How Payment Processing Fees Work in Canada
Canadian merchants typically pay fees in one of two pricing models:
- Flat-rate pricing: A fixed percentage (e.g., 2.6%) on every transaction, regardless of card type. Simple but expensive at volume.
- Interchange-plus pricing: The actual interchange rate (set by Visa/Mastercard) plus a small markup from your processor. More transparent and cheaper for most businesses over $3,000/month.
The interchange rate is what Visa and Mastercard charge — it varies by card type (credit vs. debit, rewards vs. basic, consumer vs. corporate). In Canada, typical interchange rates are:
- Consumer Visa/MC (basic credit): ~1.40%
- Consumer Visa/MC (rewards/travel cards): ~1.65–1.80%
- Business/corporate cards: ~2.00–2.50%
- Interac debit: flat ~$0.08–$0.15 per transaction
Full Fee Comparison — All Major Canadian Processors (2026)
| Processor | Pricing Model | In-Person Rate | Online Rate | Monthly Fee | Contract |
|---|---|---|---|---|---|
| Helcim | Interchange+ | IC + 0.15% + $0.06 | IC + 0.50% + $0.25 | $0 | Month-to-month |
| Stripe | Flat rate | 2.7% + $0.05 | 2.9% + $0.30 | $0 | Month-to-month |
| Square | Flat rate | 2.6% | 2.9% + $0.30 | $0 | Month-to-month |
| Moneris | Tiered/Flat | ~2.45–2.65% | Custom | $24.95–$49.95 | 2–3 year contract |
| Shopify Payments | Flat rate | 2.5% | 2.9% + $0.30 | Included w/ Shopify | Month-to-month |
| Clover | Flat rate | 2.3% + $0.10 | 3.5% + $0.10 | $9.95–$39.95 | Month-to-month |
| Lightspeed Payments | Flat rate | 2.6% + $0.10 | 2.6% + $0.10 | Included in plan | Annual |
Real Cost Comparison by Monthly Volume
Assumptions: 50% in-person, 50% online. Average ticket $75. Average interchange 1.60%, 200 transactions/month.
| Monthly Volume | Helcim | Stripe | Square | Moneris |
|---|---|---|---|---|
| $5,000/month | ~$109 | ~$145 | ~$143 | ~$152 |
| $10,000/month | ~$205 | ~$285 | ~$280 | ~$274 |
| $25,000/month | ~$490 | ~$700 | ~$690 | ~$638 |
| $50,000/month | ~$935 | ~$1,390 | ~$1,375 | ~$1,248 |
| $100,000/month | ~$1,800 | ~$2,775 | ~$2,740 | ~$2,445 |
Estimates only. Your actual costs depend on card mix, average ticket size, and specific contract terms.
Hidden Fees to Watch For
The advertised rate is just part of the picture. Watch for these additional fees when comparing Canadian payment processors:
- Monthly fee: Moneris charges $24.95–$49.95/month. Most others are $0.
- PCI compliance fee: Some processors charge $9.95–$19.95/month. Helcim and Stripe include it free.
- Chargeback fee: Typically $15–$25 per dispute. Varies by processor.
- International card surcharge: Stripe adds 1.5% for foreign cards. Helcim charges interchange on foreign cards.
- Terminal rental fee: Moneris and Clover charge $24–$35/month for terminal rental.
- Gateway fee: Some processors charge $0.05–$0.10 per transaction for gateway access.
- Early termination fee: Moneris and some others charge $200–$500 to cancel mid-contract.
- Statement fee: Some older processors still charge $10–$15/month for statements.
When Flat-Rate Beats Interchange-Plus
Flat-rate pricing (Square, Stripe) isn't always more expensive. It can be better when:
- You process primarily high-interchange cards (premium rewards/corporate cards) where IC+ costs spike
- Your volume is very low (under $2,000/month) and simplicity matters more than price
- You have very high transaction counts with small ticket sizes (IC+ per-transaction fees add up)
Interac Debit Fees
Interac debit fees are often significantly cheaper than credit card fees, which is why Canadian businesses should actively encourage Interac payments:
- Helcim: Interac tap/chip — ~$0.08/transaction
- Square: 2.6% (same as credit — Square doesn't differentiate)
- Moneris: ~$0.08–$0.12/transaction for Interac debit
- Stripe: Interac Online available but limited
For businesses with high average ticket sizes (over $100), the difference between a 2.6% credit card fee and a $0.10 Interac fee can be substantial — $2.50 vs. $0.10 on a $100 transaction.
Bottom Line
For most Canadian businesses, Helcim is the cheapest option once you pass $5,000/month in volume. Below that, Square or Stripe offer simplicity that may be worth the small premium. Whatever you choose, avoid long-term contracts with termination fees unless you're certain about the provider.