What Is a Credit Card Surcharge?

A credit card surcharge is an extra fee a business adds when you choose to pay by credit card.

It’s meant to help the business cover the cost of accepting credit cards.

KOHO Essential

If you want something you can use for everyday spending while you stay on top of your money, with KOHO Essential:

• It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.

• Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.

• Grow your savings with a 2% interest savings rate on your entire balance.

• Earn 1% cash back on groceries, eating & drinking, and transportation.

• You can subscribe to Credit Building for $10/month, it's an affordable way to build your credit history.

• Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).

How Much Is a Surcharge in Canada?

In Canada, card network rules can set limits. For example, there can be:

• a cap of 2.4%

• a rule that the surcharge can’t be more than the merchant’s actual cost to accept the credit card

Where Are Surcharges Allowed?

• In most of Canada, merchants may add a surcharge on credit card payments.

• Quebec is the big exception. Quebec consumer protection rules say a merchant cannot charge extra just because you paid by credit card or debit card.

How You’ll Know You’re Being Charged One

Merchants are expected to clearly tell you about the surcharge.

This can include signs at the point of sale, at the entrance, and on the receipt.

Is a Surcharge the Same as a Convenience Fee?

Not always, a surcharge is tied to paying by card.

A service or convenience fee is usually a separate fee for how you’re paying (like online, by phone, or through a specific channel). Some rules say a merchant should not stack these on top of each other.

How to Avoid a Surcharge

• Pay with debit or cash if the business offers it.

• Ask if there is a cash price or a different payment option.

• If you’re in Quebec and you see a card fee added, you can tell the merchant it’s not allowed.