Processing fee<\/h3>\n\n\n\n
As of October 6, 2022, businesses across Canada (excluding Quebec) can charge customers a credit card processing fee when they pay for purchases with a credit card. The fee, also called an interchange fee, covers the costs of using credit card networks.<\/p>\n\n\n\n
Previously, business owners were responsible for paying processing fees. But following a class action settlement, Visa and Mastercard agreed to give Canadian businesses the choice of whether to pass this fee on to customers.<\/p>\n\n\n\n
Processing fees are capped at 2.4%, and not all businesses charge them. Businesses must disclose processing fees to customers at the point of transaction. These disclosures should be visible at storefront entries and on websites for online businesses. The fee will also appear as an itemized dollar amount on your receipt.<\/p>\n\n\n\n
Annual fee<\/h3>\n\n\n\n
Usually, you\u2019ll only run into annual fees with premium credit cards that offer extra benefits like rewards and cash back<\/a>, as well as other perks like a strong insurance package<\/a>, entertainment extras and airport lounge access<\/a>. While many people are adamantly opposed to paying an annual fee, the benefits can far outweigh the costs if you use many of the card\u2019s extra features or can rack up a lot of rewards or cash back. Make sure the annual fee is worth it<\/a> before deciding.<\/p>\n\n\n\n When you use your credit card to withdraw cash from an ATM, called a cash advance<\/a>, some credit card providers will charge a small cash advance fee (also called a cash equivalent fee), which might be a fixed amount, a percentage of the amount of the cash advance, or a combination of both.<\/p>\n\n\n\n This is one fee you really want to avoid, however, because cash advances are typically subject to a higher rate of interest than other purchases, in addition to the cash advance fee. Furthermore, unlike with your unpaid credit card balance<\/a>, with a cash advance, there is no interest-free grace period<\/a> \u2014 you start accruing interest immediately on your withdrawal.<\/p>\n\n\n\n Unlike a set credit card fee, interest<\/a> is charged based on either your unpaid balance or your cash advance amount. On your credit card statement<\/a>, there will usually be a separate section for cash advance interest charges versus interest you\u2019re charged on your overall balance.<\/p>\n\n\n\n Many credit cards in Canada charge a fee of about 2.5 per cent to convert any transactions in a foreign currency<\/a> into Canadian dollars. This fee is usually rolled into the conversion rate and thus many cardholders are unaware they are spending an extra 2.5 per cent whenever they buy anything online or in-person that is not in Canadian dollars.<\/p>\n\n\n\n Your credit card provider may charge you for reprinted statements, though most credit card companies give you free access to previous statements for up to at least a year online.<\/p>\n\n\n\n It\u2019s your responsibility to ensure you stay within your credit limit<\/a>. If you do go over your limit you may be charged an over-the-limit fee. The fee ranges anywhere from $25 to $50 in each given statement period you\u2019re over your limit. The only exception to this is if a merchant places a temporary hold on your credit card that goes over your limit but the charge itself is under the limit. For example, when buying gas or having groceries delivered.<\/p>\n\n\n\n Some credit cards will allow users to transfer a balance from another credit card<\/a> (usually to take advantage of a low-interest promotion), for a fee. This fee is typically a percentage of the amount transferred, though credit cards may offer promos whereby you can transfer your balance at no cost<\/a>.<\/p>\n\n\n\n If you issue a credit card cheque as payment and the cheque bounces because you don\u2019t have enough credit available on your card, you\u2019ll be charged a dishonoured payment fee. Likewise, you\u2019ll pay this fee if a payment on your credit card balance doesn\u2019t go through.<\/p>\n\n\n\n Some credit card providers charge an inactive account fee if you don\u2019t use your credit card for a set period of time (usually a year or longer). Sometimes this fee only applies to credit cards that carry a balance.<\/p>\n\n\n\n If you lose your credit card you may be charged a fee to replace it, though many issuers will send you a new card at no cost.<\/p>\n\n\n\n While some credit card companies may charge a late payment fee, many skip this fee. Instead, they may increase your interest rate, withdraw promotions, or even cancel your card.<\/p>\n\n\n \n\t\t\t\t\t\tCompare all different credit cards side-by-side and find out the best card that will meet your need with special perks and benefits\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t Information about whether or not you\u2019ll be charged interest<\/a> on your fees can be hard to find as it\u2019s not normally something credit card issuers clearly disclose in their credit card agreements. The best way to find out is to read your agreement carefully, ask the issuer about anything you do not understand, and contact your credit card provider to ask them what fees are \u201cinterest-bearing fees.\u201d<\/p>\n\n\n\n Fees are usually clearly marked (with a few exceptions noted above, like foreign exchange fees) on your credit card statement. They should also be clearly listed on your credit card agreement in a section often called a \u201cDisclosure Statement.\u201d If you have any uncertainty about fees, the best option is always to call your provider directly. If you see any charges or fees you don\u2019t understand, you can also dispute them by calling your credit card provider.<\/p>\n\n\n\n Sandra MacGregor is a freelance writer who has been covering personal finance, investing and credit cards for over a decade. Her work has appeared in a variety of publications like…<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\tRead more about Sandra MacGregor and explore their articles<\/span>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t<\/div>\n<\/div>\n\n\n\n\t Your credit card statement is a record of all your transactions during a billing period. It also includes important account information and details that can help you master credit card management and ensure you\u2019re not the victim of fraud.<\/p>\n\t<\/div>\n\n\t When you buy something with your credit card, the merchant is paid immediately and you pay later. If you need a refund, your issuer will reverse the charge and post a refund to your credit card account.<\/p>\n\t<\/div>\n\n\t A cash advance is a short-term cash loan \u2014 an expensive one \u2014 taken against the credit line on your credit card. It includes ATM withdrawals, balance transfers, lottery tickets and more.<\/p>\n\t<\/div>\n\n\t Identify the right credit card for your needs by considering your income, credit score and how you\u2019re likely to use the card.<\/p>\n\t<\/div>\n\n\t If you use a credit card, you will likely encounter a range of charges and fees. Make sure you aren\u2019t paying more than necessary by learning the basics of the most common credit card fees.<\/p>\n","protected":false},"author":4,"featured_media":238,"parent":102,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"page-templates\/article-sidebar.php","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"apple_news_api_created_at":"","apple_news_api_id":"","apple_news_api_modified_at":"","apple_news_api_revision":"","apple_news_api_share_url":"","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"middle","apple_news_slug":"","apple_news_sections":"[\"https:\\\/\\\/news-api.apple.com\\\/sections\\\/258a2d7c-962b-47be-93aa-4e3a3f4b4a02\"]","apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":"","_nw_pros_cons_block_schema":""},"content-classification":[14],"topic":[89],"cluster":[139],"pp_author":[24],"acf":[],"apple_news_notices":[],"yoast_head":"\nCash advance fee (aka cash equivalent fee)<\/h3>\n\n\n\n
Interest charges<\/h3>\n\n\n\n
Foreign currency conversion (aka foreign exchange fee)<\/h3>\n\n\n\n
Reprinting fees<\/h3>\n\n\n\n
Over-the-limit fees<\/h3>\n\n\n\n
Balance transfer fee<\/h3>\n\n\n\n
Dishonoured payment fee<\/h3>\n\n\n\n
Inactive account fees<\/h3>\n\n\n\n
Replacement fees<\/h3>\n\n\n\n
Late payment fees<\/h3>\n\n\n\n
Best Credit Cards in Canada<\/h4>\n\t\t\t\t\t\t\t\t\t
![\"Ad](\"https:\/\/www.nerdwallet.com\/ca\/wp-content\/uploads\/sites\/2\/2021\/07\/nerdwallet-canada_credit-cards-illustration-v2-e1648688043541.png\"){kind=icon}
\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\nWhat about interest on fees?<\/h2>\n\n\n\n
Where to review charges and fees<\/h2>\n\n\n\n
\n\t\t\tAbout the Author\t\t<\/h4>\n\n\t\t\t\t\t
\n\t\t\t\tDIVE EVEN DEEPER\t\t\t<\/h4>\n\t\t\n\t\t
![\"How](\"https:\/\/www.nerdwallet.com\/ca\/wp-content\/uploads\/sites\/2\/2021\/06\/GettyImages-1139096704-e1625070578781-460x191.jpg\")
\t<\/a>\n\t\t\t\n\t\n\t\tHow to Read Your Credit Card Statement\t<\/a>\n<\/h4>\n\n\t
![\"\"](\"https:\/\/www.nerdwallet.com\/ca\/wp-content\/uploads\/sites\/2\/2021\/07\/Sandra-MacGregor-e1626212852416-40x40.jpg\")
Sandra MacGregor<\/a>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n<\/div>![\"What](\"https:\/\/www.nerdwallet.com\/ca\/wp-content\/uploads\/sites\/2\/2021\/06\/GettyImages-1224365315-e1624922136881-460x191.jpg\")
\t<\/a>\n\t\t\t\n\t\n\t\tWhat to Know About Getting a Credit Card Refund\t<\/a>\n<\/h4>\n\n\t
![\"\"](\"https:\/\/www.nerdwallet.com\/ca\/wp-content\/uploads\/sites\/2\/2022\/03\/Shannon-Terrell-headshot-e1648578818586-40x40.png\")
Shannon Terrell<\/a>![\"\"](\"https:\/\/www.nerdwallet.com\/ca\/wp-content\/uploads\/sites\/2\/2021\/07\/Aaron-Broverman-e1626212778927-40x40.jpg\")
Aaron Broverman<\/a>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n<\/div>![\"How](\"https:\/\/www.nerdwallet.com\/ca\/wp-content\/uploads\/sites\/2\/2021\/06\/GettyImages-91290517-scaled-e1624991800936-460x192.jpg\")
\t<\/a>\n\t\t\t\n\t\n\t\tHow to Get a Cash Advance with a Credit Card\t<\/a>\n<\/h4>\n\n\t
![\"\"](\"https:\/\/www.nerdwallet.com\/ca\/wp-content\/uploads\/sites\/2\/2021\/07\/BarryChoi-e1626212860872-40x40.jpg\")
Barry Choi<\/a>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n<\/div>![\"How](\"https:\/\/www.nerdwallet.com\/ca\/wp-content\/uploads\/sites\/2\/2021\/06\/GettyImages-1187342834-e1624921271854-460x192.jpg\")
\t<\/a>\n\t\t\t\n\t\n\t\tHow to Choose the Best Credit Card For You\t<\/a>\n<\/h4>\n\n\t
Barry Choi<\/a>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n<\/div>\t\t<\/div>\n\t<\/section>\n\n","protected":false},"excerpt":{"rendered":"