As a home stager in Canada, accepting credit card payments can be convenient for both you and your clients. However, it’s crucial to understand the legalities surrounding the passing on of credit card fees to your customers. With new changes in effect, here’s what you need to know to stay compliant with the law.
Starting October 6, 2022, Canadian businesses (excluding those in Quebec) are now allowed to charge customers a fee of up to 2.4% for certain credit card transactions, also known as a surcharge. This fee is a result of multi-million dollar class action lawsuits brought against Visa, Mastercard, and banks by Canadian merchants who claimed that credit card processing fees charged by these networks were prohibitively expensive and restrictive.
According to the Canadian Code of Conduct for the Credit and Debit Card Industry, businesses are allowed to pass on the cost of accepting credit card payments to customers, but with some restrictions. You cannot charge more than the actual cost of processing the credit card payment, and you must clearly state the fee on the invoice or receipt. It’s crucial to note that you can’t add any extra fees on top of this amount.
It’s also essential to understand that you can’t discriminate against customers who choose to pay with a credit card. Charging a higher fee for credit card payments or refusing to accept them altogether is considered discrimination and is not allowed.
Before accepting a credit card payment, you must inform your customer of the fee that will be charged. This can be done through a sign posted in your office or on your website, or verbally if the customer is paying in person. It’s crucial to provide clear and transparent communication to avoid any misunderstandings or disputes.
While you can pass on the cost of credit card payments to your customers, you can’t do the same for debit card payments. This is because the cost of processing debit card payments is much lower than credit card payments.
In conclusion, by following these rules and regulations, your home staging business can legally pass on credit card convenience fees to your customers in Canada. It’s important to note that failing to comply with these rules could result in penalties or fines, so it’s always recommended to contact a legal professional for advice before making any changes. As a responsible business owner, it’s your duty to stay informed and up-to-date with the latest regulations to ensure that you’re operating within the law.
Are you in search of business tools and support for your Canadian home staging business? Consider becoming a member of the Real Estate Staging Association (RESA) that caters to North America. For a fee of $190 USD, you can access valuable resources and connect with a community of like-minded staging professionals who understand the ins and outs of running a staging company.
Click here to learn more about RESA.
Felicia has a background in production design and studied at Academy Of Art University where she had a focus in Motion Pictures And Television. In her free time you can find her reading about the latest marketing trends or hanging out with her husband in Disneyland.
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