Credit Card Cross-Border Fees

Understanding Cross-Border Fees

Cross-border fees are charged when a payment is processed between a card issued in one country and a merchant account registered in another. These fees are determined by the relationship between the card's country of issuance and the merchant account's country — not the currency being processed or where the merchant's bank account is located.

Canadian Merchant — US Card 

If you have a Canadian merchant account and a customer pays with a US-issued card, a cross-border fee applies. The card and merchant account are from different countries.

US Merchant — Canadian Card 

If you have a US merchant account and a customer pays with a Canadian-issued card, a cross-border fee also applies.

Canadian Merchant — USD Card Issued by a Canadian Bank 

If a Canadian merchant processes a USD card that was issued by a Canadian bank, no cross-border fee applies. Even though the card is in US dollars, it was issued in Canada — the same country as the merchant account.

Key Takeaway 
Cross-border fees are based on where the card is issued vs. where the merchant account is registered and not the currency of the transaction. If both the card and the merchant account are from the same country, no cross-border fee will apply.