It’s a simple question, and almost no one knows the answer. What percentage of your revenue do you pay to accept Visa or Mastercard payments? What are your Visa or Mastercard fees? Not the rate listed on your contract. The actual rate—the one that includes everything: per-transaction fees, monthly fees, terminal rental, compliance fees, and the fine print you’ve never read.
If you can’t answer within three seconds, you’re not in a position to negotiate. This page is here to change that. Would you rather we do it for you? Send us your latest statement. We’ll calculate your actual rate and let you know if it’s a good deal or not. It’s free and there’s no obligation.
The truth that few suppliers will tell you
The interchange fee is non-negotiable. This is the largest portion of your fees, and it is set by Visa and Mastercard themselves. It compensates the bank that issued your customer’s card. It is the same for everyone, regardless of your provider, and no one in Canada can lower it for you.
So when an ad promises to “reduce your Visa fees,” be wary of what it’s implying. It’s taking advantage of the fact that you don’t understand how your fees are structured. What varies from one provider to another isn’t the interchange fee. That’s all that’s been added on top. And here, the differences are significant. If you want to understand in detail how the interchange fee is calculated before continuing, our guide to interchange fees in Canada breaks down the mechanism.
The Five Areas Where Your Money Really Goes
Here are the items you can negotiate, listed in order of impact on your bill.
1. The supplier’s margin. This is the percentage added on top of the interchange fee. It is the most significant and least visible component, because most contracts do not itemize it.
2. Fixed fees per transaction. A few cents per payment. It may seem insignificant for a single transaction, but it can make a big difference if your average order value is low. A $4 cup of coffee and a $1,200 piece of furniture don’t bear the same burden of fixed costs at all.
3. Terminal rental. Billed monthly, often for years after the equipment has been depreciated. This is frequently the easiest item to renegotiate.
4. Recurring monthly fees. Statement fees, PCI compliance fees, service fees, inactivity fees. Taken individually, each one seems insignificant. But when added up over twelve months, they often amount to several hundred dollars.
5. Penalties and related fees. PCI non-compliance fees, chargeback fees, declined transaction fees. These should almost never appear. If they’re on your statement, there’s a problem to fix—not just a rate to negotiate.
Read your statement in three minutes
Take your most recent monthly statement. You’re looking for four digits—and only four.
- The volume processed. The total amount received via card during the month.
- Total expenses. Everything that was deducted from your account, including fixed and monthly fees. Please note that this amount is often broken down into several lines.
- Recurring monthly fees. Usually at the bottom of the statement, in small print.
- The rate listed on your contract. Keep an eye on it; it will serve as a point of comparison.
The Calculation That Matters
Total fees ÷ Volume processed × 100 = your actual rate
Compare this result to the rate listed in your contract. The difference between the two is what you didn’t know you were paying. Perform this calculation for three different months. If the actual rate fluctuates from month to month even though your business volume remains stable, this is a sign of a tiered pricing structure whose rules you don’t fully understand.
Flat Rate or Markup: The Choice That Makes All the Difference
There are two pricing models, and they are not comparable in the same way.
The flat-rate model. A single rate for all cards. Easy to understand, reassuring. But since the provider has to cover the costs of the most expensive cards, it averages the rates upward. If your customers mainly pay with Interac or a debit card, you end up paying for fees you don’t generate.
The cost-plus model. The actual interchange fee is billed to you exactly as is, and the supplier’s markup is shown separately. The statement is more detailed, but you can see exactly what you’re paying and to whom. This is the only model that makes negotiation possible.
Neither option is inherently better. It depends on your average order value and the breakdown of your customers’ payment methods. But if you’re on a flat-rate plan and have never compared options, there’s a good chance you’re paying for convenience.
What Quebec Merchants Actually Pay
Every year, we publish data collected from merchants in Quebec, broken down by sector and business size. This is the only way to know whether your actual rate is within the norm or significantly higher. Check out the 2026 Transaction Fees Barometer to see where you stand. If you’re in the restaurant industry, our Restaurant POS Guide details the specifics of the sector, including how tips affect the calculation.
What they’ll tell you, even if it doesn’t suit us
It often happens that a business owner sends us their report, and the conclusion is: you’re already in a good position—don’t change a thing. That’s what they say. Getting someone to switch just to save fifteen dollars a month isn’t worth it—neither for them nor for us. The hassle outweighs the benefit. What interests us are situations where there’s a real difference and where the change pays for itself within a few months. In other cases, you walk away with information you didn’t have before, and that’s already useful.
Three Costly Mistakes
Compare two displayed rates. Two providers may advertise the same percentage but charge you very different amounts, depending on what is included and what is charged separately. Only the actual rate is comparable.
Ignoring fixed costs when the average basket size is low. For businesses with high transaction volume and low transaction amounts, fixed fees per transaction often have a greater impact than the percentage fee. This is typically the case for convenience stores, coffee shops, and bakeries.
Don’t include the terminal rental fee in the calculation. It isn’t included in the rate, but it’s deducted from your account every month. Be sure to include it in the total fees before dividing, otherwise your actual rate will be incorrect.
Frequently asked questions
Is it really possible to reduce Visa and Mastercard fees?
The interchange fee—which is set by Visa and Mastercard and is the same for everyone—cannot be reduced. However, everything added on top of that is negotiable: the provider’s margin, fixed fees, terminal rental, and monthly fees. That’s where the savings lie.
How do I calculate my actual transaction fee rate?
Divide the total fees charged for the month by the total amount processed by card, then multiply by 100. Be sure to include monthly fees and the terminal rental fee; otherwise, the result will be inaccurate. Then compare this figure to the rate listed in your contract.
What is the difference between a flat rate and a cost-plus rate?
Under the flat-rate model, a single rate applies to all cards. Under the cost-plus model, the actual interchange fee is passed on to you exactly as is, and the provider’s margin is shown separately. The second model is more transparent and allows for negotiation.
Why do my Visa and Mastercard charges vary from month to month?
Because not all cards have the same cost. A rewards credit card costs more than an Interac debit card. If the mix of payment methods used by your customers changes, your actual rate will also change, even if your sales remain constant.
Are the fees higher for contactless payments?
Contactless technology itself does not affect pricing. What matters is the type of card used and the method of entry. A transaction where the card is physically present generally costs less than a transaction entered manually or remotely.
Can I charge my customers for credit card fees?
There are strict regulations governing this practice in Canada, including disclosure requirements and caps. Before you do anything, have your situation reviewed, as improper implementation could result in penalties.
How long does it take to analyze my statement?
You’ll receive your actual rate, your position relative to the Quebec market, and a list of renegotiable items within 24 hours. The analysis is free and comes with no obligation.
What happens if I’m already paying the right price?
We’re telling you: There’s no point in getting a merchant to change just for a marginal gain. You walk away with information you didn’t have before, and that’s the end of it.