New Federal Tax on Fees from Payment Card Network Operators
On March 28, 2023, the Federal Budget proposed amendments to the Excise Tax Act (ETA) where certain services rendered by Payment Card Network Operators (PCNOs) will be subject to HST, which is non-recoverable by Moneris. This will impact the fees Moneris is charged and, by extension, passes through to all merchants. The excise tax update does not affect Interchange. On June 22, 2023 these changes to the ETA were enacted and Moneris will see PCNO fees increase by 13 per cent. For this reason, and in accordance with your merchant agreement, Moneris will pass through to you a corresponding increase of the affected fees as outlined in the table below. These increases will be applied beginning on November 1, 2023. If the amendments to the ETA are enacted after November 1, 2023, Moneris will correspondingly postpone its fee changes to be no earlier than the date when the ETA changes are enacted. The Government has also indicated that these taxes may be retroactively assessed. We continue to review this portion of the proposed legislation and will monitor how it will be applied by the Government to assess the potential impacts of this retroactive application to Moneris and our merchants. Moneris and other industry associations and players have had numerous and on-going discussions with Government officials regarding the proposed legislation, including its potential retroactive application. For more information on the GST/HST on Payment Card Clearing Services proposed in the 2023 Federal Budget, please refer to this link or contact your local Member of Parliament. Should you have questions in the meantime, please contact your account executive. View the Updated Fee Table.