How much are Canadian merchants really charged by Visa & MC?

Can merchants charge a credit card fee in Canada?

Any Canadian merchant can add a surcharge, or extra fee, that you must pay to use debit or credit cards at their store (except in Quebec). Some payment networks forbid this surcharge. As of October 6, 2022, this fee is 2.4% or $2.40 per $100.

And there is a reason why.

Those merchants are getting hit by credit card fees that cut into their margins.

If you use a credit card without rewards, the merchants stand to make more money. If you use one of the best credit cards in Canada with excellent rewards, those merchants are paying a lot.

Many Amex cards fall into this category and could charge a merchant up to 4% in credit card fees. It's one of the ways Amex funds all their welcome offers, privileges and more.

If you're using a not-so-good credit card, unfortunately, the only person you're hurting is yourself.

Often merchants build credit card processing fees into their pricing at the max rates. So a "lesser than" credit card may actually be penalizing you because you're paying more for the products, but not earning the max rewards.

It's why it's critical to get the best credit card your credit score and income will allow.

Below we break down how much Visa and Mastercard are charging merchants based on credit card type.

How much does Visa and Mastercard charge merchants?