
| Pros | Cons |
| You see interchange, assessment fees, and markup as separate lines | Your monthly cost moves up and down with the cards customers use |
| Network rate cuts show up on your statement | Statements have more line items to read |
| Comparing providers gets easier | You need to read network notices when they arrive |
| You can confirm your small merchant rates | Your provider’s markup still needs a close look |
Official Resources for Canadian Merchants
Check these official sources for the latest rates and rules:
- Code of Conduct for the Payment Card Industry in Canada (Financial Consumer Agency of Canada)
- Small business credit card fee agreements with Visa and Mastercard (Government of Canada)
- Understanding Visa interchange rates (Visa Canada)
- Visa Canada Upcoming Interchange Modifications, the notice behind every October 24 figure in this guide
- Merchant interchange rates and fees (Mastercard Canada)
- Understanding fees (Interac)
- Excise and GST/HST News No. 114 (Canada Revenue Agency)
How to Use This Guide
The current interchange rates in Canada reward businesses that pay attention. Small merchants already pay less than they did before October 2024. The October 2026 update brings more cuts for small online sellers, quieter cuts for in-store and industry-program merchants, a much higher Visa sales limit, one Visa business card increase, and a new Mastercard network fee.
The businesses that benefit most will check their eligibility, ask about tokenized and DCAP rates, steer everyday purchases toward lower-cost payment options, and make sure their provider passes every cut through.
AllayPay is a payment solutions provider serving merchants in the United States. We publish this guide because the Canadian changes are scattered across network notices and acquirer bulletins, and merchants deserve them in one place and in plain language. We do not board merchants in Canada.
If you process in Canada, take the October dates to your own provider and work through the questions in the section above. Your rights under the Code of Conduct sit with your acquirer, and the official sources listed below are the primary documents behind every figure in this guide.
If you process in the United States, our team can prepare a free, detailed side-by-side proposal so you can see where interchange ends and markup begins. Start with our guide to current interchange rates in the USA, learn how interchange-plus pricing works, or see how we support high-risk merchant accounts.
Frequently Asked Questions
What are the current interchange rates in Canada?
Interchange rates in Canada depend on the card, the network, and how the customer pays. Qualifying small businesses pay an annual weighted average of 0.95% on in-store consumer credit sales. From October 24, 2026, Visa’s small merchant online rates range from 1.05% for tokenized Core cards that meet DCAP criteria to 2.20% for basic online Visa Infinite Privilege payments.
Who sets interchange rates in Canada?
Visa sets default interchange rates in Canada, and the acquirer pays that fee to the card issuer. Mastercard sets its own schedule. Your provider then adds network fees and its own markup.
What is the average interchange fee in Canada?
Visa and Mastercard’s 2015 commitments set an average domestic consumer interchange rate of 1.50%. A 2018 agreement lowered that average to 1.40%, effective 2020. Since October 2024, qualifying small businesses pay an annual weighted average of 0.95% on in-store consumer credit sales.
Did credit card processing fees go down in Canada?
Yes, for eligible small businesses. Starting October 19, 2024, lower Visa and Mastercard fees took effect for small businesses under the sales thresholds. Online consumer credit interchange dropped by 10 basis points for qualifying businesses.
Who qualifies for small business interchange rates in Canada?
Businesses with annual Mastercard credit card volume below CAD $175,000 qualify for Mastercard’s lower fees, and each network reviews eligibility separately. On October 24, 2026, Visa raises the limit for its Small Merchant Interchange Program, covering both card-present and card-not-present rates, from CAD $300,000 to CAD $750,000 in total net VisaNet retail sales volume, which counts credit, debit and prepaid together.
What interchange changes take effect in October 2026?
Mastercard adds its NABU network fee on October 19, 2026. On October 24, 2026, Visa lowers small merchant online rates, lowers small merchant card-present and Industry Program rates, brings the Digital Commerce Authentication Program to Canada, cuts Visa Infinite Plus rates, and raises the Visa Business Credit Standard rate from 2.00% to 2.15%. Mastercard also raises its Wholesale Travel rates and adds Flex Program rates on the same date.
What is DCAP and is it worth adopting?
DCAP is Visa’s Digital Commerce Authentication Program, which launched in the United States in April 2026 and reaches Canada on October 24, 2026. It cuts interchange by 0.10 percentage points on qualifying online consumer credit payments when you send enhanced transaction data. A 0.05-point Enhanced Data Program fee applies, so the net benefit is about 0.05 points on its own and about 0.10 points if you also use network tokens.
Can businesses in Canada add a credit card surcharge?
Yes, outside Quebec. Merchants can surcharge only what they pay, up to a maximum of 2.4%. Quebec’s Consumer Protection Act does not allow surcharges on consumers. You cannot surcharge Interac debit. Merchants that surcharge do not qualify for Visa’s small merchant interchange program.
Why do rewards cards cost merchants more?
Basic cards usually carry lower processing fees, while cards with perks such as cash back or travel points usually carry higher fees. The October 2026 Visa table shows this gap: Visa Infinite Privilege rates sit well above Core card rates.
Do Canadian merchants pay GST/HST on card network fees?
Bill C-47 clarified that services from payment card network operators generally remain subject to GST/HST. The NABU rates published for Canada are the Mastercard base amounts plus 13%, an uplift acquirer notices attribute to this. Ask your provider for a statement breakdown that separates taxable and non-taxable fees.
Is Interac debit cheaper than credit cards for Canadian merchants?
For in-person sales, usually yes. Interac prices in-person debit as a per-transaction amount that varies by merchant tier and transaction size rather than as a percentage of the sale, so the gap widens as ticket sizes grow. Interac eCommerce through Apple Pay and Google Pay is priced as a percentage, so the same advantage does not apply online.
Who oversees the Payment Card Industry Code of Conduct in Canada?
The Financial Consumer Agency of Canada (FCAC) monitors how payment card network operators implement the Code. Merchants can file complaints directly with the FCAC.
How much notice do merchants get before fee changes in Canada?
Providers must give merchants between 30 and 60 days’ notice before a new fee or rate increase takes effect, and merchants can cancel without penalty within 70 calendar days after the effective date of the change. If notice falls outside that window, merchants can cancel at any time. The right does not apply to increases made under a pre-determined fee schedule included in the merchant’s agreement.
How can a small business lower interchange fees in Canada?
Check your eligibility for small merchant programs with each network. Ask whether your online checkout qualifies for tokenized and DCAP rates. Confirm that your provider passes rate cuts through in full. If an acquirer does not fully pass on interchange reductions, the Code of Conduct gives merchants the right to cancel without penalty.
