Credit card processing fees in Canada, and what e-Transfer checkout costs instead

Credit card processing fees in Canada, and what e-Transfer checkout costs instead

Credit card processing fees in Canada typically start at about 2.9% plus 30 cents per online sale. That's the standard rate major card processors publish, as of October 2026. On a $500 order, that's $14.80 before any chargeback. The same $500 paid through Interac e-Transfer checkout costs $2.95.

Black Friday falls on November 27 this year. The weeks before it are when card fees add up fastest. Here is what a credit card sale costs once every fee is counted, set against e-Transfer checkout.

What are credit card processing fees made of?

Every credit card sale is split three ways before the money reaches you. The card issuer takes an interchange fee, the network adds its own fee, and the processor adds a markup. Most plans bundle all three into one rate, so you only see the total.

The interchange part is the one Ottawa has stepped in on. In October 2024, the federal government cut credit card interchange fees by up to 27% for qualifying small businesses. Online rates came down a little too. That cut applies to the issuer's share only. The processor's markup and per-sale fee are set by your contract.

The rules on fee disclosure are set out in the Code of Conduct for the Payment Card Industry in Canada. The Financial Consumer Agency of Canada oversees it, and a revised version took effect on October 30, 2024.

What does a credit card sale cost once every fee is counted?

The headline rate is only the first line. As of October 2026, the price lists of major card processors in Canada typically show:

• The rate. About 2.9% of each online credit card sale. In-person rates are usually a little lower, and cards typed in by hand cost more.

• The per-sale fee. About 30 cents on every online transaction, on top of the rate.

• Monthly fees. Many basic plans charge nothing a month. Extra features, terminals and higher plans can add a monthly fee.

A chargeback is when a customer disputes a sale with their card issuer. The money is then pulled back from you. You lose the sale, you pay the fee, and you often lose the product too. In the busy holiday weeks, a handful of disputes can wipe out the margin on dozens of orders.

How much does e-Transfer checkout cost per sale?

With Invincible Pay, e-Transfer checkout costs $1.95 + 0.20% per transaction. Full details are on our pricing page. Here are the same three sales side by side:

The gap grows with the size of the sale, because most of our fee is flat. Counting only the typical 2.9% credit card rate, e-Transfer checkout is cheaper on any sale above about $72. Add the 30-cent per-sale fee and the point where we come out ahead drops even lower.

On bigger orders, your customer's own bank sets how much they can send by Interac e-Transfer. Most people can send about $3,000 to $5,000 a day. A $2,000 order is within reach for most shoppers.

Credit card payment processing fees for high-risk businesses

If your business is rated high-risk, card fees climb fast. The typical credit card rate for high-risk processing is 5.9%. At that rate, e-Transfer checkout is cheaper on any sale above about $34.

Here's an example. Say you take $60,000 a month as 300 payments of $200. By credit card at 5.9%, that costs $3,540 a month. With e-Transfer checkout, it costs $705.

The same three sales at the high-risk rate:

High-risk and iGaming accounts also pay a $500 one-time setup fee and a $500 monthly minimum. The minimum counts toward your transaction fees, and the $705 in the example above is already past it. Our holiday offer runs November 1 to January 7. High-risk businesses onboarded by January 7 get both fees waived. See how it works on our high-risk payments page.

Other providers typically charge $3,000 or more to onboard and $1,500 or more a month. They typically add around 1% per e-Transfer request too.

What else changes when customers pay by e-Transfer?

The fee is the easy part to compare. These changes show up in your day-to-day work:

• Customers pay in 3 clicks. They pick Interac e-Transfer at checkout and approve the payment in their own online banking. No card number to type in.

• Every payment is matched to its order number. You don't have to hunt through deposits to work out who paid for what.

• No holding period. e-Transfer checkout payments land in your wallet with no holding period. An e-Transfer usually arrives in minutes, up to 30.

• No chargebacks. An Interac e-Transfer is pushed from the customer's bank. There is no card dispute process to pull it back.

From the wallet, you can send up to $25,000 per transfer, with no daily limit. You can also move funds out by EFT, which typically takes 1 business day. Wires inside Canada go out the same day.

Merchant fees in Canada before Black Friday

Card fees are easy to ignore in a slow month and hard to ignore in December. Before your Black Friday sales, check your effective rate, your per-sale fee and your chargeback fee. Then run your average order through the tables above.

Setup takes time, so start early. You can apply in about 20 minutes. Accounts are usually approved within 3 business days once we have your documents, and usually processing payments within 5. We work with Canadian businesses only, in Canadian dollars.

If those numbers beat your current card statement, tell us about your business. We'll show you what e-Transfer checkout would cost on your own sales.

Frequently asked questions

What are typical credit card fees in Canada?

As of October 2026, major card processors typically publish a standard rate of about 2.9% plus 30 cents per online credit card sale. In-person sales usually cost a little less, and cards keyed in by hand cost more. Chargebacks typically add about $15 each. High-risk businesses typically pay around 5.9%.

Is e-Transfer checkout cheaper than credit card processing?

Yes, on most sales. With Invincible Pay, e-Transfer checkout costs $1.95 + 0.20% per transaction. Against a typical 2.9% credit card rate, that is cheaper on any sale above about $72. Against the 5.9% typical for high-risk businesses, it's cheaper above about $34.

Can a customer reverse an Interac e-Transfer like a chargeback?

No. There is no chargeback process for Interac e-Transfer payments. The customer sends the money from their own bank, and it lands in your wallet with no holding period.

How fast do e-Transfer checkout payments arrive?

An e-Transfer usually arrives in minutes, up to 30. Each e-Transfer checkout payment is matched to its order number and lands in your wallet with no holding period.

Did the government lower credit card fees for small businesses?

Yes. In October 2024, the federal government cut credit card interchange fees by up to 27% for qualifying small businesses. The cut covers the card issuer's share of the fee. Your processor's markup, per-sale fee and chargeback fees are set by your own contract.