What is the difference between surcharging and cash discounting?

Surcharging adds a fee to credit card purchases. Cash discounting posts one price and gives a discount to customers who pay cash or Interac debit. Dual pricing shows both a card price and a cash price side by side. All three shift some of the credit card cost to the customer who chooses to pay by credit card. In Canada this only applies to credit cards, never to Interac debit.

Is surcharging allowed in my province?

Credit card surcharging has been allowed across most of Canada since October 2022, following the Visa and Mastercard settlement. It’s capped at a maximum of 2.4 percent and never more than your actual cost of acceptance for that card. It isn’t permitted in Quebec, and it’s never permitted on Interac debit. You must give at least 30 days notice to Visa or Mastercard and to your acquirer, post clear signage, and itemize the surcharge on the receipt. We check what’s allowed in your province before setting anything up.

Can these programs really lower my processing cost?

They can shift some of the credit card cost to the customer who chooses to pay by credit card. For many merchants, though, the bigger win is transparent interchange-plus pricing and making sure Interac debit is priced low, rather than surcharging. We help you compare both so you can choose what fits.

Surcharging vs cash discount vs dual pricing

By Chris Ste-Marie, Founder of AllProPay · Updated October 24, 2026

These customer-paid programs can lower your processing cost. They’re also the most misunderstood and most compliance-sensitive part of payments in Canada. Here’s what each one is, and the rules to know.

See if it fits your business

The simple idea behind all three

Part of the cost of accepting a credit card is carried by the customer who chooses to pay by credit card, instead of by you. The customer who pays cash or Interac debit avoids that fee. The three programs just present the idea differently. In Canada, this only ever applies to credit cards, never to Interac debit.

Surcharging

A separate fee on credit card purchases, shown as its own line on the receipt.

Allowed across most of Canada since October 2022, following the Visa and Mastercard settlement, within the firm limits listed below.
Not permitted in Quebec, where provincial consumer protection law effectively prohibits it. AllProPay is based in Quebec, so we’re clear with our neighbours: this option is off the table in our home province.
Done wrong, it creates real risk. That’s why it has to be set up correctly.

Cash discounting

The regular price is the card price, with a discount for customers who pay cash or Interac debit. It’s generally permitted, but it must be a genuine discount off the regular price, with the regular price clearly posted. Because it’s framed as a discount rather than an added fee, it’s treated differently from surcharging. The signage and receipt still have to be correct.

Dual pricing

Two prices side by side, a cash price and a card price, so the customer sees both and chooses. Many businesses find it the clearest and least awkward to explain, because there’s no surprise at checkout. Confirm it’s set up to your provincial and card-brand rules before you use it.

We offer dual pricing or cash discounting where it’s allowed: never in Quebec, and never on Interac debit.

What’s allowed

This is the part that matters most, and the part most processors hand-wave. Rules differ by province and by card brand, and they change. What we always keep in mind:

Surcharging isn’t permitted in Quebec.
The surcharge is capped at a maximum of 2.4 percent, and it can never exceed your actual cost of acceptance for that card.
Surcharging applies to credit cards only. It is never allowed on Interac debit.
You must give at least 30 days notice to Visa or Mastercard and to your acquirer before you start.
Disclosure matters: clear signage at the entry and point of sale, and the surcharge itemized as a separate line on the receipt.

We don’t set up something that puts you at risk. We check what’s allowed in your province, pick the program that fits, and configure the signage and receipts correctly. This is general information, not legal advice. Confirm the specifics with us and with qualified counsel before configuring anything.

The honest bottom line

Most merchants don’t need to surcharge.
The bigger win is usually transparent interchange-plus pricing, with Interac debit priced low.
For some higher-volume shops, a properly configured cash-discount or dual-pricing program can be a meaningful lever. The value depends on doing it right.

We explain your options and configure whatever you choose correctly for your province. Want the fee side first? Read Interac and card fees in Canada.