Why do I have to pay credit card processing fee?

Businesses are charged a fee when their customers pay by credit card. The credit card processing fee is called a merchant fee and is a percentage of the total purchase amount. The amount of the fee also varies by the type of card you use; the more perks for the cardholder, the higher the fee for the business.

Over the years, businesses have seen these fees risen, especially smaller businesses who often pay much more than larger companies to accept credit cards making it more difficult for them to compete with large companies. After consultation with several major credit card companies, on October 6, 2022, the Canadian Federation of Independent Business (CFIB) announced that businesses are now allowed to charge a processing fee for payments by credit card.