Interac debit and credit card costs for restaurants: reading your statement and choosing a processor

Payment costs are easy to ignore because they come out of the settlement before you see the money. For a restaurant with a thin margin, they are worth an afternoon every year. In Canada, the two card types you will handle most are Interac debit and credit cards, and they are priced in different ways. Your own statement is the real evidence.

How is Interac debit priced?

Interac debit charges are flat per-transaction fees, in fractions of a dollar, rather than a percentage of the sale. Interac publishes its fees on its website, and it has said its switch fee will rise on 1 November 2026. That switch fee is paid by the banks and processors, not by you directly, so what reaches you depends on your processor's contract and markup.

For a restaurant bill of fifty dollars, a flat per-transaction fee measured in cents is a small fraction of one percent. For a coffee at three dollars it is a bigger share, but still only cents.

How are credit cards priced?

As a percentage of the sale, plus a small per-transaction fee. Visa Canada committed to managing average domestic consumer credit interchange to 1.40 percent, and premium rewards and corporate cards sit above the average. Your processor then adds its markup. Some processors offer a flat rate for everything, which is simple but often higher than interchange-plus, where you pay the network's fee plus a stated markup.

Since October 2024, eligible small businesses have paid lower credit interchange in store. Finance Canada described the target as a weighted average of 0.95 percent, and Visa and Mastercard each set their own volume thresholds for who qualifies. Ask your processor whether you qualify and whether the saving reaches your statement.

The cost grows with the size of the bill, so a large group dinner on a premium card costs you more than the same bill on debit.

What does your statement show?

Look for these lines:

Line	What it tells you
Gross sales by card type	The mix of debit and credit
Interchange	The card network fees, passed through
Processor markup	What your provider adds
Per-transaction fees	The flat amounts
Monthly and terminal fees	Fixed costs
Chargebacks	Disputed payments
Other	Early termination, PCI or statement fees

Divide total fees by total card sales to find your effective rate. If it looks high, ask why, since your mix of debit and credit changes what is reasonable.

Why does the debit mix matter?

The more of your sales that are debit, the lower your costs. Many Canadians pay by debit, and tap-to-pay on debit costs far less than credit. Some owners put a small sign by the till that says debit preferred. Whether to nudge customers is a decision for your brand. Do not refuse credit cards, which would send diners away.

Watch your statement and your contract for changes to debit pricing, including any move from flat fees to a percentage.

What should you ask a processor?

1. What is the interchange-plus markup, in percent and cents per transaction?
2. Is the pricing the same for debit and credit?
3. What are the monthly, terminal and compliance fees?
4. What is the contract length and the early termination fee?
5. How fast do funds arrive, and are weekends included?
6. How are chargebacks handled and charged?
7. Does the terminal support tip prompts, split bills and table-side payments?
8. What does a surcharge setup look like, if I want one?

Get answers in writing. Quotes from a salesperson are not a contract.

How do you reduce costs?

• Ask your current processor to match a competitor's quote.
• Move to interchange-plus pricing if you are on a flat rate and your average ticket is small or your debit share is high.
• Review your statement every quarter.
• Reduce chargebacks with clear signs, itemized receipts and a tidy process for refunds.
• Encourage debit gently, or build the cost into prices.

What about tips on card payments?

Tips on cards are subject to processing fees too. Check how your processor treats the tip amount, and how you pay the staff, under the provincial tip rules. Keep records of tips paid out.

What about security?

Card data security is part of your contract. Use a modern terminal with chip and contactless support, keep the software updated and never write card numbers down. Ask your provider about its compliance requirements, and make sure staff know what to do if a terminal looks tampered with.

A yearly routine

Once a year, pull twelve months of statements, work out your effective rate, ask two competitors for quotes and decide whether to switch. It takes an afternoon and often saves a month's rent.

More guides for your business:

• Credit card surcharges for Canadian restaurants: the network rules, the cap and when to skip it
• Food truck licences in Toronto and Vancouver: city permits, health approval and insurance
• Selling gift cards at a restaurant: when GST/HST applies and how to record them

More in the Canadian guides for food businesses.