Table of Contents
- 1 Is it legal to charge customers for credit card fees Canada?
- 2 Do merchant fees get refunded?
- 3 Can a business pass on credit card fees to customers?
- 4 How can I recover my credit card fees?
- 5 Can merchants charge for using a debit card?
- 6 Should credit card fees be refunded?
- 7 What do I do with my collected GST/HST?
- 8 Why do I charge 13\% HST on sales in Canada?
- 9 Can I claim input tax credits under the GST/HST?
Is it legal to charge customers for credit card fees Canada?
As mentioned in the Best Answer to this thread, it’s prohibited to apply a surcharge to customers paying with credit cards in Canada. You can offer discounts to customers paying with cash or by cheque, but you cannot add a fee to cover card payment acceptance.
Do merchant fees get refunded?
When you credit your customer, the interchange fee — the largest part of the processing fee — is refunded back to the provider. Some providers return the refunded interchange to the merchant and only charge a small fee to route the refund. Some providers keep the interchange and charge a transaction fee.
Can a business pass on credit card fees to customers?
Business owners have to pay credit card processing fees. Because it’s so common to use credit cards, some business owners choose to pass some of the fees on to customers in the form of a credit card surcharge. While most states allow this practice, businesses must note these fees according to federal law.
Can retailers charge for card payments?
Credit card surcharges Surcharges are legal unless restricted by state law. If merchants add a surcharge, they must decide to add them at the brand or product level — but not both. A brand level surcharge adds the same fee to all credit card transactions from the same payment network, such as Visa or Mastercard.
Can shops charge credit card payments?
Credit and debit card surcharges were banned in January 2018, but retailers, letting agents and even a university have been found breaking the rules. The legislation means customers cannot be charged more for paying by card.
How can I recover my credit card fees?
To pass credit card fees onto your customer, you can:
- Add a line item for credit card surcharge to the invoice and add a standard amount to each invoice.
- Calculate to offset the 2.9\% + 30 cents charge per invoice.
Can merchants charge for using a debit card?
(a) In a sale of goods or services, a merchant may not impose a surcharge on a buyer who uses a debit or stored value card instead of cash, a check, credit card, or a similar means of payment.
Should credit card fees be refunded?
Depending on the circumstances of your credit card refund, you may be charged interest during the refund process. But if you have lodged a chargeback claim with your credit card provider and it is approved, you should be refunded the full amount as well as any interest that was charged on it during the investigation.
Can a business charge a credit card fee in Canada?
According to Visa, MasterCard and American Express merchant rules, merchants generally cannot charge you a service fee when consumers use their credit card. Learn more about the Code of Conduct for the Credit and Debit Card Industry in Canada.
Is it illegal for a business to charge a debit card fee?
Eleven states—California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas—and Puerto Rico have laws that prohibit merchants from charging consumers with surcharges on credit card transactions.
What do I do with my collected GST/HST?
What to do with collected GST/HST You are responsible to hold the GST/HST in trust until you send it to the Canada Revenue Agency (CRA). This includes the collectible tax that you charged and have not collected yet. You must keep the records that will support the information you provide on your GST/HST returns.
Why do I charge 13\% HST on sales in Canada?
For example, your store in Vancouver, B.C. delivers a mattress to your customer in Toronto, Ontario. You charge 13\% HST on the sale because the place of supply is Ontario. For detailed place-of-supply rules, see GST/HST rates and place-of-supply rules.
Can I claim input tax credits under the GST/HST?
GST/HST registrants generally cannot claim input tax credits to recover the GST/HST paid or payable on property and services acquired to make exempt supplies.
How to contact Canada Revenue Agency GST/HST rulings centre?
These centres are listed in GST/HST Memorandum 1.2, Canada Revenue Agency GST/HST Rulings Centres. If you wish to make a technical enquiry on the GST/HST by telephone, please call the toll-free number 1-800-959-8287.