What are the main B2B payment methods in Canada?

In Canada, the primary methods for B2B payments are Electronic Funds Transfer (EFT), which forms the backbone of the payment infrastructure, and Pre-Authorized Debit (PAD), which is the standard for recurring transactions. Offering these local payment rails is crucial for meeting Canadian buyer expectations.

What is required for Pre-Authorized Debit (PAD) compliance?

PAD compliance is governed by Payments Canada’s Rule H1. It requires suppliers to meet strict identity verification for authorization, provide a 10-day written notice before the first debit unless waived, and maintain a clear audit trail of all agreements and confirmations.

Are there restrictions on credit card surcharging in Canada?

Yes, while surcharging is legal, it comes with strict rules. The fee is capped at 2.4% or the actual cost of acceptance, whichever is lower. It only applies to credit cards (not debit or prepaid), and it is prohibited entirely in Quebec. Businesses must also clearly disclose surcharging practices to buyers.