Key takeaways
- Interac debit costs far less than credit cards.
- Interchange-plus pricing often saves money as volume grows.
- Keyed-in payments cost more than tap or insert.
- Monthly fees and terminal rentals add up; read your statement.
1. Encourage Interac debit
In-person debit is much cheaper than credit. Square, for example, charges 0.75% + 7¢ for Interac debit against 2.5% for in-person credit cards.
2. Match your pricing model to your size
Flat rates are simple for small businesses. As volume grows, interchange-plus pricing, offered by providers such as Helcim, often costs less because you pay the actual card cost plus a fixed markup.
3. Reduce keyed-in payments
Typing in card numbers costs more than tap or insert. Square charges 3.3% + 15¢ for keyed-in payments, against 2.5% in person, so use card readers or payment links where you can.
4. Check for monthly and equipment fees
Terminal rentals, software plans, statement fees and PCI fees can add hundreds of dollars a year. Compare the full monthly cost, not just the rate.
5. Watch international and conversion fees
Online sales to foreign cards can carry extra fees. Stripe in Canada adds 0.8% for international cards and 2% when currency conversion is needed.
6. Use bank debits for recurring invoices
For recurring business payments, bank debit providers such as GoCardless can cost less than cards, if your customers agree to pay that way.
7. Review your statement every year
Rates and fees change. Canada’s Code of Conduct for the Payment Card Industry requires processors to give notice of fee increases, so read those notices and compare providers each year.
A worked example
A retailer takes C$50,000 a month in card payments.
- Shifting 10% of sales (C$5,000) from credit to Interac debit saves about C$87 a month on percentage fees alone with Square’s rates (2.5% vs 0.75%), or over C$1,000 a year, before per-transaction debit fees.
- Moving C$5,000 of keyed-in payments to the card reader saves about 0.8 percentage points, or about C$40 a month.
Small changes like these add up without changing your provider.
Providers that can help
Interchange-plus with no monthly fee
Low Interac debit rate and simple pricing
Bank debits for recurring invoices
FAQs
What is the cheapest way to accept card payments in Canada?
For in-person sales, encouraging Interac debit is usually cheapest. Beyond that, the lowest-cost provider depends on your volume and card mix: flat rates suit small businesses, while interchange-plus often costs less as volume grows.
Can I pass card fees on to customers in Canada?
Credit card surcharging is allowed in most provinces under card network rules, with limits and disclosure requirements, but it isn’t permitted in Quebec and isn’t allowed on debit. Check the rules for your province and card networks before you add a surcharge.
How often should I review my processor?
At least once a year, and whenever you receive a fee increase notice.
Should I switch processors to save money?
Compare your current effective rate, total fees divided by card sales, with quotes from two or three providers using your real volume and card mix. Include monthly, equipment and cancellation fees.
What is my effective rate?
Your total processing fees for a month divided by your total card sales. It’s the simplest way to compare providers.
Sources: Square, Helcim, Stripe and GoCardless published Canadian pricing; Code of Conduct for the Payment Card Industry in Canada.