Quebec merchants pay an average fee of between 1.5% and 2.5% on each credit card transaction, but hidden charges often add a further 15-25% to the posted cost. In 2026, despite the interchange cuts announced by the federal government, several discreet increases from Visa, Mastercard and even Interac are eating away at the promised savings.
At Geasy Pay, we believe merchants deserve to understand exactly what they’re paying. That’s why we’re publishing this first annual Barometer of transaction fees in Quebec, with the real numbers, the fees nobody’s showing you, and what you can do to reduce your bill.
Last update: February 2026
Portrait 2026 at a glance
Before going into detail, here’s what the average Quebec merchant will pay in 2026 on a $100 transaction:
| Payment methods | Interchange | Network fee | Markup processor |
|---|---|---|---|
| Visa/MC (eligible SMEs) | 0,95 $ | 0,08 – 0,10 $ | 0,15 – 0,70 $ + 0,05 – 0,15 $ |
| Visa/MC (standard) | 1,00 – 1,40 $ | 0,08 – 0,10 $ | 0,15 – 0,70 $ + 0,05 – 0,15 $ |
| Premium / Infinite card | 1,80 – 2,00 $ | 0,08 – 0,10 $ | 0,15- 0,70 $ + 0,05 – 0,15 $ |
| American Express (OptBlue) | 1,60 – 2,40 $ | included | 0,30 $ + 0,10 $ |
| Interac debit | 0.02 (fixed) | 0,006 $ | 0,05 $ |
| Interac Flash (contactless) | 0.02 (fixed) | 0,006 $ | 0,05 $ |
An Interac debit transaction costs between 8 and 15 times less than a credit card transaction. And a premium card (Visa Infinite, World Elite) costs up to twice as much as a basic card. It’s the merchant who pays the difference, not the consumer. In Quebec, unlike the rest of Canada, the Consumer Protection Act prohibits merchants from charging additional fees to customers who pay by credit card. So you absorb 100% of the charges.
How much it costs per year, depending on your sector
Transaction costs vary depending on your type of business. Here’s a realistic estimate based on average volumes and the typical payment mix in Quebec in 2026.
Catering (table service)
| Average annual sales | 500 000 – 800 000 $ |
| % payment by credit card | 65 – 75 % |
| % payment by Interac debit | 20 – 25 % |
| % cash payment | 5 – 10 % |
| Weighted average effective rate | ~1,8 % |
| Estimated annual transaction costs | 6 500 – 10 800 $ |
| Average ticket | 45 – 65 $ |
Restaurant peculiarity: tips are often added to the card transaction. So you pay interchange fees on the tip too, an invisible cost that can represent $500 to $1,000 a year for a busy restaurant.
Retail trade
| Average annual sales | 300 000 – 600 000 $ |
| % payment by credit card | 50 – 60 % |
| % payment by Interac debit | 30 – 35 % |
| % cash payment | 10 – 15 % |
| Weighted average effective rate | ~1,5 % |
| Estimated annual transaction costs | 3 400 – 6 800 $ |
| Average ticket | 30 – 80 $ |
Professional services (trade shows, clinics, workshops)
| Average annual sales | 150 000 – 400 000 $ |
| % payment by credit card | 70 – 80 % |
| % payment by Interac debit | 15 – 20 % |
| % cash payment | 5 – 10 % |
| Weighted average effective rate | ~1,9 % |
| Estimated annual transaction costs | 2 100 – 5 700 $ |
| Average ticket | 50 – 150 $ |
E-commerce
| Average annual sales | 100 000 – 500 000 $ |
| % payment by credit card | 90 – 95 % |
| % other payments (PayPal, bank transfer) | 5 – 10 % |
| Weighted average effective rate | ~2,4 % |
| Estimated annual transaction costs | 2 200 – 11 400 $ |
| Average ticket | 60 – 120 $ |
Why is it more expensive online? Card-not-present transactions carry a higher risk of fraud. The networks compensate with interchange rates that are 0.4 to 0.5% higher than in-store transactions.
The promised drop vs. the reality: what has really changed?
What the government has announced
In October 2024, the federal government implemented the agreement negotiated with Visa and Mastercard:
- 27% reduction in interchange fees for eligible SMEs
- New average rate: 0.95% interchange (vs ~1.4% before)
- Eligibility: annual credit card sales under $300,000 (Visa) or $175,000 (Mastercard)
- Estimated savings: $1 billion over 5 years for all Canadian SMEs
According to CFIB, over 60% of its 97,000 members are eligible. In Quebec, some 12,600 companies could benefit.
What really went down
Five payment processors have committed to transferring discounts to merchants:
| Processor | Repercussion? |
|---|---|
| Global Payments | Yes ✓ |
| Moneris | Yes ✓ |
| Chase Merchant Services | Yes ✓ |
| Square | Yes ✓ |
| TD Merchant Services | Yes ✓ |
| Stripe | No ✗ – publicly refused, citing operational costs |
SMEs that use Stripe directly, or via Shopify, Lightspeed or FreshBooks, don’t benefit from the reductions. This is a major blind spot, as many small Quebec businesses use these platforms without knowing that they’re paying more.
What has silently increased (the hidden costs of 2025-2026)
While the headlines celebrated the drop in interchange, Visa, Mastercard and Interac introduced or increased a series of ancillary fees:
| Date | Network | Change | Impact |
|---|---|---|---|
| January 2025 | Visa | New debit structure: CAN$0.03 uniform | Neutral |
| April 2025 | Interac | New “Network Access” fee: $0.0058/transaction | Increase |
| April 2025 | Visa | Business credit: standardised at 2.0% (Commercial) and 2.35% (Infinite Business) | Increase |
| July 2025 | Mastercard | Network valuation: 0.087% → 0.09 | Increase |
| September 2025 | Mastercard | New “acquirer license fee”: 0.0095%. | Increase (new fee) |
| September 2025 | Mastercard | New “clearing fee”: $0.005 – $0.0195 USD/tx | Increase (new fee) |
| October 2025 | Visa | Eligible SMEs: 0.81% → 0.77 | Decrease |
| November 2025 | Interac | Debit switching: $0.0199 → $0.0210 | Increase |
| January 2026 | Visa | Fee conversion from USD to CAD | Variable |
| January 2026 | Mastercard | Final phase “Processing Excellence Program” – penalties for non-compliance | Potential increase |
Over the last 12 months, there has been 1 decrease (Visa PME, -0.04%) compared with 7 increases or new fees. Real savings for merchants are therefore well below the 27% announced. Interchange reductions are real for eligible SMEs using a processor that passes them on. But increases in ancillary fees, often invisible on your statement, eat away at some of these gains. Check your monthly statements line by line!
How does Canada compare with the rest of the world?
Canada remains one of the countries with the highest credit card fees:
| Country / Region | Interchange limit (credit) | Regulated by law? |
|---|---|---|
| European Union | 0,3 % | Yes (since 2015) |
| Australia | 0,5 % | Yes |
| United Kingdom | 0.3% (domestic) | Yes |
| United States | ~1.5 – 2.5% (credit) / $0.144 + 4 bps (regulated debit) | Partially (debit only) |
| Canada | 0,95 – 2,0 % | No – voluntary agreement only |
The Canadian agreement is voluntary, not legislative. There is no legal obligation for networks to maintain reduced rates after the agreement expires. The CQCD(Conseil québécois du commerce de détail) is campaigning for a legislative cap of no more than 0.5%, similar to the European model. If Canada were to align its rates with those of the European Union, Canadian retailers would collectively save billions of dollars a year. According to the CFIB, credit card fees currently cost all Canadian businesses around $5 billion a year.
The costs your processor doesn’t show you
Beyond interchange and markup per transaction, several recurring fees are added to your bill. Here are the most common in Quebec:
| Fees | Typical amount | Frequency | Notes |
|---|---|---|---|
| Monthly statement fee | 5 – $15/month | Monthly | Some processors eliminate it |
| PCI compliance | 10 – $30/month | Monthly | Non-compliance penalty: $20 – $80/month |
| Batch fee | 0.10 – $0.30/batch | Daily | Each transaction batch closure |
| Annual service fee | 50 – $150/year | Annual | Often added without notice |
| Early termination fee | 200 – 500 $ | One-time | If you leave before the end of the contract |
| Chargeback | 15 – $50/incident | Per incident | Non-refundable even if you win |
| Terminal rental | 20 – $75/month | Monthly | Alternative: terminal purchase |
| Non-qualification fee | 0.5 – 1.5% surcharge | Per transaction | When a transaction does not meet the criteria |
For a small business with one terminal and modest volume, fixed monthly fees (even before the first transaction) can reach $50 to $150/month. Over a year, that’s $600 to $1,800 before counting a single transaction fee.
5 concrete actions to reduce your costs in 2026
1. Check your eligibility for the SME program
If your annual card sales are under $300,000 (Visa) or $175,000 (Mastercard), you should be paying 0.95% average interchange, not 1.4%. If your statement shows more, call your processor. You may not have been automatically enrolled.
2. Negotiate your markup
Interchange is set by Visa and Mastercard and you cannot change it. But your processor’s markup is negotiable. A competitive markup in 2026 in Quebec is between :
- 0.15% – 0.30% + $0.05 – $0.10/tx for high-volume businesses
- 0.30% – 0.50% + $0.10 – $0.15/tx for small businesses
If you pay more, you have room to negotiate.
3. Encourage payment by Interac debit
Each Interac transaction costs you between $0.08 and $0.20, compared with $1.50 to $2.50 for a $100 credit card transaction. For a restaurant doing $500,000 a year, shifting 10% of volume from credit to debit represents a saving of $650 to $1,150 a year.
4. Request an Interchange Plus (IC+) statement
There are three pricing models:
- Flat rate: simple but often more expensive (e.g.: 2.6% + $0.10)
- Tiered rates: opaque, with blurred categories (skilled / semi-skilled / unskilled)
- Interchange Plus (IC+): the most transparent, you see exactly the interchange + the markup
The Interchange Plus model is almost always the least expensive for businesses making over $5,000/month in card sales. Ask for it.
5. Audit your statement every month
Search specifically :
- PCI non-compliance fees (often activated by default if you haven’t completed the annual questionnaire)
- Undisclosed network fee increases (since April 2025, your processor must notify you 30 to 60 days in advance of any increase – this is a requirement of the FCAC Code of Conduct)
- Duplicate charges or lines you don’t understand – if you don’t understand a charge, there’s a good chance it shouldn’t be there.
What will change in the coming months
Changes confirmed
- New FCAC Code of Conduct Code of Conduct (in effect since October 2024, more stringent obligations since April 2025): your processor must notify you between 30 and 60 days before any fee increase or new fee. If they fail to do so, you have recourse.
- Mastercard – Program of Excellence (January 2026): penalty fees for transactions deemed “non-compliant” by Mastercard (incomplete authorization data, etc.). Make sure your terminal is up to date.
Trends to watch
- Increasing legislative pressure: the CQCD and CFIB are pushing for a legislative cap on fees. A change of federal government could accelerate (or slow down) this trend.
- Interac online: the rollout of Interac for online commerce could offer a cheaper alternative to credit cards for e-commerce. To be continued in 2026-2027.
- Digital wallet payments: Apple Pay, Google Pay use the same rails as Visa/Mastercard, fees remain the same. No savings to be expected here.
Frequently asked questions about transaction fees in Quebec
How much will credit card transaction fees cost in Quebec in 2026?
In 2026, the average Quebec merchant will pay between 1.5% and 2.5% of the amount of each credit card transaction. This rate includes interchange (set by Visa/Mastercard), network fees and payment processor markup. SMEs eligible for the federal program can obtain a reduced interchange rate averaging 0.95%.
What is the difference between Interac fees and credit card fees?
Interac debit transactions cost between $0.08 and $0.20 per transaction (fixed fee), i.e. an effective rate of 0.08 to 0.2%. Credit cards cost between 1.2 and 3.0% of the amount. Interac is therefore 8 to 15 times less expensive. The difference is explained by the model: Interac operates on a fixed fee basis, while Visa and Mastercard charge a percentage.
Is my business eligible for SME fee reductions?
Your business is eligible if your annual credit card sales do not exceed $300,000 (Visa) or $175,000 (Mastercard). Over 90% of small Quebec businesses meet these criteria. Contact us to ensure that discounts are applied to your statements.
Why do I pay more when a customer uses a premium card?
Premium cards (Visa Infinite, Mastercard World Elite) have higher interchange rates, often 1.8 to 2.0% compared with ~1% for a basic card. This is because these cards offer more rewards (points, cash back) to consumers, and it’s the merchants who finance these rewards via interchange.
Can credit card fees be billed to customers in Quebec?
No. Quebec is the only Canadian province where the Consumer Protection Act prohibits merchants from charging a surcharge to customers paying by credit card. In the rest of Canada, merchants have been able to apply a surcharge of up to 2.4% since October 2022. In Quebec, you pay the full charge.
How do I know if my processor is overloading me?
Ask for a detailed statement in “Interchange Plus” (IC+) format. This format clearly separates interchange (set by Visa/Mastercard, non-negotiable), network fees and your processor’s markup (the only negotiable part). If your processor refuses to provide this detail, it’s often a sign that you’re paying too much.
In a nutshell
| What we tell you | The reality |
|---|---|
| “Fees down 27%”. | Yes, but only on interchange, and only for eligible SMEs via a processor that passes on the savings. |
| “Interac fees are negligible” | True, but Interac still increased its switching fees and added network fees in 2025. |
| “All merchants benefit” | False, Stripe users (and therefore Shopify Payments, Lightspeed, FreshBooks) are excluded |
| “A single rate is simpler | Simpler but also more expensive, the fixed rate is almost always more expensive than Interchange Plus. |
| “We can’t do anything | False, markup negotiation, switch to IC+, Interac debit promotion, monthly audit |
Transaction fees are a cost that every Quebec merchant pays, but that very few understand in detail. This barometer is our contribution to greater transparency in the industry. Because an informed merchant is a merchant who pays the right price. Want to know exactly how much you could save? Contact the Geasy Pay team for an analysis of your transaction fee statements.